UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the Quarterly Period Ended March 31, 2009
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number 0-7491
 MOLEX INCORPORATED
  Delaware
    
    36-2369491(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 2222 Wellington Court, Lisle, Illinois 60532
 þ o
  Large accelerated filer þ
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
 o o
 o þ
  Common Stock
    
    
    95,551,858Class A Common Stock
    
    
    77,630,150Class B Common Stock
    
    
    94,255




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##### 



Molex Incorporated
 INDEX
   PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Consolidated Balance Sheets as of
March 31, 2009 and June 30, 2008
    
    
    3Condensed Consolidated Statements of Income for the
three and nine months ended March 31, 2009 and 2008
    
    
    4Condensed Consolidated Statements of Cash Flows for the
nine months ended March 31, 2009 and 2008
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations
    
    
    14Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    26Item 4. Controls and Procedures
    
    
    26PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    27Item 1A. Risk Factors
    
    
    27Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 3. Defaults Upon Senior Securities
    
    
    27Item 4. Submission of Matters to a Vote of Security Holders
    
    
    28Item 5. Other Information
    
    
    28Item 6. Exhibits
    
    
    28SIGNATURES
    
    
    29Section 302 Certification of Chief Executive OfficerSection 302 Certification of Chief Financial OfficerSection 906 Certification of Chief Executive OfficerSection 906 Certification of Chief Financial Officer
  2




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##### 



PART I
 
 Item 1. Financial Statements
 Molex Incorporated
 
 Condensed Consolidated Balance Sheets
  Mar. 31,
    
    
    June 30,2009
    
    
    2008(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    457,548
    
    
    $
    475,507Marketable securities
    
    
    48,384
    
    
    
    34,298Accounts receivable, less allowances of $30,336 and $40,243 respectively
    
    
    444,617
    
    
    
    740,827Inventories
    
    
    360,776
    
    
    
    458,295Other current assets
    
    
    110,795
    
    
    
    74,033Total current assets
    
    
    1,422,120
    
    
    
    1,782,960Property, plant and equipment, net
    
    
    1,081,469
    
    
    
    1,172,395Goodwill
    
    
    294,359
    
    
    
    373,623Other assets
    
    
    275,193
    
    
    
    270,559Total assets
    
    $
    3,073,141
    
    
    $
    3,599,537LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    182,363
    
    
    $
    350,413Accrued expenses
    
    
    205,426
    
    
    
    154,015Current portion of long-term debt and short-term borrowings
    
    
    280,897
    
    
    
    66,687Other current liabilities
    
    
    4,285
    
    
    
    78,323Total current liabilities
    
    
    672,971
    
    
    
    649,438Other non-current liabilities
    
    
    23,884
    
    
    
    21,346Accrued pension and postretirement benefits
    
    
    98,376
    
    
    
    105,574Long-term debt
    
    
    5,167
    
    
    
    146,333Total liabilities
    
    
    800,398
    
    
    
    922,691
  Stockholders equity:Common stock
    
    
    11,130
    
    
    
    11,107Paid-in capital
    
    
    592,675
    
    
    
    569,046Retained earnings
    
    
    2,602,472
    
    
    
    2,785,099Treasury stock
    
    
    (1,088,258
    )
    
    
    (1,009,021
    )Accumulated other comprehensive income
    
    
    154,724
    
    
    
    320,615Total stockholders equity
    
    
    2,272,743
    
    
    
    2,676,846Total liabilities and stockholders equity
    
    $
    3,073,141
    
    
    $
    3,599,537
  3




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##### 



Molex Incorporated
 
 Condensed Consolidated Statements of Income
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Net revenue
    
    $
    505,539
    
    
    $
    822,285
    
    
    $
    2,011,252
    
    
    $
    2,456,455Cost of sales
    
    
    412,143
    
    
    
    567,824
    
    
    
    1,492,312
    
    
    
    1,712,729Gross profit
    
    
    93,396
    
    
    
    254,461
    
    
    
    518,940
    
    
    
    743,726Selling, general and administrative
    
    
    139,071
    
    
    
    167,639
    
    
    
    450,034
    
    
    
    493,973Restructuring costs and asset impairments
    
    
    44,344
    
    
    
    6,399
    
    
    
    105,904
    
    
    
    16,286Goodwill impairment
    
    
    
    
    
    
    
    
    
    
    93,140
    
    
    
    Total operating expenses
    
    
    183,415
    
    
    
    174,038
    
    
    
    649,078
    
    
    
    510,259Income (loss) from operations
    
    
    (90,019
    )
    
    
    80,423
    
    
    
    (130,138
    )
    
