Molex Reports Results for Fiscal 2013 Third Quarter and Announces Dividend Increase
Net revenue for the March 2013 quarter was $852.9 million, a decrease of 11.9% from the December
2012 quarter and an increase of 1.9% from the March 2012 quarter. In local currencies, net revenue
declined 11.5% compared with the December 2012 quarter and increased 3.0% compared with the March
2012 quarter. Orders for the March 2013 quarter were $909.2 million, a decrease of 1.1% from the
December 2012 quarter and an increase of 4.2% from the March 2012 quarter.
Net income for the March 2013 quarter was $44.8 million or $0.25 per share, compared with $70.4
million, or $0.39 per share, for the December 2012 quarter and $64.9 million, or $0.36 per share,
for the March 2012 quarter. The current quarter was impacted by the previously announced litigation
settlement related to unauthorized activities in Japan, which reduced net income by $21.8 million
($13.9 million after-tax or $0.08 per share) representing amounts related to the settlement not
previously accrued.
SGC cable,
MCC cable,“Revenue in the March quarter was weaker than expected,
largely due to the sharp reduction in demand from one customer for certain new programs that were
launched in the September quarter and ramped significantly in the December quarter. The remainder of
the business experienced a normal seasonal decline in revenue. We were able to mitigate the impact
stated Martin P. Slark, Chief Executive Officer. “Our backlog increased both sequentially and year
over year and our order rate for the quarter was stable with sequential improvements in the
automotive and industrial markets. The distribution channel was also stronger this quarter and we
are optimistic that the remainder of calendar 2013 will provide more robust growth
Other financial highlights for the quarter ended March 31, 2013:
Gross profit margin was 29.1%, compared with 29.9% in the December 2012 quarter and 30.5% in the
March 2012 quarter.
SG&A expense was $167.4 million, compared with $181.0 million in the December 2012 quarter and
$163.9 million in the March 2012 quarter.
Backlog was $463.0 million, an increase of 14.6% from the December 2012 quarter and an increase of
22.8% from the March 2012 quarter.
The book-to-bill ratio for the March quarter was 1.07 to 1 compared with 0.95 to 1 for the December
2012 quarter and 1.04 to 1 for the March 2012 quarter.
Capital expenditures were $55.9 million or 6.6% of revenue.
Inventory days outstanding was 89 days compared with 83 days in the December 2012 quarter and 93
Accounts receivable days outstanding was 70 days compared with 67 days in the December 2012 quarter
and 72 days in the March 2012 quarter.
The effective tax rate was 23.6%. Excluding the impact from the Japan litigation settlement, the
effective tax rate was 26.6%.
Japan Litigation Settlement
As previously announced on February 15, 2013, Molex and Mizuho Bank settled litigation regarding
previously reported unauthorized loans. Pursuant to the settlement, Molex agreed to pay ¥17 billion
($182.8 million) and Mizuho Bank agreed to release Molex cash accounts and provisional attachments
and to release Molex from any future claims. During the third quarter, the Company recognized a
charge to income from operations of $21.2 million ($13.5 million after-tax) largely for interest
expense and legal fees, and incurred related transaction costs charged to other income (expense) of
$0.6 million ($0.4 million after-tax).
Increase in Cash Dividend,I-PEX,SUR,XSR,
IDC cable,
LCEDI cable connector
The Board of Directors has approved an increase in the quarterly cash dividend to $0.24 per share,
an increase of 9.1% from the previous cash dividend of $0.22 per share. The increase is effective
for the cash dividend payable on July 25, 2013 to shareholders of record on June 28, 2013, for each
share of Common Stock (MOLX), Class A Common Stock (MOLXA) and Class B Common Stock, and will
continue quarterly until further action by the Board.
Outlook
Based upon current order rates and customer backlog, the Company estimates revenue in the range of
$870 to $910 million for the June 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 Tuesday, April 23, 2013 at 8:30 a.m. central time. Please dial
(888) 679-8034 to participate in the call. International callers should dial (617) 213-4847. Please
dial in at least five minutes prior to the start of the call and refer to participant pass code
58992005. 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 33101742.
Other Investor Events
May 8, 2013 / Jefferies 2013 Global Technology, Media and Telecom Conference in New York
June 13, 2013 / 33rd Annual William Blair Growth Stock Conference in Chicago
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 intended to identify such
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 quarters ended September 30, 2012 and December 31, 2012,
which are 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 forecasted 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, 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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