##### Table of Contents



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, 2008
 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
(State or other jurisdiction of 
incorporation or organization)
    
    36-2369491
(I.R.S. Employer
Identification No.)
 2222 Wellington Court, Lisle, Illinois 60532
 
 þ o
 Rule 12b-2




|                              |  |                         |  |                                                                              |  |                                
|----------------------------- |  | ----------------------- |  | ---------------------------------------------------------------------------- |  | -------------------------------
|Large accelerated filer
    þ |  | Accelerated
    filer o |  | Non-accelerated
    filer o(Do not check if a smaller
    reporting company) |  | Smaller reporting
    company o

o þ




Common Stock
    
    
    98,606,672Class A Common Stock
    
    
    79,782,456Class B Common Stock
    
    
    94,255






1



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##### 



Molex Incorporated
 INDEX
  
 PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Consolidated Balance Sheets as of
March 31, 2008 and June 30, 2007
    
    
    3Condensed Consolidated Statements of Income for the
three and nine months ended March 31, 2008 and 2007
    
    
    4Condensed Consolidated Statements of Cash Flows for the
nine months ended March 31, 2008 and 2007
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    13Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    24Item 4. Controls and Procedures
    
    
    24PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    25Item 1A. Risk Factors
    
    
    25Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    25Item 6. Exhibits
    
    
    26SIGNATURES
    
    
    27Section 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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##### Table of Contents



PART I
 
 Item 1. Financial Statements
 Molex Incorporated
 
 Condensed Consolidated Balance Sheets
  March 31,
    
    
    June 30,2008
    
    
    2007(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    453,854
    
    
    $
    378,361Marketable securities
    
    
    38,361
    
    
    
    82,549Accounts receivable, less allowances of $40,970 and $31,064, respectively
    
    
    746,705
    
    
    
    685,666Inventories
    
    
    457,974
    
    
    
    392,680Other current assets
    
    
    57,766
    
    
    
    51,571Total current assets
    
    
    1,754,660
    
    
    
    1,590,827Property, plant and equipment, net
    
    
    1,191,337
    
    
    
    1,121,369Goodwill
    
    
    373,451
    
    
    
    334,791Other assets
    
    
    315,782
    
    
    
    269,121Total assets
    
    $
    3,635,230
    
    
    $
    3,316,108LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    309,634
    
    
    $
    279,847Accrued expenses
    
    
    210,162
    
    
    
    187,890Other current liabilities
    
    
    149,421
    
    
    
    63,214Total current liabilities
    
    
    669,217
    
    
    
    530,951Other non-current liabilities
    
    
    26,105
    
    
    
    25,612Accrued pension and postretirement benefits
    
    
    118,890
    
    
    
    108,693Long-term debt
    
    
    155,689
    
    
    
    127,821Total liabilities
    
    
    969,901
    
    
    
    793,077Commitments and contingenciesStockholders equity:Common stock
    
    
    11,077
    
    
    
    11,020Paid-in capital
    
    
    553,386
    
    
    
    520,037Retained earnings
    
    
    2,752,450
    
    
    
    2,650,470Treasury stock
    
    
    (973,968
    )
    
    
    (799,894
    )Accumulated other comprehensive income
    
    
    322,384
    
    
    
    141,398Total stockholders equity
    
    
    2,665,329
    
    
    
    2,523,031Total liabilities and stockholders equity
    
    $
    3,635,230
    
    
    $
    3,316,108
  3




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Molex Incorporated
 
 Condensed Consolidated Statements of Income
 
 Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Net revenue
    
    $
    822,285
    
    
    $
    807,014
    
    
    $
    2,456,455
    
    
    $
    2,474,026Cost of sales
    
    
    567,824
    
    
    
    556,026
    
    
    
    1,712,729
    
    
    
    1,695,120Gross profit
    
    
    254,461
    
    
    
    250,988
    
    
    
    743,726
    
    
    
    778,906Selling, general and administrative
    
    
    167,639
    
    
    
    162,471
    
    
    
    493,973
    
    
    
    496,463Restructuring costs and asset impairments
    
    
    6,399
    
    
    
    
    
    
    
    16,286
    
    
    
    Total operating expenses
    
    
    174,038
    
    
    
    162,471
    
    
    
    510,259
    
    
    
    496,463Income from operations
    
    
    80,423
    
    
    
