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8-K - 8-K - MOLEX INCd474293d8k.htm
EX-99.2 - EX-99.2 - MOLEX INCd474293dex992.htm

Exhibit 99.1

 

LOGO

CONTACT:

Steve Martens, VP Investor Relations

Molex Incorporated

630-527-4344

For Immediate Release

MOLEX REPORTS RECORD REVENUE FOR FISCAL 2013 SECOND QUARTER

Lisle, Illinois – January 23, 2013 — Molex Incorporated (NASDAQ: MOLX and MOLXA), a global electronic components company, today reported results for its second quarter ended December 31, 2012.

 

     Three Months Ended  
USD millions, except per share data    Dec 31,
2012
     Sept 30,
2012
     Dec 31,
2011
 

Net revenue

   $ 967.7       $ 916.9       $ 857.6   

Net income

     70.4         71.3         64.0   

Earnings per share

     0.39         0.40         0.36   

Net revenue for the December 2012 quarter was $967.7 million, an increase of 5.5% from the September 2012 quarter and 12.8% from the December 2011 quarter. In local currencies, net revenue increased 4.8% compared with the September 2012 quarter and 13.8% compared with the December 2011 quarter. Orders for the December 2012 quarter were $919.7 million, a decline of 2.6% from the September 2012 quarter and an increase of 12.8% from the December 2011 quarter.

Net income for the December 2012 quarter was $70.4 million or $0.39 per share, compared with $71.3 million, or $0.40 per share, for the September 2012 quarter and $64.0 million, or $0.36 per share, for the December 2011 quarter.

“Our results came in at the high end of our guidance range and we were particularly pleased to achieve record revenue this quarter as shipments were strong leading into the Christmas period. Bookings were weaker toward the latter part of the quarter and consistent with normal seasonal trends, were down 2.6% on a sequential basis. Our pipeline of new projects is strong and we will have a clearer view of the business trends for calendar year 2013 after Chinese New Year,” stated Martin P. Slark, Chief Executive Officer.

 

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Other financial highlights for the quarter ended December 31, 2012:

 

   

Gross profit margin was 29.9%, compared with 29.3% in the September 2012 quarter and 30.7% in the December 2011 quarter.

 

   

SG&A expense was $181.0 million, compared with $163.1 million in the September 2012 quarter and $163.1 million in the December 2011 quarter. The September 2012 quarter included insurance proceeds of $9.9 million related to losses incurred from the March 2011 earthquake and tsunami in Japan.

 

   

Backlog was $404.0 million, a decrease of 9.3% from the September 2012 quarter and an increase of 16.7% from the December 2011 quarter.

 

   

The book-to-bill ratio for the December quarter was 0.95 to 1 compared with 1.03 to 1 for the September quarter and 0.95 to 1 for the December 2011 quarter.

 

   

Capital expenditures were $78.6 million or 8.1% of revenue.

 

   

Inventory days outstanding was 83 days compared with 84 days in the September 2012 quarter and 91 days in the December 2011 quarter.

 

   

Accounts receivable days outstanding was 67 days compared with 69 days in the September 2012 quarter and 71 days in the December 2011 quarter.

 

   

The effective tax rate was 31.1%.

Outlook

Based upon current order rates and customer backlog, the Company estimates revenue in the range of $900 to $930 million for the March 2013 quarter. At this level of revenue, the Company expects earnings per share in the range of $0.33 to $0.37, 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, January 23, 2013 at 8:30 a.m. central time. Please dial (888) 679-8035 to participate in the call. International callers should dial (617) 213-4848. Please dial in at least five minutes prior to the start of the call and refer to participant pass code 88944879. 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 81162241.

Other Investor Events

Feb 12-14 – Goldman Sachs Technology and Internet Conference in San Francisco, CA

 

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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, and the Form 10-Q for the quarter ended September 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 15 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.

 

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Molex Incorporated

Condensed Consolidated Balance Sheets

(in thousands)

 

     Dec. 31,
2012
     June 30,
2012
 
     (Unaudited)         
ASSETS   

Current assets:

     

Cash and cash equivalents

   $ 705,047       $ 637,417   

Marketable securities

     11,738         14,830   

Accounts receivable, less allowances of $37,681 and $37,876, respectively

     745,851         751,279   

Inventories

     566,889         531,825   

Deferred income taxes

     101,398         110,789   

Other current assets

     33,109         33,098   
  

 

 

    

 

 

 