    
    233,467Interest income, net
    
    
    251
    
    
    
    2,044
    
    
    
    2,287
    
    
    
    6,964Other income
    
    
    3,259
    
    
    
    4,462
    
    
    
    24,252
    
    
    
    7,241Total other income
    
    
    3,510
    
    
    
    6,506
    
    
    
    26,539
    
    
    
    14,205Income (loss) before income taxes
    
    
    (86,509
    )
    
    
    86,929
    
    
    
    (103,599
    )
    
    
    247,672Income taxes
    
    
    (27,909
    )
    
    
    36,623
    
    
    
    (2,052
    )
    
    
    84,846Net (loss) income
    
    $
    (58,600
    )
    
    $
    50,306
    
    
    $
    (101,547
    )
    
    $
    162,826Earnings (loss) per share:Basic
    
    $
    (0.34
    )
    
    $
    0.28
    
    
    $
    (0.58
    )
    
    $
    0.90Diluted
    
    $
    (0.34
    )
    
    $
    0.28
    
    
    $
    (0.58
    )
    
    $
    0.89Dividends declared per share
    
    $
    0.1525
    
    
    $
    0.1125
    
    
    $
    0.4575
    
    
    $
    0.3375Average common shares outstanding:Basic
    
    
    173,228
    
    
    
    179,385
    
    
    
    174,985
    
    
    
    181,260Diluted
    
    
    173,228
    
    
    
    180,086
    
    
    
    174,985
    
    
    
    182,156
  4




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##### 



Molex Incorporated
 
 Condensed Consolidated Statements of Cash Flows
   Nine Months EndedMarch 31,2009
    
    
    2008Operating activities:Net (loss) income
    
    $
    (101,547
    )
    
    $
    162,826Add non-cash items included in net (loss) income:Depreciation and amortization
    
    
    190,085
    
    
    
    184,675Share-based compensation
    
    
    19,393
    
    
    
    18,539Goodwill impairment
    
    
    93,140
    
    
    
    Other non-cash items
    
    
    9,392
    
    
    
    3,568Changes in assets and liabilities:Accounts receivable
    
    
    282,082
    
    
    
    12,604Inventories
    
    
    93,916
    
    
    
    (22,540
    )Accounts payable
    
    
    (167,781
    )
    
    
    (6,179
    )Other current assets and liabilities
    
    
    (50,148
    )
    
    
    8,915Other assets and liabilities
    
    
    (56,947
    )
    
    
    (9,551
    )Cash provided from operating activities
    
    
    311,585
    
    
    
    352,857Investing activities:Capital expenditures
    
    
    (127,688
    )
    
    
    (163,440
    )Proceeds from sales of property, plant and equipment
    
    
    7,561
    
    
    
    11,417Proceeds from sales or maturities of marketable securities
    
    
    11,694
    
    
    
    843,493Purchases of marketable securities
    
    
    (33,399
    )
    
    
    (798,921
    )Acquisitions
    
    
    (73,447
    )
    
    
    (42,503
    )Other investing activities
    
    
    655
    
    
    
    (9,733
    )Cash used for investing activities
    
    
    (214,624
    )
    
    
    (159,687
    )Financing activities:Proceeds from revolving credit facility
    
    
    115,000
    
    
    
    65,000Payments on revolving credit facility
    
    
    (105,000
    )
    
    
    Net change in long-term debt
    
    
    47,300
    
    
    
    (1,705
    )Cash dividends paid
    
    
    (73,222
    )
    
    
    (54,557
    )Exercise of stock options
    
    
    1,233
    
    
    
    8,534Purchase of treasury stock
    
    
    (76,342
    )
    
    
    (166,199
    )Other financing activities
    
    
    (870
    )
    
    
    (900
    )Cash used for financing activities
    
    
    (91,901
    )
    
    
    (149,827
    )Effect of exchange rate changes on cash
    
    
    (23,019
    )
    
    
    32,150Net increase (decrease) in cash and cash equivalents
    
    
    (17,959
    )
    
    
    75,493Cash and cash equivalents, beginning of period
    
    
    475,507
    
    
    
    378,361Cash and cash equivalents, end of period
    
    $
    457,548
    
    
    $
    453,854
  5




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##### 



Molex Incorporated
 
 Notes to Condensed Consolidated Financial Statements
 1. Basis of Presentation
    2. Restructuring Costs and Asset Impairments
   6




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##### 



Trans-
    
    
    Custom &
    
    
    CorporateConnector
    
    
    portation
    
    
    Electrical
    
    
    and Other
    
    
    TotalCumulative costs at June 30, 2008
    
    $
    15,466
    
    
    $
    8,474
    
    
    $
    15,543
    
    
    $
    28,633
    
    
    $
    68,116Net restructuring costs during
the first quarter
    
    
    280
    
    
    