    88,517
    
    
    
    233,467
    
    
    
    282,443Investment income
    
    
    4,462
    
    
    
    1,699
    
    
    
    7,241
    
    
    
    5,308Interest income, net
    
    
    2,044
    
    
    
    2,080
    
    
    
    6,964
    
    
    
    6,169Other income, net
    
    
    6,506
    
    
    
    3,779
    
    
    
    14,205
    
    
    
    11,477Income before income taxes
    
    
    86,929
    
    
    
    92,296
    
    
    
    247,672
    
    
    
    293,920Income taxes
    
    
    36,623
    
    
    
    26,978
    
    
    
    84,846
    
    
    
    85,874Net income
    
    $
    50,306
    
    
    $
    65,318
    
    
    $
    162,826
    
    
    $
    208,046Earnings per share:Basic
    
    $
    0.28
    
    
    $
    0.36
    
    
    $
    0.90
    
    
    $
    1.13Diluted
    
    $
    0.28
    
    
    $
    0.35
    
    
    $
    0.89
    
    
    $
    1.12Dividends declared per share
    
    $
    0.1125
    
    
    $
    0.0750
    
    
    $
    0.3375
    
    
    $
    0.2250Average common shares outstanding:Basic
    
    
    179,385
    
    
    
    183,985
    
    
    
    181,260
    
    
    
    183,922Diluted
    
    
    180,086
    
    
    
    185,271
    
    
    
    182,156
    
    
    
    185,591
  4




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Molex Incorporated
 
 Condensed Consolidated Statements of Cash Flows
 
 Nine Months EndedMarch 31,2008
    
    
    2007Operating activities:Net income
    
    $
    162,826
    
    
    $
    208,046Add non-cash items included in net income:Depreciation and amortization
    
    
    184,675
    
    
    
    177,138Share-based compensation
    
    
    18,539
    
    
    
    19,616Other non-cash items
    
    
    3,568
    
    
    
    4,763Changes in assets and liabilities:Accounts receivable
    
    
    12,604
    
    
    
    24,488Inventories
    
    
    (22,540
    )
    
    
    (29,724
    )Accounts payable
    
    
    (6,179
    )
    
    
    (56,396
    )Other current assets and liabilities
    
    
    8,915
    
    
    
    (64,444
    )Other assets and liabilities
    
    
    (9,551
    )
    
    
    (8,233
    )Cash provided from operating activities
    
    
    352,857
    
    
    
    275,254Investing activities:Capital expenditures
    
    
    (163,440
    )
    
    
    (219,435
    )Proceeds from sales of property, plant and equipment
    
    
    11,417
    
    
    
    3,891Proceeds from sales or maturities of marketable securities
    
    
    843,493
    
    
    
    4,449,264Purchases of marketable securities
    
    
    (798,921
    )
    
    
    (4,349,497
    )Acquisitions
    
    
    (42,503
    )
    
    
    (237,207
    )Other investing activities
    
    
    (9,733
    )
    
    
    3,575Cash used for investing activities
    
    
    (159,687
    )
    
    
    (349,409
    )Financing activities:Proceeds from revolving credit facility
    
    
    65,000
    
    
    
    44,000Payments on revolving credit facility
    
    
    
    
    
    
    (44,000
    )Proceeds from issuance of long-term debt
    
    
    
    
    
    
    131,045Payments of long-term debt
    
    
    (1,705
    )
    
    
    (26,570
    )Cash dividends paid
    
    
    (54,557
    )
    
    
    (41,382
    )Exercise of stock options
    
    
    8,534
    
    
    
    7,967Purchase of treasury stock
    
    
    (166,199
    )
    
    
    (19,967
    )Other financing activities
    
    
    (900
    )
    
    
    384Cash (used for) provided by financing activities
    
    
    (149,827
    )
    
    
    51,477Effect of exchange rate changes on cash
    
    
    32,150
    
    
    
    9,437Net increase (decrease) in cash and cash equivalents
    
    
    75,493
    
    
    
    (13,241
    )Cash and cash equivalents, beginning of period
    
    
    378,361
    
    
    
    332,815Cash and cash equivalents, end of period
    
    $
    453,854
    
    
    $
    319,574
  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, 2007
    
    $
    3,492
    
    
    $
    5,914
    
    
    $
    12,206
    
    
    $
    15,257
    
    
    $
    36,869Net restructuring costs during
the first quarter
    
    
    500
    
    
    
