UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 22, 2005
________________________________________________
Date of Report (Date of earliest event reported)
Molex Incorporated
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(Exact name of registrant as specified in its charter)
Delaware 0-7491 36-2369491
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(State or other (Commission (IRS Employer
jurisdiction File Number) Identification
of incorporation) No.)
2222 Wellington Court, Lisle, Illinois 60532
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(Address of principal executive offices) (Zip Code)
(630) 969-4550
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(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.05. Costs Associated with Exit or Disposal Activities.
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As part of its ongoing business practices, Molex evaluates
its operations in accordance with business needs. On April 22,
2005, the Company adopted a plan to realign part of its
manufacturing capacity in order to reduce costs and better optimize
its plant utilization and to reduce SG&A. As disclosed in the
Company's April 25, 2005 press release, Molex expects to take an
estimated pretax charge of $25 to $30 million in the fiscal 2005
fourth quarter and an additional estimated pretax charge of $20 to
$30 million during fiscal 2006. The expected pre-tax charge for
the fiscal 2005 fourth quarter includes estimated cash expenditures
of approximately $27 million, including estimated severance and
other employee-related costs of approximately $19 million and
estimated equipment relocation and other facility transition costs
of approximately $8 million. The expected pre-tax charge for
fiscal 2006 includes estimated cash expenditures of approximately
$23 million, including estimated severance and other employee-
related costs of approximately $13 million and estimated equipment
relocation and other facility transition costs of approximately $10
million. The actual timing of the facility closures and related
headcount reductions and the resulting charges and cash
expenditures will be dependent upon a number of factors including
the Company's efforts to achieve a phased and efficient transfer of
production.
The facility closures involve the Company's operations in the
Americas and Europe Regions. In the Americas, the Company will close
an industrial manufacturing facility in New England and cease
manufacturing in its Detroit area automotive facility. The automotive
development center also located in the Detroit area will continue in
operation. Production from these facilities will be transferred to
existing plants within the region. In Europe, the Company will
close manufacturing facilities in Ireland and Portugal, and reduce
the size of a development center in Germany. Production from these
manufacturing facilities will be transferred to existing plants
within the region. Included in the charge is an amount to expense
certain product related tooling in the Far East South and Europe Regions.
Also included in the charge will be costs to reduce the
Company's selling, general and administrative costs in the
Americas, Europe, and at the corporate office. The Company
estimates that it will reduce headcount by approximately 1,200
people partially offset by additions at the facilities where
production is being transferred. Total savings from the
restructuring have not yet been finalized; and the Company expects
to provide additional information in the future.
Statements in this Form 8-K that are not historical, including
statements regarding the Company's cost reduction plans and the
anticipated costs and timing of such plans, are forward-looking and
are subject to various risks and uncertainties that could cause
actual results to vary materially from those stated. These risks
and uncertainties include the effectiveness, timing and cost of the
Company's plant realignment efforts and other general economic and market
factors. Other risks and uncertainties are set forth in Molex's
Form 10-K for the year ended June 30, 2004, and other documents
filed with the Securities and Exchange Commission. Molex disclaims
any obligation 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.
SIGNATURES
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.
MOLEX INCORPORATED
Date: April 28, 2005 By: /s/ Louis A. Hecht
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Louis A. Hecht
Corporate Secretary and General
Counsel