    14,991
    
    
    
    3,779
    
    
    
    2,728
    
    
    
    21,778Cumulative costs at Sept. 30, 2008
    
    $
    15,746
    
    
    $
    23,465
    
    
    $
    19,322
    
    
    $
    31,361
    
    
    $
    89,894Net restructuring costs during
the second quarter
    
    
    12,075
    
    
    
    14,766
    
    
    
    6,324
    
    
    
    6,617
    
    
    
    39,782Cumulative costs at Dec. 31, 2008
    
    $
    27,821
    
    
    $
    38,231
    
    
    $
    25,646
    
    
    $
    37,978
    
    
    $
    129,676Net restructuring costs during
the third quarter
    
    
    17,557
    
    
    
    13,021
    
    
    
    7,452
    
    
    
    6,314
    
    
    
    44,344Cumulative costs at Mar. 31, 2009
    
    $
    45,378
    
    
    $
    51,252
    
    
    $
    33,098
    
    
    $
    44,292
    
    
    $
    174,020
  Balance at June 30, 2008
    
    $
    19,842Cash payments
    
    
    (5,321
    )Charges to expense
    
    
    19,106Non-cash related costs
    
    
    (2,978
    )Balance at September 30, 2008
    
    $
    30,649Cash payments
    
    
    (6,713
    )Charges to expense
    
    
    35,362Non-cash related costs
    
    
    327Balance at December 31, 2008
    
    $
    59,625Cash payments
    
    
    (23,311
    )Charges to expense
    
    
    28,946Non-cash related costs
    
    
    (999
    )Balance at March 31, 2009
    
    $
    64,261
  3. Goodwill Impairment
   7




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##### 



4. Acquisitions
  5. Earnings (Loss) Per Share
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Basic average common shares outstanding
    
    
    173,228
    
    
    
    179,385
    
    
    
    174,985
    
    
    
    181,260Effect of dilutive stock options
    
    
    
    
    
    
    701
    
    
    
    
    
    
    
    896Diluted average common shares outstanding
    
    
    173,228
    
    
    
    180,086
    
    
    
    174,985
    
    
    
    182,156
  6. Comprehensive Income (Loss)
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Net (loss) income
    
    $
    (58,600
    )
    
    $
    50,306
    
    
    $
    (101,547
    )
    
    $
    162,826Translation adjustments
    
    
    (67,650
    )
    
    
    88,758
    
    
    
    (159,939
    )
    
    
    172,559Unrealized investment gain (loss)
    
    
    5,564
    
    
    
    1,942
    
    
    
    (5,952
    )
    
    
    8,427Total comprehensive (loss) income
    
    $
    (120,686
    )
    
    $
    141,006
    
    
    $
    (267,438
    )
    
    $
    343,812
 8




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##### 



7. Inventories
  Mar. 31,
    
    
    June 30,2009
    
    
    2008Raw materials
    
    $
    57,402
    
    
    $
    81,407Work in process
    
    
    118,466
    
    
    
    144,683Finished goods
    
    
    184,908
    
    
    
    232,205Total inventories
    
    $
    360,776
    
    
    $
    458,295
 8. Investments
  9. Pensions and Other Postretirement Benefits
   9




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##### 



Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Service cost
    
    $
    2,066
    
    
    $
    2,346
    
    
    $
    6,198
    
    
    $
    7,037Interest cost
    
    
    2,064
    
    
    
    2,148
    
    
    
    6,192
    
    
    
    6,443Expected return on plan assets
    
    
    (2,180
    )
    
    
    (2,533
    )
    
    
    (6,540
    )
    
    
    (7,598
    )Amortization of prior service cost
    
    
    11
    
    
    
    53
    
    
    
    33
    
    
    
    159Recognized actuarial losses
    
    
    62
    
    
    
    85
    
    
    
    186
    
    
    
    255Amortization of transition obligation
    
    
    106
    
    
    
    10
    
    
    
    318
    
    
    
    31Curtailment adjustment
    
    
    1,151
    
    
    
    
    
    
    
    1,151
    
    
    
    (5,444
    )Benefit cost
    
    $
    3,280
    
    
    $
    2,109
    
    
    $
    7,538
    
    
    $
    883
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2009
    
    
    2008
    
    
    2009
    
    
    2008Service cost
    
    $
    611
    
    
    $
    767
    
    
    $
    1,833
    
    
    $
    2,291Interest cost
    
    
    796
    
    
    
    815
    
    
    