Total current assets

     2,164,032         2,079,238   

Property, plant and equipment, net

     1,177,342         1,150,549   

Goodwill

     195,030         160,986   

Non-current deferred income taxes

     48,063         50,038   

Other assets

     180,130         170,692   
  

 

 

    

 

 

 

Total assets

   $ 3,764,597       $ 3,611,503   
  

 

 

    

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY   

Current liabilities:

     

Current portion of short-term borrowings and long-term debt

   $ 115,869       $ 104,933   

Accounts payable

     344,997         355,491   

Accrued expenses:

     

Accrued liability for unauthorized activities in Japan

     170,665         184,177   

Income taxes payable

     40,876         35,360   

Other

     200,084         212,035   
  

 

 

    

 

 

 

Total current liabilities

     872,491         891,996   

Other non-current liabilities

     19,700         18,174   

Accrued pension and other postretirement benefits

     95,424         115,176   

Long-term debt

     230,000         150,032   
  

 

 

    

 

 

 

Total liabilities

     1,217,615         1,175,378   
  

 

 

    

 

 

 

Commitments and contingencies

     

Total stockholders’ equity

     2,546,982         2,436,125   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 3,764,597       $ 3,611,503   
  

 

 

    

 

 

 

 

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Molex Incorporated

Condensed Consolidated Statements of Income

(Unaudited)

(in thousands, except per share data)

 

     Three Months Ended
December 31,
    Six Months Ended
December 31,
 
     2012     2011     2012     2011  

Net revenue

   $ 967,735      $ 857,598      $ 1,884,656      $ 1,793,583   

Cost of sales

     678,565        594,661        1,327,069        1,237,918   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     289,170        262,937        557,587        555,665   
  

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative

     181,028        163,073        344,149        332,298   

Unauthorized activities in Japan

     1,627        2,723        4,188        5,645   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     182,655        165,796        348,337        337,943   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

     106,515        97,141        209,250        217,722   

Interest (expense) income, net

     (1,133     (2,094     (1,943     (3,485

Other (expense) income

     (3,151     1,482        (1,955     1,758   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income, net

     (4,284     (612     (3,898     (1,727
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     102,231        96,529        205,352        215,995   

Income taxes

     31,837        32,513        63,644        71,462   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 70,394      $ 64,016      $ 141,708      $ 144,533   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.40      $ 0.36      $ 0.80      $ 0.82   

Diluted

   $ 0.39      $ 0.36      $ 0.79      $ 0.82   

Dividends declared per share

   $ 0.2200      $ 0.2000      $ 0.4400      $ 0.4000   

Average common shares outstanding:

        

Basic

     177,123        175,830        176,888        175,656   

Diluted

     178,854        176,985        178,743        176,778   

 

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Molex Incorporated

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

     Six Months Ended
December 31,
 
     2012     2011  

Operating activities:

    

Net income

   $ 141,708      $ 144,533   

Add non-cash items included in net income:

    

Depreciation and amortization

     117,402        121,174   

Share-based compensation

     15,425        11,402   

Other non-cash items

     5,685        5,213   

Changes in assets and liabilities:

    

Accounts receivable

     5,006        94,400   

Inventories

     (34,831     (26,442

Accounts payable

     (5,326     (40,976

Other current assets and liabilities

     9,605        (7,183

Other assets and liabilities

     (97     (10,608
  

 

 

   

 

 

 

Cash provided from operating activities

     254,577        291,513   

Investing activities:

    

Capital expenditures

     (148,041     (95,055

Acquisitions

     (55,299     (24,000

Proceeds from sales of property, plant and equipment

     3,020        2,202   

Proceeds from sales or maturities of marketable securities

     8,399        6,553   

Purchases of marketable securities

     (5,081     (4,787

Insurance proceeds and other investing activities

     9,957        —     
  

 

 

   

 

 

 

Cash used for investing activities

     (187,045     (115,087

Financing activities:

    

Proceeds from revolving credit facility

     90,000        75,000   

Payments on revolving credit facility

     (10,000     (220,000

Proceeds from short-term loans and debt

     178,089        —     

Payments on short-term loans and debt

     (158,620     (27,389

Proceeds from issuance of long-term debt

     —          149,713   

Cash dividends paid

     (116,706     (70,186

Exercise of stock options

     4,804        2,630   

Other financing activities

     (2,115     (2,087
  

 

 

   

 

 

 

Cash used for financing activities

     (14,548     (92,319

Effect of exchange rate changes on cash

     14,646        (9,370
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     67,630        74,737   

Cash and cash equivalents, beginning of period

     637,417        532,599   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 705,047      $ 607,336   
  

 

 

   

 

 

 

 

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