    528
    
    
    
    426
    
    
    
    1,175
    
    
    
    2,629Cumulative costs at Sept. 30, 2007
    
    $
    3,992
    
    
    $
    6,442
    
    
    $
    12,632
    
    
    $
    16,432
    
    
    $
    39,498Net restructuring costs during
the second quarter
    
    
    1,254
    
    
    
    954
    
    
    
    (1,107
    )
    
    
    6,157
    
    
    
    7,258Cumulative costs at Dec. 31, 2007
    
    $
    5,246
    
    
    $
    7,396
    
    
    $
    11,525
    
    
    $
    22,589
    
    
    $
    46,756Net restructuring costs during
the third quarter
    
    
    43
    
    
    
    1,002
    
    
    
    2,638
    
    
    
    2,716
    
    
    
    6,399Cumulative costs at March 31, 2008
    
    $
    5,289
    
    
    $
    8,398
    
    
    $
    14,163
    
    
    $
    25,305
    
    
    $
    53,155
  Balance at June 30, 2007
    
    $
    32,165Cash payments
    
    
    (8,059
    )Charges to expense
    
    
    3,295Non-cash related costs
    
    
    (323
    )Balance at September 30, 2007
    
    $
    27,078Cash payments
    
    
    (4,700
    )Charges to expense
    
    
    8,706Non-cash related costs
    
    
    (364
    )Balance at December 31, 2007
    
    $
    30,720Cash payments
    
    
    (10,500
    )Charges to expense
    
    
    5,257Non-cash related costs
    
    
    (462
    )Balance at March 31, 2008
    
    $
    25,015
  3. Acquisition
  7




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4. Earnings Per Share
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Basic average common shares outstanding
    
    
    179,385
    
    
    
    183,985
    
    
    
    181,260
    
    
    
    183,922Effect of dilutive stock options
    
    
    701
    
    
    
    1,286
    
    
    
    896
    
    
    
    1,669Diluted average common shares outstanding
    
    
    180,086
    
    
    
    185,271
    
    
    
    182,156
    
    
    
    185,591
 5. Comprehensive Income
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Net income
    
    $
    50,306
    
    
    $
    65,318
    
    
    $
    162,826
    
    
    $
    208,046Translation adjustments
    
    
    88,758
    
    
    
    21,851
    
    
    
    172,559
    
    
    
    47,750Unrealized investment gain
    
    
    1,942
    
    
    
    (535
    )
    
    
    8,427
    
    
    
    4,931Total comprehensive income
    
    $
    141,006
    
    
    $
    86,634
    
    
    $
    343,812
    
    
    $
    260,727
 6. Inventories
  March 31,
    
    
    June 30,2008
    
    
    2007Raw materials
    
    $
    71,503
    
    
    $
    85,320Work in process
    
    
    144,433
    
    
    
    107,394Finished goods
    
    
    242,038
    
    
    
    199,966Total inventories
    
    $
    457,974
    
    
    $
    392,680
 8




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7. Pensions and Other Postretirement Benefits
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Service cost
    
    $
    2,346
    
    
    $
    2,057
    
    
    $
    7,037
    
    
    $
    6,185Interest cost
    
    
    2,148
    
    
    
    1,700
    
    
    
    6,443
    
    
    
    5,082Expected return on plan assets
    
    
    (2,533
    )
    
    
    (1,723
    )
    
    
    (7,598
    )
    
    
    (5,137
    )Amortization of prior service cost
    
    
    53
    
    
    
    55
    
    
    
    159
    
    
    
    169Recognized actuarial losses
    
    
    85
    
    
    
    45
    
    
    
    255
    
    
    
    135Amortization of transition obligation
    
    
    10
    
    
    
    10
    
    
    
    31
    
    
    
    30Curtailment adjustment
    
    
    
    
    
    
    
    
    
    
    (5,444
    )
    
    
    Benefit cost
    
    $
    2,109
    
    
    $
    2,144
    
    
    $
    883
    
    
    $
    6,464
   Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Service cost
    
    $
    767
    
    
    $
    587
    
    
    $
    2,291
    
    
    $
    1,740Interest cost
    
    
    815
    
    
    
