-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RVXavOI0Y/Wz4gDDndRX9zf31uxL8GB8EHfYmRooi9P5/uf1PKQ9EBLLR8iHdG/7 2/iQ4IZO3gVwR3gb6Aq9Kg== 0000067472-04-000090.txt : 20040728 0000067472-04-000090.hdr.sgml : 20040728 20040727164726 ACCESSION NUMBER: 0000067472-04-000090 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040630 ITEM INFORMATION: FILED AS OF DATE: 20040727 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOLEX INC CENTRAL INDEX KEY: 0000067472 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC CONNECTORS [3678] IRS NUMBER: 362369491 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-07491 FILM NUMBER: 04933777 BUSINESS ADDRESS: STREET 1: 2222 WELLINGTON CT CITY: LISLE STATE: IL ZIP: 60532 BUSINESS PHONE: 6309694550 MAIL ADDRESS: STREET 1: 2222 WELLINGTON COURT CITY: LISLE STATE: IL ZIP: 60532 8-K 1 c8kq404pr.txt FY04 8-K FILING DATED JULY 27, 2004 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 27, 2004 MOLEX INCORPORATED (Exact name of registrant as specified in its charter) Delaware 0-7491 36-2369491 ___________________________ ____________________ ________________ (State or other jurisdiction (Commission file (IRS Employer of incorporation) number) identification No.) 2222 Wellington Court, Lisle, Illinois 60532 _____________________________________ ___________ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (630) 969-4550 1 Item 12. Disclosure of Results of Operations and Financial Condition. On July 27, 2004, Molex Incorporated (the "Company") issued a press release announcing its results of operations for the fiscal fourth quarter and year ended June 30, 2004. The press release is furnished as Exhibit 99 hereto and incorporated herein by reference. The information furnished under Item 12 of this Current Report on Form 8-K, including Exhibit 99, shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, as amended. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: July 27, 2004 MOLEX INCORPORATED ____________________ (Registrant) By: /s/ DIANE S. BULLOCK _______________________ Diane S. Bullock Vice President, Treasurer and Chief Financial Officer 2 Exhibit Index Exhibit No. Description 99 Press release issued by Molex Incorporated on July 27, 2004 (furnished pursuant to Item 12) 3 EX-99 2 pr72704.txt PRESS RELEASE DATED JULY 27, 2004 EXHIBIT 99 Contact: Neil Lefort Vice President, Investor Relations (630) 527-4344 MOLEX REPORTS RECORD REVENUE FOR 2004 FISCAL FOURTH QUARTER; REVENUE UP 33 PERCENT; EARNINGS PER SHARE UP 88 PERCENT Lisle, IL, USA - July 27, 2004 -- Molex Incorporated (NASDAQ:MOLX and MOLXA), a global electronic components company, today reported record revenue results for its fiscal fourth quarter, and a 22 percent revenue increase for its full fiscal year ended June 30, 2004. The Company also provided initial guidance for its fiscal year ending June 30, 2005. Fourth Quarter Results - ---------------------- Revenue was $631.8 million, an increase of $155.8 million, or 32.7 percent, over the prior year quarter. Revenue in local currencies increased 27.7 percent, as currency translation increased net revenue by approximately $22.0 million over the prior year quarter. Net income was $57.2 million for the fourth quarter, an increase of $55.2 million over the prior year quarter. The prior year quarter included a $28.6 million after-tax charge for restructuring costs and investment write-off. Net income increased 87 percent compared with the prior year quarter results excluding this charge. Earnings per share for the fourth quarter were $.30, compared with $.01 in the prior year. Excluding last year's charge, earnings per share increased 87.5 percent compared with the prior year quarter. Currency translation increased income for the fourth quarter by $2.6 million. Revenue in the Far East South region was $176.2 million, an increase of 46 percent, primarily driven by demand from the digital consumer, PC, and mobile phone markets, serving both local and multinational customers. In the Far East North region (Japan and Korea), revenue was $129.2 million, an increase of 20 percent in dollars and 10 percent in local currencies, driven by demand for advanced digital home entertainment products and high end mobile phones, all with substantial connector content. Revenue also continues to improve in the industrial market, especially for semiconductor inspection equipment. In the Americas, revenue of $185.5 million increased 18 percent, the strongest increase in several years, due to a broad improvement in most segments. In Europe, revenue of $125.9 million increased 60 percent, also the strongest gain in several years. In this region, the recently completed acquisition of Connecteurs Cinch added revenue of $20.5 million and foreign currency translation, led by the strong euro, helped increase revenue by $7.7 million. Gross profit margin for the fourth quarter further increased to 36.0 percent versus 32.6 percent in the prior year period, primarily due to higher manufacturing volumes. Gross profit margin also increased sequentially from the March quarter result of 35.5 percent. Pretax return on sales for the fourth quarter improved significantly to 12.2 percent compared with 8.6 percent in the prior year quarter, before last year's charge. Pretax return on sales also increased sequentially from the March quarter result of 11.0 percent. The effective tax rate for the quarter was 