    2,388
    
    
    
    2,434Amortization of prior service cost
    
    
    (160
    )
    
    
    (175
    )
    
    
    (480
    )
    
    
    (523
    )Recognized actuarial losses
    
    
    157
    
    
    
    330
    
    
    
    471
    
    
    
    986Curtailment adjustment
    
    
    299
    
    
    
    
    
    
    
    (3,701
    )
    
    
    Benefit cost
    
    $
    1,703
    
    
    $
    1,737
    
    
    $
    511
    
    
    $
    5,188
 10. Debt
  11. Income Taxes
   10




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##### 



12. Fair Value Measurements
   
    
    Level 1: Observable inputs such as quoted prices for identical assets or
liabilities in active markets.
    
    Level 2: Observable inputs other than quoted prices substantiated by market data
and observable, either directly or indirectly for the asset or liability. This
includes quoted prices for similar assets or liabilities in active markets.
    
    Level 3: Unobservable inputs that are supported by little or no market activity
and that are significant to the fair value of the assets and liabilities.
  Quoted Pricesin Active
    
    
    SignificantTotal
    
    
    Markets for
    
    
    Other
    
    
    SignificantMeasured
    
    
    Identical
    
    
    Observable
    
    
    Unobservableat Fair
    
    
    Assets
    
    
    Inputs
    
    
    InputsValue
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Available for sale securities
    
    $
    4,821
    
    
    $
    4,821
    
    
    $
    
    
    
    $
    Derivative financial instruments, net
    
    
    1,054
    
    
    
    
    
    
    
    1,054
    
    
    
    Total
    
    $
    5,875
    
    
    $
    4,821
    
    
    $
    1,054
    
    
    $
    
  13. New Accounting Pronouncements
   11




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##### 



14. Segments and Related Information
  
    
    The Connector segment designs and manufactures products for high-speed,
high-density, high signal-integrity applications as well as fine-pitch, low-profile
connectors for the consumer and commercial markets.
    
    The Transportation segment designs and manufactures products that withstand
environments such as heat, cold, dust, dirt, liquid and vibration for automotive
and other transportation applications.
    
    The Custom & Electrical segment designs and manufactures integrated and
customizable electronic components across all industries that provide original,
differentiated solutions to customer requirements. It also leverages expertise in
the use of signal, power and interface technology in industrial automation and
other harsh environment applications.
 12




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##### 



Trans-
    
    Custom &
    
    CorporateConnector
    
    portation
    
    Electrical
    
    & Other
    
    TotalFor the three months ended:March 31, 2009:Revenues from external customers
    
    $
    289,329
    
    
    $
    60,505
    
    
    $
    155,178
    
    
    $
    527
    
    
    $
    505,539Income (loss) from operations
    
    
    (13,850
    )
    
    
    (37,627
    )
    
    
    586
    
    
    
    (39,128
    )
    
    
    (90,019
    )Depreciation & amortization
    
    
    42,522
    
    
    
    8,888
    
    
    
    8,111
    
    
    
    4,215
    
    
    
    63,736Capital expenditures
    
    
    17,657
    
    
    
    6,739
    
    
    
    2,985
    
    
    
    3,671
    
    
    
    31,052March 31, 2008:Revenues from external customers
    
    $
    457,542
    
    
    $
    127,410
    
    
    $
    234,246
    
    
    $
    3,087
    
    
    $
    822,285Income (loss) from operations
    
    
    68,826
    
    
    
    3,297
    
    
    
    19,867
    
    
    
    (11,567
    )
    
    
    80,423Depreciation & amortization
    
    
    41,128
    
    
    
    9,613
    
    
    
    8,454
    
    
    
    4,123
    
    
    
    63,318Capital expenditures
    
    
    32,853
    
    
    
    13,419
    
    
    
    2,754
    
    
    
    11,997
    
    
    
    61,023For the nine months ended:March 31, 2009:Revenues from external customers
    
    $
    1,141,807
    
    
    $
    240,743
    
    
    $
    626,706
    
    
    $
    1,996
    
    
    $
    2,011,252Income (loss) from operations
    
    
    74,758
    
    
    
    (187,120
    )
    
    
    36,749
    
    
    
    (54,525
    )
    
    
    (130,138
    )Depreciation & amortization
    
    
    124,550
    
    
    
    27,307
    
    
    
    25,260
    
    
    
    12,968
    
    
    
    190,085Capital expenditures
    
    
    72,381
    
    
    
    26,693
    
    
    
    15,613
    
    
    
    13,001
    
    
    