    662
    
    
    
    2,434
    
    
    
    1,963Amortization of prior service cost
    
    
    (175
    )
    
    
    (170
    )
    
    
    (523
    )
    
    
    (504
    )Recognized actuarial losses
    
    
    330
    
    
    
    278
    
    
    
    986
    
    
    
    823Benefit cost
    
    $
    1,737
    
    
    $
    1,357
    
    
    $
    5,188
    
    
    $
    4,022
 8. Long-Term Debt
  9. Income Taxes
  9




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.
    10. New Accounting Pronouncements
    10




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11. 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.
  Trans-
    
    
    Custom &
    
    
    CorporateConnector
    
    
    portation
    
    
    Electrical
    
    
    & Other
    
    
    TotalFor the three months ended:March 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
    
    
    
    61,023March 31, 2007:Revenues from external customers
    
    $
    458,678
    
    
    $
    125,685
    
    
    $
    219,239
    
    
    $
    3,412
    
    
    $
    807,014Income (loss) from operations
    
    
    85,646
    
    
    
    27
    
    
    
    13,698
    
    
    
    (10,854
    )
    
    
    88,517Depreciation & amortization
    
    
    36,974
    
    
    
    9,699
    
    
    
    8,918
    
    
    
    3,851
    
    
    
    59,442Capital expenditures
    
    
    39,531
    
    
    
    13,078
    
    
    
    6,075
    
    
    
    4,945
    
    
    
    63,629For the nine months ended:March 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
    
    
    
    163,440March 31, 2007:Revenues from external customers
    
    $
    1,441,829
    
    
    $
    344,366
    
    
    $
    673,790
    
    
    $
    14,041
    
    
    $
    2,474,026Income (loss) from operations
    
    
    290,441
    
    
    
    877
    
    
    
    46,722
    
    
    
    (55,597
    )
    
    
    282,443Depreciation & amortization
    
    
    107,278
    
    
    
    29,186
    
    
    
    28,266
    
    
    
    12,408
    
    
    
    177,138Capital expenditures
    
    
    136,927
    
    
    
    41,855
    
    
    
    25,705
    
    
    
    14,948
    
    
    
    219,435
  11




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Trans-
    
    
    Custom &
    
    
    CorporateConnector
    
    
    portation
    
    
    Electrical
    
    
    & Other
    
    
    TotalMarch 31, 2008
    
    $
    1,320,211
    
    
    $
    410,797
    
    
    $
    494,573
    
    
    $
    170,435
    
    
    $
    2,396,016June 30, 2007
    
    
    1,167,163
    
    
    
    407,034
    
    
    
    454,730
    
    
    
    170,788
    
    
    
    2,199,715
  March 31,
    
    
    June 30,2008
    
    
    2007Segment net assets
    
    $
    2,396,016
    
    
    $
    2,199,715Other current assets
    
    
    549,981
    
    
    
    512,481Non current assets
    
    
    689,233
    
    
    
    603,912Consolidated total assets
    
    $
    3,635,230
    
    
    $
    3,316,108
  12




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##### Table of Contents



Molex Incorporated
 
 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
   Overview
   
    
    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.
   13




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Critical Accounting Policies and Estimates
   Income Taxes
  14




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Results of Operations
  Percentage
    
    
    
    
    
    
    Percentage2008
    
    
    of Revenue
    
    
    2007
    
    
    of RevenueNet revenue
    
    $
    822,285
    
    
    
    100.0
    %
    
    $
    807,014
    
    
    
    100.0
    %Cost of sales
    
    
    567,824
    
    
    
    69.1
    %
    
    
    556,026
    
    
    
    68.9
    %Gross profit
    
    
    254,461
    
    
    
    30.9
    %
    
    
    250,988
    
    
    
    31.1
    %Selling, general & administrative
    
    
    167,639
    
    
    
    20.4
    %
    
    
    162,471
    
    
    
    20.1
    %Restructuring costs and asset impairments
    
    
    6,399
    
    
    
    0.7
    %
    
    
    
    
    
    
    Income from operations
    
    
    80,423
    
    
    
    9.8
    %
    
    
    88,517
    
    
    
    11.0
    %Other income, net
    
    
    6,506
    
    
    
    0.8
    %
    
    
    3,779
    
    
    
