TIDMMOL
Molex Incorporated (NASDAQ: MOLX) and (NASDAQ: MOLXA), a global
electronic components company, today reported results for its first
quarter ended September 30, 2012.
First Quarter Results
Three Months Ended
Sept. 30, Jun. 30, Sept. 30,
USD millions, except 2012 2012 2011
per share data
Net revenue $ 916.9 $ 858.5 $ 936.0
Net income 71.3 72.0 80.5
Earnings per share 0.40 0.40 0.46
Net revenue for the September 2012 quarter was $916.9 million, a
6.8% increase from the June 2012 quarter and a 2.0% decline from
the September 2011 quarter. In local currencies, net revenue rose
6.9% compared with the June 2012 quarter and increased 0.6%
compared with the September 2011 quarter. Orders for the September
2012 quarter were a record $943.9 million, an increase of 4.8% from
the June 2012 quarter and 3.7% from the September 2011 quarter,
resulting in a book-to-bill ratio of 1.03 to 1.0 for the September
2012 quarter.
Net income for the September 2012 quarter was $71.3 million or
$0.40 per share, compared with $72.0 million, or $0.40 per share,
for the June 2012 quarter and $80.5 million, or $0.46 per share,
for the September 2011 quarter.
"Despite challenging global economic conditions and growing
uncertainty in end markets, Molex continues to introduce new
products driving growth higher than the overall connector market.
With our reputation for quality, customer service and engineering,
Molex is recognized as an industry leader and increasingly the
supplier of choice as our customers continue to require innovative
interconnect solutions," commented Martin P. Slark, Chief Executive
Officer. "We have been expanding our M&A efforts over the past
year and are pleased to announce that we acquired Affinity Medical
Technologies in early October. Affinity manufactures custom medical
interconnect products and systems and will complement our strategy
of focusing on high growth markets."
Other financial highlights for the quarter ended September 30,
2012:
-- Gross profit margin was 29.3%, compared with 30.0% in the June 2012
quarter and 31.3% in the September 2011 quarter. The current
quarter
gross margin was impacted by start-up costs and product mix
related to
new programs launched in the quarter.
-- SG&A expense was $163.1 million, compared with $161.6 million in the
June 2012 quarter and $169.2 million in the September 2011
quarter.
SG&A expense included insurance proceeds of $9.9 million
($0.03 per
share) in the September 2012 quarter and $6.0 million ($0.02
per
share) in the June 2012 quarter related to losses incurred from
the
March 2011 earthquake and tsunami in Japan.
-- Backlog was $445.3 million, an increase of 6.9% from the June 2012
quarter and 15.0% from the September 2011 quarter. These
increases are
the result of orders for new products that were launched in
the
September 2012 quarter.
-- Capital expenditures were $69.4 million or 7.6% of revenue.
-- Inventory days outstanding was 84 days compared with 87 days in the
June 2012 quarter and 84 days in the September 2011 quarter.
-- Accounts receivable days outstanding was 69 days compared with 70 days
in the June 2012 quarter and 69 days in the September 2011
quarter.
-- The effective tax rate was 30.8%.
-- Cash dividends paid were $0.22 per share, an increase of 10% from the
June 2012 quarter.
Outlook
Based upon current order rates and customer backlog, the Company
estimates revenue in a range of $930 to $970 million for the
December 2012 quarter. At this level of revenue, the Company
expects earnings per share in a range of $0.36 to $0.40, assuming
constant foreign currency rates, unchanged commodity prices and an
effective tax rate of 32%.
Earnings Conference Call Information
A conference call will be held on Tuesday, October 23, 2012 at
8:30 a.m. central time. Please dial (888) 679-8018 to participate
in the call. International callers should dial (617) 213-4845.
Please dial in at least five minutes prior to the start of the call
and refer to participant pass code 14202097. 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 84134444.
Other Investor Events
Nov. 14, 2012 - UBS Global Technology Conference in New York
Dec. 04, 2012 - NASDAQ OMX 29th Investor Program in London
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, 2012, which is incorporated by reference and in
other reports that Molex files or furnishes with the Securities and
Exchange Commission.
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, foreign 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, income tax fluctuations, 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 74-year-old global manufacturer of
electronic, electrical and fiber optic interconnection systems.
