EXHIBIT 99.1
Contact: Neil Lefort
Vice President, Investor Relations
(630) 527-4344
MOLEX WILL EXPAND ERNST & YOUNG LLP AUDIT ENGAGEMENT
Fiscal 2005 results to be released on September 8, 2005
Analyst Meeting to be held on September 13, 2005
Updates Outlook for Fourth Quarter of Fiscal 2005
FY06 Outlook to be released July 26, 2005 with a conference call at 4:00PM CDT
Lisle, Ill., USA -- July 19, 2005 -- Molex Incorporated
(NASDAQ: MOLX and MOLXA), a global electronic components company,
today announced that the Audit Committee of its Board of Directors
has requested Ernst & Young LLP to audit its financial statements
for the fiscal years ended June 30, 2003 and June 30, 2004. In
December 2004, the Company announced that it had retained Ernst &
Young to replace its former auditor, Deloitte & Touche LLP, and
audit Molex's financial statements for the fiscal year ended June
30, 2005.
In connection with its fiscal year end processes, Molex
discussed engaging its former auditor to perform the procedures
considered necessary in order to deliver a written consent to use
the previously audited financial statements for fiscal 2003 and
fiscal 2004. The former auditor advised Molex that it did not
wish to accept this engagement, but did not withdraw its
previously issued audit reports with respect to such financial
statements. Molex's Audit Committee has requested Ernst & Young to
audit the fiscal 2003 and fiscal 2004 financial statements in
addition to performing an audit of Molex's fiscal 2005 financial
statements. Ernst & Young is in the process of assessing its
independence with respect to fiscal years 2003 and 2004, and has
stated that it will accept this engagement if it determines that
it is independent with respect to those years.
Due to the need to expand the scope of Ernst & Young's audit
engagement from one fiscal year to three fiscal years, Molex
expects that its fiscal 2005 results will be released on September
8, 2005 and a webcast conference call will be held promptly
following the release. Molex expects to file its Form 10-K,
including audited financial statements, on or before the September
13, 2005 filing deadline.
June Quarter FY05 Outlook
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Molex also announced that, based on a preliminary review of
operating results for the fourth fiscal quarter ended June 30,
2005, it remains comfortable with the guidance for operating
results as provided in its April 25, 2005 press release.
Further, the total restructuring and building impairment charge
previously estimated to be in a range of $25 to $30 million pre-
tax is now expected to be in the range of $30 to $35 million pre-
tax. In addition, during the fourth fiscal quarter the Company
completed its annual review of goodwill, intangible assets and
investments in subsidiaries. As a result of that review, Molex
now expects to record a non-cash goodwill impairment charge of
approximately $23 million in the fourth fiscal quarter of 2005.
FY06 Outlook and Analyst meeting
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Molex expects to issue a press release at the close of the
market on July 26, 2005 in which the Company will provide its
initial outlook for the full fiscal year ending June 30, 2006.
Following this release, the Company will host a conference call on
July 26, 2005, at 4:00 PM CDT. The Company currently anticipates
that its annual meeting with analysts, previously scheduled for
July 26, 2005, will be held on September 13, 2005 in Chicago. In
addition, the Company plans to schedule meetings during the same
week in New York and San Francisco at which a condensed version of
the September 13th presentation will be provided.
* * * *
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. Forward-looking statements are based on currently
available information and include, among others, the discussion
under "June Quarter FY05 Outlook" and "FY06 Outlook and Analyst
meeting" above and statements regarding the Company's anticipated
release of financial information and the timing and results of the
audits of the Company's financial statements. These risks and
uncertainties include those associated with the timing of the
Company's release of earnings as well as the timing and results of
the audits of the Company's financial statements, and those
associated with the operation of our business, the challenges
attendant to plant closings and restructurings, including the
difficulty of predicting plant closing and relocation costs, the
difficulty of commencing or increasing production at existing
facilities, and the reactions of customers, governmental units,
employees and other groups. 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.
Molex's Annual Report, as well as news releases and other
supplementary financial data is available by accessing Molex's
website at www.molex.com.
Molex Incorporated is a 67-year-old manufacturer of
electronic components, including electrical and fiber optic
interconnection products and systems, switches and integrated
products in 55 plants in 19 countries throughout the world.
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Editor's note: Molex is traded on the NASDAQ National Market
System in the United States and on the London Stock Exchange. The
Company's voting common stock (MOLX) is included in the S&P 500
Index and the NASDAQ 100.