    0.5
    %Income before income taxes
    
    
    86,929
    
    
    
    10.6
    %
    
    
    92,296
    
    
    
    11.5
    %Income taxes
    
    
    36,623
    
    
    
    4.5
    %
    
    
    26,978
    
    
    
    3.4
    %Net income
    
    $
    50,306
    
    
    
    6.1
    %
    
    $
    65,318
    
    
    
    8.1
    %
  Percentage
    
    
    
    
    
    
    Percentage2008
    
    
    of Revenue
    
    
    2007
    
    
    of RevenueNet revenue
    
    $
    2,456,455
    
    
    
    100.0
    %
    
    $
    2,474,026
    
    
    
    100.0
    %Cost of sales
    
    
    1,712,729
    
    
    
    69.7
    %
    
    
    1,695,120
    
    
    
    68.5
    %Gross profit
    
    
    743,726
    
    
    
    30.3
    %
    
    
    778,906
    
    
    
    31.5
    %Selling, general & administrative
    
    
    493,973
    
    
    
    20.1
    %
    
    
    496,463
    
    
    
    20.1
    %Restructuring costs and asset impairments
    
    
    16,286
    
    
    
    0.7
    %
    
    
    
    
    
    
    Income from operations
    
    
    233,467
    
    
    
    9.5
    %
    
    
    282,443
    
    
    
    11.4
    %Other income, net
    
    
    14,205
    
    
    
    0.6
    %
    
    
    11,477
    
    
    
    0.5
    %Income before income taxes
    
    
    247,672
    
    
    
    10.1
    %
    
    
    293,920
    
    
    
    11.9
    %Income taxes
    
    
    84,846
    
    
    
    3.5
    %
    
    
    85,874
    
    
    
    3.5
    %Net income
    
    $
    162,826
    
    
    
    6.6
    %
    
    $
    208,046
    
    
    
    8.4
    %
 Net Revenue
  Comparable
    
    
    SequentialQuarter
    
    
    QuarterConsumer
    
    
    1.7
    %
    
    
    (7.6)
    %Telecommunications
    
    
    5.7
    
    
    
    0.4Automotive
    
    
    5.4
    
    
    
    3.6Data
    
    
    8.7
    
    
    
    (5.3
    )Industrial
    
    
    (18.4
    )
    
    
    (1.0
    )
  15




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##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Americas
    
    
    27
    %
    
    
    29
    %
    
    
    28
    %
    
    
    28
    %Northern Asia
    
    
    16
    
    
    
    15
    
    
    
    15
    
    
    
    15Southeast Asia and Australia
    
    
    36
    
    
    
    34
    
    
    
    37
    
    
    
    37Europe
    
    
    21
    
    
    
    22
    
    
    
    20
    
    
    
    20Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2008
    
    
    Mar. 31, 2008Net revenue for prior year period
    
    $
    807,014
    
    
    $
    2,474,026Components of net revenue increase (decrease):Organic net revenue decline
    
    
    (35,838
    )
    
    
    (122,018
    )Currency translation
    
    
    51,109
    
    
    
    104,447Total change in net revenue from prior year period
    
    
    15,271
    
    
    
    (17,571
    )Net revenue for current year period
    
    $
    822,285
    
    
    $
    2,456,455Organic net revenue decline as a percentage of
net revenue for prior year period
    
    
    (4.4
    )%
    
    
    (4.9
    )%
  Three Months Ended March 31, 2008
    
    
    Nine Months Ended March 31, 2008Local
    
    
    Currency
    
    
    Net
    
    
    Local
    
    
    Currency
    
    
    NetCurrency
    
    
    Translation
    
    
    Change
    
    
    Currency
    
    
    Translation
    
    
    ChangeAmericas
    
    $
    (12,433
    )
    
    $
    1,184
    
    
    $
    (11,249
    )
    
    $
    (36,416
    )
    
    $
    2,777
    
    
    $
    (33,639
    )Northern Asia
    
    
    (4,333
    )
    
    
    12,535
    
    
    
    8,202
    
    
    
    (1,431
    )
    
    
    13,243
    
    
    
    11,812Southeast Asia and Australia
    
    
    (1,619
    )
    
    
    16,346
    
    
    
    14,727
    
    
    
    (44,990
    )
    
    
    38,975
    
    
    
    (6,015
    )Europe
    
    
    (18,959
    )
    