25.4 percent, as the Company adjusted the full fiscal year tax rate to 26.5 percent versus 27.0 percent recorded in the first nine months of fiscal 2004. Net return on sales for the fourth quarter increased to 9.1 percent, the highest quarterly result in several years. Commenting on the fourth quarter, Joe King, Vice-Chairman and Chief Executive Officer, said, "We were very pleased to achieve a new record in revenue and what we believe were gains in market share. Profitability has improved sequentially this fiscal year, with the 9.1 percent net return on sales in the fourth quarter significantly above the 6.5 percent net return in the first fiscal quarter and the 8.0 percent recorded in the most recent fiscal third quarter." Full Fiscal Year Results - ------------------------ Revenue for the twelve months ended June 30, 2004 was $2.247 billion compared with $1.843 billion in the prior fiscal year period, a 21.9 percent increase. Net income of $176.0 million increased $91.1 million compared with last year's net income of $84.9 million. Last year's net income included the after-tax charge of $28.6 million recorded in the fourth fiscal quarter. Net income increased $62.6 million, or 55.2 percent compared with last year's net income of $113.4 excluding this charge. Earnings per share were $0.92 compared with $0.44 reported for the prior fiscal year. The Company's order backlog on June 30, 2004 stood at $332.6 million, a 79.2 percent increase compared with $185.6 million a year ago. Without the impact of changes to currency rates, the current backlog would have been $323.8 million, an increase in local currency of 74.4 percent. The order backlog increased 26.4 percent sequentially from the third quarter. New orders for the fourth quarter of $680.3 million increased 12.2 percent sequentially from the third quarter and 45.0 percent compared with last year's fourth quarter. Included in new orders for the fourth quarter were $20.0 million due to the acquisition completed on April 2, 2004, and an estimated $25.0 million due to customers advancing orders in anticipation of an announced price increase. Without these two factors, new orders would have increased 35 percent from last year's fourth quarter and 5 percent sequentially from the third quarter. Research and Development Expenditures and Capital Spending - ---------------------------------------------------------- Research and development expenditures for the fourth quarter were $34.8 million compared with $27.9 million for the same period last year. Research and development expenditures for the twelve-month period were $119.0 million versus $117.0 million for the same period last year. Capital expenditures for the fourth quarter were $55.5 million versus $43.6 million for the same period last year. Capital expenditures for the twelve-month period were $189.7 million versus $171.2 million for the same period last year. Depreciation expense for the fourth quarter was $57.6 million versus $54.3 million for the same period last year. FY05 and September Quarter Outlook - ---------------------------------- Commenting on the '05 fiscal year, Joe King, Vice Chairman and Chief Executive Officer said, "We believe that the outlook in the majority of our global markets remains strong. While inventory in the supply chain has increased in recent months, this increase has occurred from historically low levels which we believe is reasonable, given the improvement in end markets. Looking forward, while demand beyond the short term remains difficult to predict, we are pleased with the level of orders in the June quarter and, certainly, the higher order backlog provides us with a tailwind heading into the new fiscal year. During fiscal year 2005, our management team will continue to focus on delivering additional profit leverage and increasing market share. Molex's financial position remains strong and is increasingly mentioned by our customers as a source of significant competitive advantage." Based on these conditions, the Company expects that revenues for the full fiscal year ending June 30, 2005 will be in a range of $2,600 - $2,675 million, an increase of 16 - 19 percent over the full fiscal year ended June 30, 2004. These projections include revenue of $75 million related to the recently completed acquisition of Connecteurs Cinch. Based on these revenue expectations, net income is expected to grow faster than revenues due to leverage from the higher volume and a modestly lower level of price erosion. Earnings per share are expected to be in the range of $1.24 - $1.34, an increase of 35 - 45 percent over the $0.92 reported for fiscal year 2004. These earnings per share expectations assume a tax rate of 27.5 percent for the 2005 fiscal year compared with 26.5 percent for the 2004 fiscal year. The Company estimates capital spending in fiscal year 2005 to be in a range of $215 - $225 million, primarily directed to revenue producing assets and expansion in lower cost locations. For the current September quarter, which is traditionally the slowest due to seasonality, the Company estimates revenues in a range of $620 - - $640 million and earnings per share in a range of $.26 - $29. This would represent strong growth of 25 - 27 percent in revenues and 50 - 70 percent in earnings per share, over last year's September quarter. Stock Buyback Actions - --------------------- During the quarter, the Company repurchased 795,000 shares of MOLXA common stock at a total cost of $20.0 million. For the twelve months ended June 30, 2004, the Company has repurchased 2,740,000 shares for a total cost of $70.2 million. These purchases were completed under a $100 million Board authorization for the full fiscal year ended June 30, 2004. 