    127,688March 31, 2008:Revenues from external customers
    
    $
    1,400,085
    
    
    $
    370,389
    
    
    $
    678,411
    
    
    $
    7,570
    
    
    $
    2,456,455Income (loss) from operations
    
    
    226,418
    
    
    
    7,824
    
    
    
    54,001
    
    
    
    (54,776
    )
    
    
    233,467Depreciation & amortization
    
    
    118,236
    
    
    
    29,004
    
    
    
    26,119
    
    
    
    11,316
    
    
    
    184,675Capital expenditures
    
    
    91,977
    
    
    
    30,033
    
    
    
    11,717
    
    
    
    29,713
    
    
    
    163,440
   Trans-
    
    
    Custom &
    
    
    CorporateConnector
    
    
    portation
    
    
    Electrical
    
    
    & Other
    
    
    TotalMarch 31, 2009
    
    $
    1,013,287
    
    
    $
    310,887
    
    
    $
    393,788
    
    
    $
    168,900
    
    
    $
    1,886,862June 30, 2008
    
    
    1,293,342
    
    
    
    413,233
    
    
    
    500,197
    
    
    
    164,745
    
    
    
    2,371,517
  Mar. 31,
    
    
    June 30,2009
    
    
    2008Segment net assets
    
    $
    1,886,862
    
    
    $
    2,371,517Other current assets
    
    
    616,727
    
    
    
    583,838Non current assets
    
    
    569,552
    
    
    
    644,182Consolidated total assets
    
    $
    3,073,141
    
    
    $
    3,599,537
 13




---



##### 



Molex Incorporated
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
   Overview
   
    
    The Connector segment manufactures and sells products for high-speed,
high-density, high signal-integrity applications as well as fine-pitch, low-profile
connectors for the consumer and commercial markets.
    
    The Transportation segment designs and manufactures products that withstand
environments such as heat, cold, dust, dirt, liquid and vibration for automotive
and other transportation applications.
    
    The Custom & Electrical segment manufactures and sells integrated and
customizable electronic components across all industries that provide original,
differentiated solutions to customer requirements. It also leverages expertise in
the use of signal, power and interface technology in industrial automation and
other harsh environment applications.
   14




---



##### 



Critical Accounting Policies and Estimates
   15




---



##### 



Results of Operations
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueNet revenue
    
    $
    505,539
    
    
    
    100.0
    %
    
    $
    822,285
    
    
    
    100.0
    %Cost of sales
    
    
    412,143
    
    
    
    81.5
    %
    
    
    567,824
    
    
    
    69.1
    %Gross profit
    
    
    93,396
    
    
    
    18.5
    %
    
    
    254,461
    
    
    
    30.9
    %Selling, general & administrative
    
    
    139,071
    
    
    
    27.5
    %
    
    
    167,639
    
    
    
    20.4
    %Restructuring costs and asset impairments
    
    
    44,344
    
    
    
    8.8
    %
    
    
    6,399
    
    
    
    0.7
    %Income (loss) from operations
    
    
    (90,019
    )
    
    
    (17.8
    )%
    
    
    80,423
    
    
    
    9.8
    %Other income, net
    
    
    3,510
    
    
    
    0.7
    %
    
    
    6,506
    
    
    
    0.8
    %Income (loss) before income taxes
    
    
    (86,509
    )
    
    
    (17.1
    )%
    
    
    86,929
    
    
    
    10.6
    %Income taxes
    
    
    (27,909
    )
    
    
    (5.5
    )%
    
    
    36,623
    
    
    
    4.5
    %Net (loss) income
    
    $
    (58,600
    )
    
    
    (11.6
    )%
    
    $
    50,306
    
    
    
    6.1
    %
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueNet revenue
    
    $
    2,011,252
    
    
    
    100.0
    %
    
    $
    2,456,455
    
    
    
    100.0
    %Cost of sales
    
    
    1,492,312
    
    
    
    74.2
    %
    
    
    1,712,729
    
    
    
    69.7
    %Gross profit
    
    
    518,940
    
    
    
    25.8
    %
    
    
    743,726
    
    
    
    30.3
    %Selling, general & administrative
    
    
    450,034
    
    
    
    22.4
    %
    
    
    493,973
    
    
    
    20.1
    %Restructuring costs and asset impairments
    
    
    199,044
    
    
    
    9.9
    %
    
    
    16,286
    
    
    
    0.7
    %Income (loss) from operations
    
    
    (130,138
    )
    
    
    (6.5
    )%
    
    
    233,467
    
    
    
    9.5
    %Other income, net
    
    
    26,539
    
    
    
    1.3
    %
    
    
    14,205
    
    
    
    0.6
    %Income (loss) before income taxes
    
    
    (103,599
    )
    
