Molex Inc. (MOLX, Financial) filed Quarterly Report for the period ended 2011-12-31.
Molex Inc. has a market cap of $4.67 billion; its shares were traded at around $26.52 with a P/E ratio of 15.3 and P/S ratio of 1.3. The dividend yield of Molex Inc. stocks is 3%.
Generally, we are able to pass through to our customers only a small portion of changes in the cost of copper and gold. However, we mitigate the impact of any significant increases in copper and gold prices by hedging with call options a portion of our projected net global purchases of copper and gold. The hedges reduced cost of sales by $3.6 million and $5.4 million for the three and six months ended December 31, 2011, respectively, and reduced cost of sales by $2.0 million for the six months ended December 31, 2010. The hedges did not materially affect operating results for the three months ended December 31, 2010.
The increase in gross profit due to currency translation during the three and six months ended December 31, 2011, was primarily due to a stronger Japanese yen against other currencies compared with the prior year periods.
Research and development expenditures, which are classified as selling, general and administrative expense, were approximately $44.8 million, or 5.2% of net revenue and $88.7 million, or 4.9% of net revenue for the three and six months ended December 31, 2011, respectively, compared with $42.2 million, or 4.7% of net revenue and $82.7 million, or 4.6% of net revenue, for the comparable prior year periods.
The Connector segment sells primarily to the telecommunication, infotech, consumer and automotive markets. Organic net revenue and segment net revenue decreased during the three and six months ended December 31, 2011 compared with the prior year periods. The decrease was primarily due to slower customer demand, particularly in the telecommunications and consumer markets. Price erosion, which is generally higher in the Connector segment compared with our other segment, also negatively impacted organic net revenue and segment net revenue. The decrease was partially offset by foreign currency translation, which favorably impacted net revenue by $14.4 million and $55.9 million for the three and six months ended December 31, 2011, respectively.
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Molex Inc. has a market cap of $4.67 billion; its shares were traded at around $26.52 with a P/E ratio of 15.3 and P/S ratio of 1.3. The dividend yield of Molex Inc. stocks is 3%.
Highlight of Business Operations:
Foreign currency translation increased net revenue approximately $15.3 million and $68.1 million for the three and six months ended December 31, 2011, respectively, principally due to a stronger Japanese yen. The following tables show the effect on the change in geographic net revenue from foreign currency translations to the U.S. dollar (in thousands):Generally, we are able to pass through to our customers only a small portion of changes in the cost of copper and gold. However, we mitigate the impact of any significant increases in copper and gold prices by hedging with call options a portion of our projected net global purchases of copper and gold. The hedges reduced cost of sales by $3.6 million and $5.4 million for the three and six months ended December 31, 2011, respectively, and reduced cost of sales by $2.0 million for the six months ended December 31, 2010. The hedges did not materially affect operating results for the three months ended December 31, 2010.
The increase in gross profit due to currency translation during the three and six months ended December 31, 2011, was primarily due to a stronger Japanese yen against other currencies compared with the prior year periods.
Research and development expenditures, which are classified as selling, general and administrative expense, were approximately $44.8 million, or 5.2% of net revenue and $88.7 million, or 4.9% of net revenue for the three and six months ended December 31, 2011, respectively, compared with $42.2 million, or 4.7% of net revenue and $82.7 million, or 4.6% of net revenue, for the comparable prior year periods.
The Connector segment sells primarily to the telecommunication, infotech, consumer and automotive markets. Organic net revenue and segment net revenue decreased during the three and six months ended December 31, 2011 compared with the prior year periods. The decrease was primarily due to slower customer demand, particularly in the telecommunications and consumer markets. Price erosion, which is generally higher in the Connector segment compared with our other segment, also negatively impacted organic net revenue and segment net revenue. The decrease was partially offset by foreign currency translation, which favorably impacted net revenue by $14.4 million and $55.9 million for the three and six months ended December 31, 2011, respectively.
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