TIDMMOL
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Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic
components company, today reported results for its fourth quarter
and full fiscal year ended June 30, 2012.
Fourth Quarter Results
Three Months Ended
Jun. 30, Mar. 31, Jun. 30,
USD millions, except per share data 2012 2012 2011
Net revenue $ 858.5 $ 837.1 $ 913.7
Net income 72.0 64.9 77.3
Earnings per share 0.40 0.36 0.44
Net revenue for the June 2012 quarter was $858.5 million, a 2.6%
increase from the March 2012 quarter and 6.0% decrease from the
June 2011 quarter. In local currencies, net revenue increased 3.3%
compared with the March 2012 quarter and decreased 4.4% compared
with the June 2011 quarter. Orders for the June 2012 quarter were
$901.0 million, an increase of 3.3% from the March 2012 quarter,
resulting in a book-to-bill ratio of 1.05 to 1.0 for the June 2012
quarter.
Net income for the June 2012 quarter was $72.0 million or $0.40
per share, compared with $64.9 million, or $0.36 per share, for the
March 2012 quarter and $77.3 million, or $0.44 per share, for the
June 2011 quarter.
"We are encouraged with our margin performance in the June
quarter even though revenue was below our expectations. More
importantly, bookings have now increased sequentially in Q3 and Q4
and new product design activity remains extremely strong,"
commented Martin P. Slark, Chief Executive Officer. "At this time
of global economic uncertainty, we have several new product
introductions scheduled for the September quarter that, coupled
with the pre-Christmas build, are expected to drive revenue growth
at a rate in excess of the connector industry."
Other financial highlights for the quarter ended June 30,
2012:
-- Gross profit margin was 30.0%, compared with 30.5% in the March 2012
quarter and 30.8% in the June 2011 quarter. The March 2012
quarter
benefitted from favorable product mix, while the June 2011
quarter was
achieved with higher revenue and lower commodity costs.
-- SG&A expense was $161.6 million, compared with $163.9 million in the
March 2012 quarter and $167.9 million in the June 2011 quarter.
SG&A
expense included an insurance reimbursement of $6.0 million
($0.02 per
share) related to losses incurred as a result of the March
2011
earthquake and tsunami in Japan.
-- Backlog was $416.4 million, an increase of $39.5 million or 10.5% from
the March 2012 quarter. This increase is a direct result of
orders for
new products that will launch in the September 2012 quarter.
-- Capital expenditures were $77.7 million or 9.0% of revenue, including
significant investments for new product introductions.
-- The effective tax rate of 24.3% included a one-time benefit of $6.1
million ($0.03 per share) due to the recognition of foreign
tax
credits and the reversal of deferred tax liabilities related to
the
repatriation of foreign earnings. Excluding the one-time
benefit, the
effective tax rate was 30.8%.
Full Fiscal Year Results
Twelve Months Ended
Jun. 30, Jun. 30,
USD millions, except per share data 2012 2011
Net revenue $ 3,489.2 $ 3,587.3
Net income 281.4 298.8
Earnings per share 1.59 1.70
Net revenue for the full fiscal year ended June 30, 2012 was
$3.5 billion, a 2.7% decrease from the prior fiscal year. Net
revenue in local currencies decreased 4.3% from the prior fiscal
year. Net income for the year ended June 30, 2012 was $281.4
million or $1.59 per share, compared with net income of $298.8
million or $1.70 per share in the prior fiscal year. The effective
tax rate for the fiscal year ended June 30, 2012 was 29.7%.
"Despite the challenging economic environment, we are pleased
with our overall operating performance during fiscal 2012. We
worked hard to overcome disruptions from the earthquake and tsunami
in Japan and the floods in Thailand. We were also very successful
in fulfilling customer requirements in a record setting first
quarter, which was followed by a significant slowdown in overall
demand in the second quarter," commented Martin P. Slark. "For the
full year we increased our gross margin while significantly
improving our quality and delivery metrics, introduced many new
products and generated record cash flow which allowed us to
increase our dividend by 10%."