    
    (5.2
    )%
    
    
    247,672
    
    
    
    10.1
    %Income taxes
    
    
    (2,052
    )
    
    
    (0.1
    )%
    
    
    84,846
    
    
    
    3.5
    %Net (loss) income
    
    $
    (101,547
    )
    
    
    (5.1
    )%
    
    $
    162,826
    
    
    
    6.6
    %
 Net Revenue
  Comparable
    
    SequentialQuarter
    
    QuarterConsumer
    
    
    (27.3
    )%
    
    
    (24.7
    )%Telecommunications
    
    
    (38.5
    )
    
    
    (27.2
    )Automotive
    
    
    (53.7
    )
    
    
    (23.4
    )Data
    
    
    (34.4
    )
    
    
    (23.6
    )Industrial
    
    
    (39.7
    )
    
    
    (20.2
    )
 16




---



##### 




    
    Consumer market revenue decreased against both the comparable quarter and the
sequential quarter in home entertainment and home appliance products. The declines in
both the comparable and sequential quarters were partially offset by our customers
release of lower end computer products.
    
    Telecommunications market revenue decreased against both the comparable quarter and
the sequential quarter due to lower demand for mobile products and supply chain
inventory reductions in fiscal 2009. We had strong revenue growth during the first
quarter of fiscal 2009 and the second half of fiscal 2008 in our antenna products for
mobile devices, but demand decreased significantly in the second and third quarters of
fiscal 2009.
    
    Automotive market revenue declined against both the comparable quarter and the
sequential quarter due to a sharp decrease in demand related to the current economic
conditions. During fiscal 2008, the automotive market benefited from new products
reflecting higher electronic content in automobiles. The number of automobiles
manufactured by our customers continues to decrease as automotive manufacturing
companies continue to reduce inventories in the automotive supply chain.
    
    Data market revenue for the third quarter of fiscal 2009 decreased over the
comparable and sequential quarters due to a decrease in demand for storage networking
products, computers and peripherals.
    
    Industrial market revenue for fiscal 2009 decreased compared with fiscal 2008 due to
declines in residential and commercial construction, lower demand in the industrial
communications business worldwide, particularly in North America and Europe, and lower
demand for factory automation as the manufacturing sector contracts. The decreased
revenue compared to the comparable quarter was partially offset by increased demand for
production equipment.
  Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Americas
    
    
    27
    %
    
    
    27
    %
    
    
    27
    %
    
    
    28
    %Asia Pacific
    
    
    54
    
    
    
    52
    
    
    
    54
    
    
    
    52Europe
    
    
    19
    
    
    
    21
    
    
    
    19
    
    
    
    20Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2009
    
    
    Mar. 31, 2009Net revenue for prior year period
    
    $
    822,285
    
    
    $
    2,456,455Components of net revenue change:Organic net revenue decline
    
    
    (309,894
    )
    
    
    (491,171
    )Currency translation
    
    
    (11,977
    )
    
    
    33,148Acquisitions
    
    
    5,125
    
    
    
    12,820Total change in net revenue
from prior year period
    
    
    (316,746
    )
    
    
    (445,203
    )Net revenue for current year period
    
    $
    505,539
    
    
    $
    2,011,252Organic net revenue decline as a
percentage
of net revenue from prior year period
    
    
    (37.7
    )%
    
    
    (20.0
    )%
  17




---



##### 



Three Months Ended March 31, 2009
    
    
    Nine Months Ended March 31, 2009Local
    
    
    Currency
    
    
    Net
    
    
    Local
    
    
    Currency
    
    
    NetCurrency
    
    
    Translation
    
    
    Change
    
    
    Currency
    
    
    Translation
    
    
    ChangeAmericas
    
    $
    (83,586
    )
    
    $
    (1,225
    )
    
    $
    (84,811
    )
    
    $
    (117,653
    )
    
    $
    (1,903
    )
    
    $
    (119,556
    )Asia Pacific
    
    
    (153,727
    )
    
    
    1,850
    
    
    
    (151,877
    )
    
    
    (240,193
    )
    
    
    34,648
    
    
    
    (205,545
    )Europe
    
    
    (66,165
    )
    
    
    (12,602
    )
    
    
    (78,767
    )
    
    
    (125,625
    )
    
    
    403
    
    
    
    (125,222
    )Corporate & other
    
    
    (1,291
    )
    
    
    
    
    
    
    (1,291
    )
    
    
    5,120
    
    
    
    
    
    
    
    5,120Net change
    
    $
    (304,769
    )
    
    $
    (11,977
    )
    
    $
    (316,746
    )
    
