Molex Inc. (MOLX, Financial) filed Quarterly Report for the period ended 2008-12-31.
Molex is one of the leading manufacturers of electronic electrical and fiber optic interconnection products and systems; switches; value-added assemblies; and application tooling. Molex serves original equipment manufacturers in industries that include automotive computer computer peripheral business equipment industrial equipment telecommunications consumer products and premise wiring. Molex Inc. has a market cap of $2.42 billion; its shares were traded at around $13.37 with a P/E ratio of 9.3 and P/S ratio of 0.73. The dividend yield of Molex Inc. stocks is 4.43%. Molex Inc. had an annual average earning growth of 4.6% over the past 10 years.
We expect to incur total restructuring and asset impairment costs related to these actions ranging from $200 $220 million, of which the impact on each segment will be determined as the actions become more certain. Management approved several actions related to this plan. A portion of this plan involves cost savings or other actions that do not result in incremental expense, such as better utilization of assets, reduced spending and organizational efficiencies. This plan includes employee reduction targets throughout the company, and we expect to achieve these targets through ongoing employee attrition and terminations. We expect to complete the actions under this plan by June 30, 2010 with estimated annual cost savings ranging from $190 $210 million. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further discussion.
During the second quarter of fiscal 2009, we executed actions to reduce headcount and lower the cost of employee benefits. These actions included a reduction in headcount, changes in retirement medical benefits, a reduction in planned contributions to the profit sharing trust and a reduction in the planned incentive bonus payout. In addition, manufacturing employees worked reduced hours in the plants most impacted by the economic slowdown. The one-time cost reductions relating to employee benefits decreased cost of sales and selling, general and administrative expense by $14.2 million during the quarter. Due to the strengthening of the U.S. dollar in the second quarter, we recognized foreign currency exchange gains of $14.3 million.
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Molex is one of the leading manufacturers of electronic electrical and fiber optic interconnection products and systems; switches; value-added assemblies; and application tooling. Molex serves original equipment manufacturers in industries that include automotive computer computer peripheral business equipment industrial equipment telecommunications consumer products and premise wiring. Molex Inc. has a market cap of $2.42 billion; its shares were traded at around $13.37 with a P/E ratio of 9.3 and P/S ratio of 0.73. The dividend yield of Molex Inc. stocks is 4.43%. Molex Inc. had an annual average earning growth of 4.6% over the past 10 years.
Highlight of Business Operations:
During fiscal 2007, we undertook a restructuring plan designed to reduce costs and to improve return on invested capital in connection with a new global organization that was effective July 1, 2007. A majority of the plan relates to facilities located in North America and Europe and in general, the movement of manufacturing activities at these plants to other facilities. Net restructuring cost during the quarter ended September 30, 2008 was $21.8 million, consisting of $2.7 million of asset impairments and $19.1 million of severance. These costs included $12.1 million relating to a planned plant closing in France. Net restructuring cost during the quarter ended December 31, 2008 was $39.8 million, consisting of $4.4 million in asset impairments and $35.4 million of severance. These costs include $7.8 million relating to a planned plant closing in Japan and $8.8 million relating to a planned plant closing in Germany. The cumulative expense since we announced the restructuring plan totals $129.7 million.We expect to incur total restructuring and asset impairment costs related to these actions ranging from $200 $220 million, of which the impact on each segment will be determined as the actions become more certain. Management approved several actions related to this plan. A portion of this plan involves cost savings or other actions that do not result in incremental expense, such as better utilization of assets, reduced spending and organizational efficiencies. This plan includes employee reduction targets throughout the company, and we expect to achieve these targets through ongoing employee attrition and terminations. We expect to complete the actions under this plan by June 30, 2010 with estimated annual cost savings ranging from $190 $210 million. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further discussion.
During the second quarter of fiscal 2009, we executed actions to reduce headcount and lower the cost of employee benefits. These actions included a reduction in headcount, changes in retirement medical benefits, a reduction in planned contributions to the profit sharing trust and a reduction in the planned incentive bonus payout. In addition, manufacturing employees worked reduced hours in the plants most impacted by the economic slowdown. The one-time cost reductions relating to employee benefits decreased cost of sales and selling, general and administrative expense by $14.2 million during the quarter. Due to the strengthening of the U.S. dollar in the second quarter, we recognized foreign currency exchange gains of $14.3 million.
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