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Molex Inc. Reports Operating Results (10-Q)

January 29, 2010 | About:

Molex Inc. (MOLX) filed Quarterly Report for the period ended 2009-12-31.

Molex Inc. has a market cap of $3.53 billion; its shares were traded at around $20.57 with a P/E ratio of 158.3 and P/S ratio of 1.4. The dividend yield of Molex Inc. stocks is 2.9%. Molex Inc. had an annual average earning growth of 4.6% over the past 10 years.MOLX is in the portfolios of Dodge & Cox, Bruce Kovner of Caxton Associates.

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 three months ended December 31, 2009 was $25.6 million, consisting of $6.8 million in asset impairments and $18.8 million of employee termination benefits. Net restructuring cost during the three months ended September 30, 2009 was $55.9 million, consisting of $13.2 million of asset impairments and $42.7 million for employee termination benefits that were net of $3.8 million pension curtailment gain. Net restructuring costs during the three months ended December 31, 2008, was $39.8, consisting of $4.4 million in asset impairments, $35.4 million of severance. The cumulative restructuring costs and related asset impairments since we announced the restructuring plan totaled $279.4 million.

We expect to incur total restructuring and asset impairment costs related to these actions approximating $300 million. Management approved several actions related to this plan. The total cost estimates increased due to additional non-cash impairments for buildings resulting from continued weakness in the commercial real estate markets and the latest additions to the restructuring actions, which included reorganization of our global product divisions in fiscal 2009. 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. See Note 2 of the Notes to the Consolidated Financial Statements for further discussion. We expect to complete the actions under this plan by June 30, 2010 with estimated annual cost savings of $205 million.

The general weakening of the U.S. dollar against the euro and Japanese yen increased revenue by approximately $31.9 million and $26.1 million for the three and six months ended December 31, 2009, respectively. The following tables show the effect on the change in geographic net revenue from foreign currency translations to the U.S. dollar (in thousands):

Read the The complete Report

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