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. Certain of these risks and uncertainties are set forth in Molex's 10-K and other documents filed with the Securities and Exchange Commission and include economic conditions in various regions, product and price competition and foreign currency exchange rate changes. Molex does not undertake to revise these forward-looking statements or to provide any updates regarding information contained in this release resulting from new information, future events or otherwise. The Company's Annual Report, as well as news releases and other supplementary financial data is available by accessing the Company's website at www.molex.com. Certain reclassifications have been made to the financial statements for the year ended June 30, 2003 to conform to the fiscal 2004 classifications. Note: Molex will hold an Analysts Meeting on Wednesday, July 28, 2004. The location will be at the Wyndham Northwest Chicago, 400 Park Boulevard, Itasca, IL. The meeting will begin at 10:00 a.m. central and is scheduled to end at approximately 3:30 p.m. central. Molex Incorporated is a 66-year-old manufacturer of electronic, electrical and fiber optic interconnection products and systems; switches; value-added assemblies; and application tooling. Based in Lisle, Illinois, USA, the Company operates 54 manufacturing facilities in 19 countries and employs approximately 21,225 people. Editor's note: Molex is traded on the NASDAQ National Market System in the United States, on the London Stock Exchange and (MOLX) is included in the S&P 500 Index and the NASDAQ 100. MOLEX INCORPORATED FOURTH QUARTER AND YEAR ENDED JUNE 30, 2004 and 2003 (In thousands except per share) CONDENSED CONSOLIDATED STATEMENTS OF INCOME ------------------------------------------- Quarter Ended Year Ended June 30 June 30 ------------------ ---------------------- 2004 2003 2004 2003 -------- -------- ---------- ---------- Unaudited Unaudited Audited Net Revenue $631,817 $476,066 $2,246,715 $1,843,098 Gross Profit 227,594 155,259 779,960 609,741 Selling and Administrative Expense 151,944 150,237 549,151 501,279 Interest Income, Net (498) (1,609) (3,748) (8,166) Other (Income)/Expense (707) 5,991 (5,335) 6,586 -------- -------- ---------- ---------- Income Before Income Taxes 76,855 640 239,892 110,042 Taxes and Minority Interest 19,654 (1,324) 63,942 25,124 -------- -------- ---------- ---------- Net Income $ 57,201 $ 1,964 $ 175,950 $ 84,918 ======== ======== ========== ========== As a Percentage of Revenues 9.1% 0.4% 7.8% 4.6% Earnings Per Share $0.30 $0.01 $0.92 $0.44 Weighted Average Shares Outstanding 191,315 192,322 192,186 193,229 CONDENSED CONSOLIDATED BALANCE SHEET ------------------------------------ June 30, June 30, 2004 2003 ---------- ---------- Unaudited Audited ASSETS Cash and Cash Equivalents $ 234,431 $ 178,976 Marketable Securities 104,223 171,235 Receivables 529,630 396,780 Inventories 265,344 179,256 Other Current Assets 35,016 35,866 ---------- ---------- Total Current Assets 1,168,644 962,113 Property, Plant & Equipment (net) 1,022,378 1,007,948 Other Assets 381,324 359,809 ---------- ---------- $2,572,346 $2,329,870 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $ 428,464 $ 356,148 Accrued Pension and Postretirement Benefits 52,151 58,430 Long-Term Debt and Capital Leases 14,039 13,137 Minority Interest 1,211 753 Other Non-Current Liabilities 10,487 4,834 Shareholders' Equity 2,065,994 1,896,568 ---------- ---------- $2,572,346 $2,329,870 ========== ========== MOLEX INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended ----------------------- June 30, June 30, 2004 2003 ---------- ---------- Unaudited Audited CASH AND CASH EQUIVALENTS, Beginning of Period $178,976 $213,477 OPERATING ACTIVITIES: Net income 175,950 84,918 Add (deduct) non-cash items included in net income - Depreciation and amortization 228,480 228,730 Deferred income taxes (7,698) (31,412) Amortization of deferred unearned compensation 13,848 12,807 Other charges to net income 8,970 33,553 Changes in assets and liabilities, excluding effects of acquisitions and foreign currency adjustments - Accounts receivable (93,909) 836 Inventories (72,159) (6,734) Accounts payable 40,555 (11,730) Other assets and liabilities (2,006) (6,096) --------- --------- CASH PROVIDED FROM OPERATING ACTIVITIES 292,031 304,872 INVESTING ACTIVITIES: Capital expenditures (189,724) (171,193) (Increase) decrease in marketable securities 67,012 (71,387) Acquisition of business (37,920) - Other investing activities 2,274 (6,645) --------- --------- CASH USED FOR INVESTING ACTIVITIES (158,358) (249,225) FINANCING ACTIVITIES: Net decrease in debt (8,891) (1,710) Cash dividends paid (19,022) (19,214) Purchase of treasury stock (70,215) (74,997) Other financing activities 12,020 3,590 --------- --------- CASH USED FOR FINANCING ACTIVITIES (86,108) (92,331) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 7,890 2,183 --------- --------- CASH AND CASH EQUIVALENTS, End of Period $234,431 $178,976 ========= ========= -----END PRIVACY-ENHANCED MESSAGE-----