    
    21,044
    
    
    
    2,085
    
    
    
    (42,914
    )
    
    
    49,452
    
    
    
    6,538Corporate & other
    
    
    1,506
    
    
    
    
    
    
    
    1,506
    
    
    
    3,733
    
    
    
    
    
    
    
    3,733Net change
    
    $
    (35,838
    )
    
    $
    51,109
    
    
    $
    15,271
    
    
    $
    (122,018
    )
    
    $
    104,447
    
    
    $
    (17,571
    )
 16




---



##### Table of Contents



Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMarch 31, 2008
    
    
    March 31, 2008Americas
    
    
    (5.3
    )%
    
    
    (5.2
    )%Northern Asia
    
    
    (3.6
    )
    
    
    (0.4
    )Southern Asia and Australia
    
    
    (0.6
    )
    
    
    (4.9
    )Europe
    
    
    (10.9
    )
    
    
    (8.8
    )Total
    
    
    (4.4
    )%
    
    
    (4.9
    )%
  Percentage
    
    
    
    
    
    
    Percentage2008
    
    
    of Revenue
    
    
    2007
    
    
    of RevenueConnector
    
    $
    457,542
    
    
    
    55.6
    %
    
    $
    458,678
    
    
    
    56.8
    %Transportation
    
    
    127,410
    
    
    
    15.5
    
    
    
    125,685
    
    
    
    15.6Custom & Electrical
    
    
    234,246
    
    
    
    28.5
    
    
    
    219,239
    
    
    
    27.2Corporate & Other
    
    
    3,087
    
    
    
    0.4
    
    
    
    3,412
    
    
    
    0.4Total
    
    $
    822,285
    
    
    
    100.0
    %
    
    $
    807,014
    
    
    
    100.0
    %
  Percentage
    
    
    
    
    
    
    Percentage2008
    
    
    of Revenue
    
    
    2007
    
    
    of RevenueConnector
    
    $
    1,400,085
    
    
    
    57.0
    %
    
    $
    1,441,829
    
    
    
    58.3
    %Transportation
    
    
    370,389
    
    
    
    15.1
    
    
    
    344,366
    
    
    
    13.9Custom & Electrical
    
    
    678,411
    
    
    
    27.6
    
    
    
    673,790
    
    
    
    27.2Corporate & Other
    
    
    7,570
    
    
    
    0.3
    
    
    
    14,041
    
    
    
    0.6Total
    
    $
    2,456,455
    
    
    
    100.0
    %
    
    $
    2,474,026
    
    
    
    100.0
    %
 Gross Profit
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Gross profit
    
    $
    254,461
    
    
    $
    250,988
    
    
    $
    743,726
    
    
    $
    778,906Gross margin
    
    
    30.9
    %
    
    
    31.1
    %
    
    
    30.3
    %
    
    
    31.5
    %
  17




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##### Table of Contents



Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2008
    
    
    Mar. 31, 2008Price erosion
    
    $
    (30,356
    )
    
    
    (108,676
    )Currency translation
    
    
    14,909
    
    
    
    30,524Currency transaction
    
    
    (6,417
    )
    
    
    (5,971
    )
  Operating Expenses
  Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Selling, general and administrative
    
    $
    167,639
    
    
    $
    162,471
    
    
    $
    493,973
    
    
    $
    496,463Selling, general and administrative
as a percentage of revenue
    
    
    20.4
    %
    
    
    20.1
    %
    
    
    20.1
    %
    
    
    20.1
    %Restructuring costs and asset impairments
    
    $
    6,399
    
    
    $
    
    
    
    
    $16,286
    
    
    $
    
    Effective Tax Rate
  18




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##### Table of Contents



Backlog
  Segments
 Connector
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2008
    
    
    Mar. 31, 2008Net revenue for prior year period
    
    $
    458,678
    
    
    $
    1,441,829Components of net revenue increase (decrease):Organic net revenue decline
    
    
    (31,163
    )
    
    
    (98,389
    )Currency translation
    
    
    30,027
    
    
    
    56,645Total change in net revenue from prior year period
    
    
    (1,136
    )
    
    
    (41,744
    )Net revenue for current year period
    
    $
    457,542
    
    
    $
    1,400,085Organic net revenue decline as a percentage of
net revenue for prior year period
    
