First quarter 2008 at Molex
Molex reported results for its 2008 first fiscal quarter. Revenue was $792.6 million, a decrease of 4.5% over the same period last fiscal year. Revenue increased $0.8 million over the June 2007 quarter. Net income was $53.3 million.
On June the Company announced a restructuring plan through the end of fiscal year 2009, which includes total estimated pretax charges of $100 to $125 million, and when fully completed estimated annualized pretax savings of $75 to $100 million. The plan includes headcount reductions, realignment of manufacturing capacity and certain plant closures, which should result in lower operating costs and improved return on invested capital. The restructuring actions to date include a reduction of 540 employees primarily in North America and Europe. A manufacturing plant in Ireland and an engineering center in Germany are being closed. In addition, distribution centers in China and Japan were consolidated, while four manufacturing plants in China were combined into two larger facilities. Also, in connection with the integration of Woodhead, the closure of a facility in Wales was announced.