Based in Lisle, Illinois, USA, the Company operates 41
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
(in thousands)
Sept. 30, June 30,
2012 2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 685,972 $ 637,417
Marketable securities 16,111 14,830
Accounts receivable, less allowances of 770,976 751,279
$37,401 and $37,876, respectively
Inventories 564,377 531,825
Deferred income taxes 109,101 110,789
Other current assets 38,341 33,098
Total current assets 2,184,878 2,079,238
Property, plant and equipment, net 1,178,875 1,150,549
Goodwill 161,163 160,986
Non-current deferred income taxes 52,653 50,038
Other assets 168,309 170,692
Total assets $ 3,745,878 $ 3,611,503
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of short-term borrowings $ 75,074 $ 104,933
and long-term debt
Accounts payable 412,429 355,491
Accrued expenses:
Accrual for unauthorized activities in Japan 189,040 184,177
Income taxes payable 49,828 35,360
Other 228,098 212,035
Total current liabilities 954,469 891,996
Other non-current liabilities 19,321 18,174
Accrued pension and other 113,847 115,176
postretirement benefits
Long-term debt 150,000 150,032
Total liabilities 1,237,637 1,175,378
Commitments and contingencies
Total stockholders' equity 2,508,241 2,436,125
Total liabilities and stockholders' equity $ 3,745,878 $ 3,611,503
Molex Incorporated
Condensed Consolidated Statements of Income
(Unaudited)
(in thousands, except per share data)
Three Months Ended
September 30,
2012 2011
Net revenue $ 916,921 $ 935,985
Cost of sales 648,504 643,257
Gross profit 268,417 292,728
Selling, general and administrative 163,121 169,225
Unauthorized activities in Japan 2,561 2,922
Total operating expenses 165,682 172,147
Income from operations 102,735 120,581
Interest (expense), net (810 ) (1,391 )
Other income 1,196 276
Total other income (expense), net 386 (1,115 )
Income before income taxes 103,121 119,466
Income taxes 31,807 38,949
Net income $ 71,314 $ 80,517
Earnings per share:
Basic $ 0.40 $ 0.46
Diluted $ 0.40 $ 0.46
Dividends declared per share $ 0.2200 $ 0.2000
Average common shares outstanding:
Basic 176,621 175,466
Diluted 178,564 176,585
Molex Incorporated
Condensed Consolidated Statements
of Cash Flows
(Unaudited)
(in thousands)
Three Months Ended
September 30,
2012 2011
Operating activities:
Net income $ 71,314 $ 80,517
Add non-cash items included
in net income:
Depreciation and amortization 57,742 61,239
Share-based compensation 6,160 5,135
Other non-cash items 3,767 5,991
Changes in assets and liabilities:
Accounts receivable (7,903 ) 22,927
Inventories (28,902 ) (18,260 )
Accounts payable 49,569 (10,702 )
Other current assets and liabilities 4,326 28,890
Other assets and liabilities 11,331 (25,188 )
Cash provided from operating activities 167,404 150,549
Investing activities:
Capital expenditures (69,413 ) (42,804 )
Proceeds from sales of property, 1,914 1,396
plant and equipment
Proceeds from sales or maturities 3,168 4,868
of marketable securities
Purchases of marketable securities (4,099 ) (2,777 )
Insurance proceeds and other 9,722 -
investing activities
Cash used for investing activities (58,708 ) (39,317 )
Financing activities:
Proceeds from revolving credit facility 10,000 30,000
Payments on revolving credit facility (10,000 ) (195,000 )
Payments on short-term loans and debt (31,611 ) (27,409 )
Proceeds from issuance of long-term debt - 150,000
Cash dividends paid (38,827 ) (35,068 )
Exercise of stock options 1,715 620
Other financing activities (1,026 ) (1,014 )
Cash used for financing activities (69,749 ) (77,871 )
Effect of exchange rate changes on cash 9,608 (8,584 )
Net increase in cash and cash equivalents 48,555 24,777
Cash and cash equivalents, 637,417 532,599
beginning of period
Cash and cash equivalents, end of period $ 685,972 $ 557,376
Molex IncorporatedSteve Martens, VP Investor
Relations630-527-4344
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