Outlook
Based upon current order rates, customer backlog and scheduled
new product launches, the Company estimates revenue in a range of
$900 to $940 million for the September 2012 quarter. At this level
of revenue, the Company expects earnings per share in a range of
$0.37 to $0.41 assuming constant foreign currency rates, unchanged
commodity prices and an effective tax rate in the range of 30% to
32%.
Earnings Conference Call Information
A conference call will be held on Wednesday, August 8, 2012 at
8:30 a.m. central time. Please dial (888) 679-8037 to participate
in the call. International callers should dial (617) 213-4849.
Please dial in at least five minutes prior to the start of the call
and refer to participant pass code 77269585. Internet users will be
able to access the webcast, including slide materials, live and in
replay in the "Investors" section of the Company's website at
www.molex.com. A 48-hour telephone replay will be available at
approximately 10:30 a.m. central time at (888) 286-8010 or (617)
801-6888 / pass code 71037736.
Other Investor Events
Sep. 05, 2012 - Citi's Annual 2012 Technology Conference in New
York
Sep. 12, 2012 - Deutsche Bank's dbAccess 2012 Technology
Conference in Las Vegas
Forward-Looking Statements
Statements in this release that are not historical are
forward-looking and are subject to various risks and uncertainties
that could cause actual results to vary materially from those
stated.Words such as "expect," "anticipate," "outlook," "forecast,"
"could," "project," "intend," "plan," "continue," "believe,"
"seek," "estimate," "should," "may," "assume," "potential,"
variations of such words and similar expressions are used to
identify these forward-looking statements.Forward-looking
statements are based on currently available information and
include, among others, the discussion under "Outlook."These
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions that are difficult to
predict. Respective risks, uncertainties, and assumptions that
could affect the outcome or results of operations are described in
Part 1, Item 1A of our Annual Report on Form 10-K for the year
ended June 30, 2011, and the Form 10-Q for the quarters ended
September 30, 2011, December 31, 2011 and March 31, 2012.
We have based our forward-looking statements on our management's
beliefs and assumptions based on information available to
management at the time the statements are made. We caution you that
actual outcomes and results may differ materially from what is
expressed, implied, or forecast by our forward-looking statements.
Reference is made in particular to forward-looking statements
regarding growth strategies, industry trends, global economic
conditions, success of customers, cost of raw materials, value of
inventory, availability of credit, currency exchange rates, labor
costs, protection of intellectual property, cost reduction
initiatives, acquisition synergies, manufacturing strategies,
product development introduction and sales, regulatory changes,
competitive strengths, natural disasters, unauthorized access to
data, government investigations and outcomes of legal proceedings.
Except as required under the federal securities laws, we do not
have any intention or obligation to update publicly any
forward-looking statements after the distribution of this report,
whether as a result of new information, future events, changes in
assumptions, or otherwise.
Molex Incorporated is a 73-year-old global manufacturer of
electronic, electrical and fiber optic interconnection systems.
Based in Lisle, Illinois, USA, the Company operates 40
manufacturing locations in 16 countries. The Molex website is
www.molex.com.
Editor's note: Molex is traded on the NASDAQ Global Select
Market (MOLX and MOLXA) in the United States and on the London
Stock Exchange. The Company's voting common stock (MOLX) is
included in the S&P 500 Index.
