2005 - Molex

More documents

Recommendations

Info

to identify areas in which we can exert greater expense control. Our goal is to manage our spending more efficiently and bring it to a level that is both com- petitive and sustainable. Hand-in-hand with these profitability initiatives is our stock buyback program, which gives us an additional avenue for enhancing shareholder return. The Board of Directors has authorized the company to invest our cash assets in repurchasing up to $250 million of Molex shares on a discretionary basis during the period ending December 31, 2006. R E G I O N A L R E V I E W Americas. Sales in the region grew a modest 2% for the fiscal year, reflecting the accelerated movement offshore of original equipment and contract manu- facturers. Although most of that business remained within Molex, it contributed to sales in other regions and depressed Americas results. We offset the revenue loss with an increase in sales through distribution, growth in our industrial and high-performance products and the stron- gest new product lineup in two decades. Sales in the connector group, our largest business, were essentially flat, but profitability improved due to new products and efforts to keep process costs down. Integrated product sales once again grew faster than connector sales. The biggest boost came from high- performance cables and fiber optics products for data, storage, testing and medical applications, as well as for the Molex 2005 Annual Report T O O U R S H A R E H O L D E R S 6 telecommunications market, which has finally stabilized. Automotive suffered a fifth year of revenue decline, but we believe that is about to change. We anticipate sales will grow approximately 8% in fiscal 2006, as we begin to reap the benefits of work- ing with Singapore, Japan and China on major programs for global customers. Our cost structure will improve signifi- cantly from closing our Detroit plant and redistributing manufacturing to optimize our other U.S. factories and integrated products capabilities in Mexico. At the same time, by expanding our development centers in Detroit and at Lisle head- quarters, we will keep design activity near our customers. We have identified and begun work- ing with new customers and industries with significant long-term potential, including medical electronics, commer- cial military and value-added resellers that manufacture and sell domestically. We anticipate an increase in revenue in 2006, propelled by growth in our core markets, greater traction in new applications and several automotive programs that are moving into production. As our manufacturing costs come down, we expect profitability to improve. Far East North. (Japan and Korea) Rev- enue increased 5% in U.S. dollars and held steady in local currencies. A robust business environment in Japan, a recov- ering economy in Korea and a steady flow of new products stimulated sales.
29 Development Groups Design Centers 24 Locations 5 16 Countries
Page 3 and 4: Molex 2005 Annual Report T O O U R
Page 5 and 6: Sales by Industry 27% Telecommunica
Page 7: these reasons, over the past few ye
Page 11 and 12: that keep pace with the ongoing mig
Page 13 and 14: Sales by Region Americas 27.5% Far
Page 15 and 16: L E A D E R S H I P R O U N D T A B
Page 17 and 18: Molex Molex 2005 2005 Annual Annual
Page 19 and 20: Molex 2005 Annual Report L E A D E
Page 27: Fred A. Krehbiel (4)* is Co-Chairma
Page 30 and 31: Molex 2005 Annual Report T R A N S
Page 42 and 43: TABLE OF CONTENTS Page Part I Item
Page 44 and 45: Markets and Products below: The app
Page 46 and 47: The Company believes that its succe
Page 48 and 49: the technology industry to help dri
Page 50 and 51: Many of Molex’s worldwide manufac
Page 52 and 53: Item 2. Properties Molex owns and l
Page 54 and 55: The following table contains inform
Page 56 and 57: Item 7. Management’s Discussion a
Page 58 and 59:
The Company anticipates that its gr
Page 60 and 61:
Pension Plans The costs and obligat
Page 62 and 63:
Results of Operations Year Ended Ju
Page 64 and 65:
opportunities with its Molex counte
Page 66 and 67:
Goodwill and Other Asset Impairment
Page 68 and 69:
Far East South Region - Singapore,
Page 70 and 71:
Financing Activities Cash was used
Page 72 and 73:
existing and future competitors, wh
Page 74 and 75:
offsets, as compared with offsets t
Page 76 and 77:
Molex Incorporated Consolidated Bal
Page 78 and 79:
Molex Incorporated Consolidated Sta
Page 80 and 81:
1. Organization and Basis of Presen
Page 82 and 83:
Revenue Recognition Revenue is real
Page 84 and 85:
fiscal 2005 or 2006. The Company di
Page 86 and 87:
Year ended June 30, 2005 The aggreg
Page 88 and 89:
Year ended June 30, 2003 As a resul
Page 90 and 91:
sold into the structured cabling ma
Page 92 and 93:
The components of net deferred tax
Page 94 and 95:
Benefit Obligations and Plan Assets
Page 96 and 97:
The following provides a reconcilia
Page 98 and 99:
certain events. Upon such conversio
Page 100 and 101:
The option price per share for cert
Page 102 and 103:
Corporate and Other assets include
Page 104 and 105:
REPORT OF INDEPENDENT REGISTERED PU
Page 106 and 107:
Item 9. Changes in and Disagreement
Page 108 and 109:
absolute assurance that misstatemen
Page 110 and 111:
Molex Incorporated Schedule II - Va
Page 112 and 113:
10.14 Molex Cash Merit Bonus Plan (
Page 114 and 115:
74 Exhibit 31.1 CERTIFICATION PURSU
Page 116:
CERTIFICATION PURSUANT TO 18 U.S.C.
show all

2005 - Molex

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?