    
    (6.8
    )%
    
    
    (6.8
    )%
   Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Income from operations
    
    $
    68,826
    
    
    $
    85,646
    
    
    $
    226,418
    
    
    $
    290,441Operating margin
    
    
    15.0
    %
    
    
    18.7
    %
    
    
    16.2
    %
    
    
    20.1
    %
  19




---



##### Table of Contents



Transportation
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2008
    
    
    Mar. 31, 2008Net revenue for prior year period
    
    $
    125,685
    
    
    $
    344,366Components of net revenue increase (decrease):Organic net revenue (decline) growth
    
    
    (6,879
    )
    
    
    7,857Currency translation
    
    
    8,604
    
    
    
    18,166Total change in net revenue from prior year period
    
    
    1,725
    
    
    
    26,023Net revenue for current year period
    
    $
    127,410
    
    
    $
    370,389Organic net revenue (decline) growth as a percentage of
net revenue for prior year period
    
    
    (5.5
    )%
    
    
    2.3
    %
   Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Income from operations
    
    $
    3,297
    
    
    $
    27
    
    
    $
    7,824
    
    
    $
    877Operating margin
    
    
    2.6
    %
    
    
    
    
    
    
    2.1
    %
    
    
    0.3
    %
  20




---



##### Table of Contents



Custom & Electrical
  Three Months
    
    
    Nine MonthsEnded
    
    
    EndedMar. 31, 2008
    
    
    Mar. 31, 2008Net revenue for prior year period
    
    $
    219,239
    
    
    $
    673,790Components of net revenue increase (decrease):Organic net revenue growth (decline)
    
    
    2,739
    
    
    
    (24,580
    )Currency translation
    
    
    12,268
    
    
    
    29,201Total change in net revenue from prior year period
    
    
    15,007
    
    
    
    4,621Net revenue for current year period
    
    $
    234,246
    
    
    $
    678,411Organic net revenue growth (decline) as a percentage of
net revenue for prior year period
    
    
    1.2
    %
    
    
    (3.6
    )%
   Three Months Ended
    
    
    Nine Months EndedMarch 31,
    
    
    March 31,2008
    
    
    2007
    
    
    2008
    
    
    2007Income from operations
    
    $
    19,867
    
    
    $
    13,698
    
    
    $
    54,001
    
    
    $
    46,722Operating margin
    
    
    8.5
    %
    
    
    6.2
    %
    
    
    8.0
    %
    
    
    6.9
    %
  Non-GAAP Financial Measures
   21




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##### Table of Contents



Financial Condition and Liquidity
  Cash Flows
  Nine Months EndedMarch 31,2008
    
    
    2007Cash provided from operating activities
    
    $
    352,857
    
    
    $
    275,254Cash used for investing activities
    
    
    (159,687
    )
    
    
    (349,409
    )Cash (used for) provided by financing activities
    
    
    (149,827
    )
    
    
    51,477Effect of exchange rate changes on cash
    
    
    32,150
    
    
    
    9,437Net increase (decrease) in cash
    
    $
    75,493
    
    
    $
    (13,241
    )
 Operating Activities
  Investing Activities
   22




---



##### Table of Contents



Financing Activities
    Contractual Obligations and Commercial Commitments
  Cautionary Statement Regarding Forward-Looking Information
   23




---



##### Table of Contents



Item 3. Quantitative and Qualitative Disclosures About Market Risk
          
 Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
  24




---



##### Table of Contents



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
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    191
    
    
    $
    23.66
    
    
    
    185February 1  February 29Common Stock
    
    
    275
    
    
    $
    23.38
    
    
    
    275Class A Common Stock
    
    
    1,470
    
    
    $
    22.60
    
    
    
    1,350March 1  March 31Common Stock
    
    
    50
    
    
    $
    22.26
    
    
    
    50Class A Common Stock
    
    
    550
    
    
    $
    21.92
    
    
    
    550Total
    
    
    2,536
    
    
    $
    22.61
    
    
    
    2,410
  25




---



##### Table of Contents



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
 26




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##### Table of Contents



SIGNATURES
  MOLEX INCORPORATED(Registrant) Date: April 30, 2008
    /S/ DAVID D. JOHNSONDavid D. Johnson
Executive Vice President, Treasurer and
Chief Financial Officer
(Principal Financial Officer) 27