Molex Incorporated
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
June 30, June 30,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 637,417 $ 532,599
Marketable securities 14,830 13,947
Accounts receivable, less allowances
of $37,876 and $42,297, respectively 751,279 811,449
Inventories 531,825 535,953
Deferred income taxes 110,789 129,158
Other current assets 33,098 32,239
Total current assets 2,079,238 2,055,345
Property, plant and equipment, net 1,150,549 1,168,448
Goodwill 160,986 149,452
Non-current deferred income taxes 50,038 38,178
Other assets 170,692 186,429
Total assets $ 3,611,503 $ 3,597,852
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 104,933 $ 119,764
and short-term borrowings
Accounts payable 355,491 359,812
Accrued expenses:
Salaries, commissions and bonuses 89,404 90,913
Restructuring 10,250 14,049
Accrual for unauthorized activities in Japan 184,177 182,460
Other 112,381 112,666
Income taxes payable 30,221 2,383
Total current liabilities 886,857 882,047
Other non-current liabilities 18,174 23,879
Accrued pension and postretirement benefits 115,176 100,866
Long-term debt 150,032 222,794
Total liabilities 1,170,239 1,229,586
Commitments and contingencies
Total stockholders' equity 2,441,264 2,368,266
Total liabilities and stockholders' equity $ 3,611,503 $ 3,597,852
Molex
Incorporated
Condensed
Consolidated
Statements
of Income
(Unaudited)
(in thousands,
except
per share
data)
Three Months Ended Years Ended
June 30, June 30,
2012 2011 2012 2011
Net revenue $ 858,526 $ 913,666 $ 3,489,189 $ 3,587,334
Cost of sales 600,904 632,264 2,420,726 2,499,197
Gross profit 257,622 281,402 1,068,463 1,088,137
Selling, 161,581 167,914 657,732 643,462
general
and
administrative
Unauthorized 3,093 3,366 11,259 14,476
activities
in Japan
Total 164,674 171,280 668,991 657,938
operating
expenses
Income from 92,948 110,122 399,472 430,199
operations
Interest (663 ) (859 ) (5,360 ) (5,708 )
(expense)
income, net
Other income 2,836 (318 ) 6,155 5,448
(expense)
Total other 2,173 (1,177 ) 795 (260 )
income
(expense)
Income before 95,121 108,945 400,267 429,939
income taxes
Income taxes 23,160 31,669 118,890 131,131
Net income $ 71,961 $ 77,276 $ 281,377 $ 298,808
Earnings per
share:
Basic $ 0.41 $ 0.44 $ 1.60 $ 1.71
Diluted $ 0.40 $ 0.44 $ 1.59 $ 1.70
Dividends $ 0.2200 $ 0.2000 $ 0.8200 $ 0.7025
declared
per share
Average common
shares
outstanding:
Basic 176,437 175,253 175,980 174,812
Diluted 178,231 176,795 177,382 175,943
Molex Incorporated
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Years Ended
June 30,
2012 2011
Operating activities:
Net income $ 281,377 $ 298,808
Add (deduct) non-cash items
included in net income:
Depreciation and amortization 236,974 242,171
Deferred income taxes 10,236 37,514
Loss on sale of property, plant and equipment 2,580 4,843
Share-based compensation 23,335 22,461
Other non-cash items (20,561 ) (22,554 )
Changes in assets and liabilities:
Accounts receivable 44,161 (16,401 )
Inventories (5,338 ) (25,916 )
Accounts payable 312 (63,984 )
Other current assets and liabilities (10,246 ) (9,298 )
Other assets and liabilities 10,889 (1,493 )
Cash provided from operating activities 573,719 466,151
Investing activities:
Capital expenditures (227,101 ) (262,246 )
Proceeds from sales of property, 3,444 1,804
plant and equipment
Proceeds from sales or maturities 12,496 11,936
of marketable securities
Purchases of marketable securities (14,934 ) (8,328 )
Acquisitions (24,000 ) (18,847 )
Other investing activities 22,400 4,972
Cash used for investing activities (227,695 ) (270,709 )
Financing activities:
Proceeds from revolving credit facility 75,000 105,000
Payments on revolving credit facility (260,000 ) (20,000 )
Proceeds from short-term loans and - 57,620
current portion of long-term debt
Payments on short-term loans and current (53,748 ) (60,270 )
portion of long-term debt
Proceeds from issuance of long-term debt 150,000 -
Payments on long-term debt (575 ) (48,356 )
Cash dividends paid (140,638 ) (114,410 )
Exercise of stock options 7,873 7,269
Other financing activities (4,194 ) (4,044 )
Cash used for financing activities (226,282 ) (77,191 )
Effect of exchange rate changes on cash (14,924 ) 37,996
Net increase (decrease) in 104,818 156,247
cash and cash equivalents
Cash and cash equivalents, beginning of year 532,599 376,352
Cash and cash equivalents, end of year $ 637,417 $ 532,599
Molex IncorporatedSteve Martens, 630-527-4344VP Investor
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