    $
    (478,351
    )
    
    $
    33,148
    
    
    $
    (445,203
    )
  Three Months
    
    Nine MonthsEnded
    
    EndedMar. 31, 2009
    
    Mar. 31, 2009Americas
    
    
    (37.4
    )%
    
    
    (17.5
    )%Asia Pacific
    
    
    (36.5
    )
    
    
    (18.7
    )Europe
    
    
    (37.5
    )
    
    
    (25.3
    )Total
    
    
    (37.1
    )%
    
    
    (19.5
    )%
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueConnector
    
    $
    289,329
    
    
    
    57.2
    %
    
    $
    457,542
    
    
    
    55.6
    %Transportation
    
    
    60,505
    
    
    
    12.0
    
    
    
    127,410
    
    
    
    15.5Custom & Electrical
    
    
    155,178
    
    
    
    30.7
    
    
    
    234,246
    
    
    
    28.5Corporate & Other
    
    
    527
    
    
    
    0.1
    
    
    
    3,087
    
    
    
    0.4Total
    
    $
    505,539
    
    
    
    100.0
    %
    
    $
    822,285
    
    
    
    100.0
    %
  Percentage
    
    
    
    
    
    
    Percentage2009
    
    
    of Revenue
    
    
    2008
    
    
    of RevenueConnector
    
    $
    1,141,807
    
    
    
    56.8
    %
    
    $
    1,400,085
    
    
    
    57.0
    %Transportation
    
    
    240,743
    
    
    
    12.0
    
    
    
    370,389
    
    
    
    15.1Custom & Electrical
    
    
    626,706
    
    
    
    31.1
    
    
    
    678,411
    
    
    
    27.6Corporate & Other
    
    
    1,996
    
    
    
    0.1
    
    
    
    7,570
    
    
    
    0.3Total
    
    $
    2,011,252
    
    
    
    100.0
    %
    
    $
    2,456,455
    
    
    
    100.0
    %
 18




---



##### 



Gross Profit
  Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Gross profit
    
    $
    93,396
    
    
    $
    254,461
    
    
    $
    518,940
    
    
    $
    743,726Gross margin
    
    
    18.5
    %
    
    
    30.9
    %
    
    
    25.8
    %
    
    
    30.3
    %
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Copper (price per pound)
    
    $
    1.56
    
    
    $
    3.19
    
    
    $
    2.96
    
    
    $
    3.38Gold (price per troy ounce)
    
    
    908.00
    
    
    
    925.00
    
    
    
    854.30
    
    
    
    797.07
   Three Months
    
    Nine MonthsEnded
    
    EndedMar. 31, 2009
    
    Mar. 31, 2009Price erosion
    
    $
    (20,284
    )
    
    $
    (73,976
    )Currency translation
    
    
    (4,159
    )
    
    
    10,924Currency transaction
    
    
    (7,222
    )
    
    
    (12,057
    )
  19




---



##### 



Operating Expenses
  Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Selling, general and administrative
    
    $
    139,071
    
    
    $
    167,639
    
    
    $
    450,034
    
    
    $
    493,973Selling, general and administrative
as a percentage of revenue
    
    
    27.5
    %
    
    
    20.4
    %
    
    
    22.4
    %
    
    
    20.1
    %Restructuring costs and asset impairments
    
    $
    44,344
    
    
    $
    6,399
    
    
    $
    105,904
    
    
    $
    16,286Goodwill impairment
    
    $
    
    
    
    $
    
    
    
    $
    93,140
    
    
    $
    
     Other Income
  20




---



##### 



Effective Tax Rate
  Backlog
  Segments
 Connector
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2009
    
    
    Mar. 31, 2009Net revenue for prior year period
    
    $
    457,542
    
    
    $
    1,400,085Components of net revenue change:Organic net revenue decline
    
    
    (171,755
    )
    
    
    (294,698
    )Currency translation
    
    
    (41
    )
    
    
    32,837Acquisitions
    
    
    3,583
    
    
    
    3,583Total change in net revenue from prior year period
    
    
    (168,213
    )
    
    
    (258,278
    )Net revenue for current year period
    
    $
    289,329
    
    
    $
    1,141,807Organic net revenue decline as a percentage of
net revenue for prior year period
    
    
    (37.5
    )%
    
    
    (21.0
    )%
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Income from operations
    
    $
    (13,850
    )
    
    $
    68,826
    
    
    $
    74,758
    
    
    $
    226,418Operating margin
    
    
    (4.8
    )%
    
    
    15.0
    %
    
    
    6.5
    %
    
    
    16.2
    %
  21




---



##### 



Transportation
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2009
    
    
    Mar. 31, 2009Net revenue for prior year period
    
    $
    127,410
    
    
    $
    370,389Components of net revenue change:Organic net revenue decline
    
    
    (63,274
    )
    
