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Electronics Production |

Molex post profit in second quarter

Revenue for the December 2009 quarter of $729.6 million exceeded the high end of the guidance provided on October 27, 2009 of $720.0 million and increased 8.2% from the September 2009 quarter and 9.4% from the prior December quarter.

The increase in local currency was 5.5% sequentially and 4.6% compared with the prior year. Orders for the quarter were $777.9 million, an increase of 7.4% from the September 2009 quarter and 38.4% from the prior year. Positive book-to-bill ratios were reported in all primary markets. Net income for the December 2009 quarter was $19.3 million or $0.11 per share, compared with a net loss of $11.6 million or $0.07 per share, for the September 2009 quarter. The effective tax rate for the quarter was 44.6%, reflecting the tax cost of a planned repatriation of dividends from certain non-US subsidiaries in fiscal 2010. Gross profit margin improved to 29.1%, compared with 28.4% in the September 2009 quarter due to higher revenue and cost reductions. The Company now estimates a total pretax charge through the end of fiscal year 2010 of approximately $300 million, compared with a previous estimate of $280 million. The increase is due to additional non-cash impairments for buildings resulting from continued weakness in the commercial real estate markets and additional specific actions that have been initiated as the company approached the end of its restructuring program. As a result, the expected cost savings from the restructuring program has increased by $5 million to approximately $205 million on an annual basis. The Company estimates revenue in a range of $715 to $735 million for the March 2010 quarter. At this level of revenue, the Company expects earnings per share in a range of $0.18 to $0.22, assuming an effective tax rate of 30.0%. Included in these estimates is a pretax restructuring charge of approximately $10.0 million or $0.04 per share after-tax.

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March 28 2024 10:16 am V22.4.20-2
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