    
    (131,216
    )Currency translation
    
    
    (3,631
    )
    
    
    1,570Total change in net revenue from prior year period
    
    
    (66,905
    )
    
    
    (129,646
    )Net revenue for current year period
    
    $
    60,505
    
    
    $
    240,743Organic net revenue decline as a percentage of
net revenue for prior year period
    
    
    (49.6
    )%
    
    
    (35.4
    )%
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Income from operations
    
    $
    (37,627
    )
    
    $
    3,297
    
    
    $
    (187,120
    )
    
    $
    7,824Operating margin
    
    
    (62.2
    )%
    
    
    2.6
    %
    
    
    (77.7
    )%
    
    
    2.1
    %
  22




---



##### 



Custom & Electrical
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2009
    
    
    Mar. 31, 2009Net revenue for prior year period
    
    $
    234,246
    
    
    $
    678,411Components of net revenue change:Organic net revenue decline
    
    
    (72,326
    )
    
    
    (59,630
    )Currency translation
    
    
    (8,284
    )
    
    
    (1,312
    )Acquisitions
    
    
    1,542
    
    
    
    9,237Total change in net revenue from prior year period
    
    
    (79,068
    )
    
    
    (51,705
    )Net revenue for current year period
    
    $
    155,178
    
    
    $
    626,706Organic net revenue decline as a percentage of
net revenue for prior year period
    
    
    (30.9
    )%
    
    
    (8.8
    )%
   Three Months Ended
    
    Nine Months EndedMarch 31,
    
    March 31,2009
    
    2008
    
    2009
    
    2008Income from operations
    
    $
    586
    
    
    $
    19,867
    
    
    $
    36,749
    
    
    $
    54,001Operating margin
    
    
    0.4
    %
    
    
    8.5
    %
    
    
    5.9
    %
    
    
    8.0
    %
  Non-GAAP Financial Measures
   Financial Condition and Liquidity
  23




---



##### 



Cash Flows
   Nine Months EndedMarch 31,2009
    
    
    2008Cash provided from operating activities
    
    $
    311,585
    
    
    $
    352,857Cash used for investing activities
    
    
    (214,624
    )
    
    
    (159,687
    )Cash used for financing activities
    
    
    (91,901
    )
    
    
    (149,827
    )Effect of exchange rate changes on cash
    
    
    (23,019
    )
    
    
    32,150Net (decrease) increase in cash
    
    $
    (17,959
    )
    
    $
    75,493
 Operating Activities
  Investing Activities
  24




---



##### 



Financing Activities
    Contractual Obligations and Commercial Commitments
  Cautionary Statement Regarding Forward-Looking Information
   25




---



##### 



Item 3. Quantitative and Qualitative Disclosures About Market Risk
          
 Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
   26




---



##### 



Internal Control Over Financial Reporting
  
 PART II
 
 Item 1. Legal Proceedings
  
 Item 1A. Risk Factors
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
  Total Numberof SharesTotal Number
    
    
    
    
    
    
    Purchased asof Shares
    
    
    Average Price
    
    
    Part of PubliclyPurchased*
    
    
    Paid per Share
    
    
    Announced PlanJanuary 1  January 31Common Stock
    
    
    3
    
    
    $
    12.25
    
    
    
    Class A Common Stock
    
    
    
    
    
    $
    
    
    
    
    February 1  February 28Common Stock
    
    
    62
    
    
    $
    11.81
    
    
    
    Class A Common Stock
    
    
    
    
    
    $
    
    
    
    
    March 1  March 31Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    
    
    
    $
    
    
    
    
    Total
    
    
    65
    
    
    $
    11.83
    
    
    
    
 
 *
    
    The shares purchased include exercises of employee stock options.  
 Item 3. Defaults Upon Senior Securities
  27




---



##### 



Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
 Number
    
    Description31
    
    Rule 13a-14(a)/15d-14(a) Certifications31.1 Section 302 certification by Chief Executive Officer31.2 Section 302 certification by Chief Financial Officer32
    
    Section 1350 Certifications32.1 Section 906 certification by Chief Executive Officer32.2 Section 906 certification by Chief Financial Officer
 28




---



##### 



SIGNATURES
  MOLEX INCORPORATED
 
(Registrant)Date: April 30, 2009
    
    /S/ DAVID D. JOHNSON

David D. JohnsonExecutive Vice President, Treasurer and 

Chief Financial Officer(Principal Financial Officer)
 29