##### 



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 December 31, 2007
 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
  þ o o
 o þ
  Common Stock
    
    
    98,681,957Class A Common Stock
    
    
    81,483,697Class B Common Stock
    
    
    94,255




---



##### 



Molex Incorporated
 INDEX
 PagePART I  FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Consolidated Balance Sheets as of December 31, 2007 and June 30, 2007
    
    
    3Condensed Consolidated Statements of Income for the three and six months ended December 31, 2007 and 2006
    
    
    4Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2007 and 2006
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    12Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    22Item 4. Controls and Procedures
    
    
    23PART II  OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    24Item 1A. Risk Factors
    
    
    24Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    24Item 4. Submission of Matters to a Vote of Security Holders
    
    
    24Item 6. Exhibits
    
    
    25SIGNATURES
    
    
    26By-laws2000 Molex Long-Term Stock Plan, as Amended and RestatedForm of Equity Award Agreement2005 Molex Incentive Stock Option Plan, as Amended and Restated2005 Molex Supplemental Executive Retirement Plan, as Amended and RestatedMolex Executive Deferred Compensation PlanSection 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
 Dec. 31,
    
    
    June 30,2007
    
    
    2007(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    399,038
    
    
    $
    378,361Marketable securities
    
    
    43,545
    
    
    
    82,549Accounts receivable, less allowances of $37,130 and $31,064, respectively
    
    
    725,091
    
    
    
    685,666Inventories
    
    
    411,291
    
    
    
    392,680Other current assets
    
    
    57,994
    
    
    
    51,571Total current assets
    
    
    1,636,959
    
    
    
    1,590,827Property, plant and equipment, net
    
    
    1,138,919
    
    
    
    1,121,369Goodwill
    
    
    369,381
    
    
    
    334,791Other assets
    
    
    295,354
    
    
    
    269,121Total assets
    
    $
    3,440,613
    
    
    $
    3,316,108LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    289,898
    
    
    $
    279,847Accrued expenses
    
    
    201,365
    
    
    
    187,890Other current liabilities
    
    
    82,881
    
    
    
    63,214Total current liabilities
    
    
    574,144
    
    
    
    530,951Other non-current liabilities
    
    
    25,361
    
    
    
    25,612Accrued pension and postretirement benefits
    
    
    111,668
    
    
    
    108,693Long-term debt
    
    
    137,493
    
    
    
    127,821Total liabilities
    
    
    848,666
    
    
    
    793,077Commitments and contingenciesStockholders equity:Common stock
    
    
    11,064
    
    
    
    11,020Paid-in capital
    
    
    543,633
    
    
    
    520,037Retained earnings
    
    
    2,722,183
    
    
    
    2,650,470Treasury stock
    
    
    (916,617
    )
    
    
    (799,894
    )Accumulated other comprehensive income
    
    
    231,684
    
    
    
    141,398Total stockholders equity
    
    
    2,591,947
    
    
    
    2,523,031Total liabilities and stockholders equity
    
    $
    3,440,613
    
    
    $
    3,316,108
  3




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##### 



Molex Incorporated
Condensed Consolidated Statements of Income
 Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Net revenue
    
    $
    841,560
    
    
    $
    837,467
    
    
    $
    1,634,170
    
    
    $
    1,667,012Cost of sales
    
    
    588,445
    
    
    
    578,958
    
    
    
    1,144,905
    
    
    
    1,139,094Gross profit
    
    
    253,115
    
    
    
    258,509
    
    
    
    489,265
    
    
    
    527,918Selling, general and administrative
    
    
    165,699
    
    
    
    167,691
    
    
    
    326,334
    
    
    
    333,992Restructuring costs and asset impairments
    
    
    7,258
    
    
    
    
    
    
    
    9,887
    
    
    
    Total operating expenses
    
    
    172,957
    
    
    
    167,691
    
    
    
    336,221
    
    
    
    333,992Income from operations
    
    
    80,158
    
    
    
    90,818
    
    
    
    153,044
    
    
    
    193,926Investment income
    
    
    2,081
    
    
    
    1,792
    
    
    
    2,779
    
    
    
    3,609Interest income, net
    
    
    2,356
    
    
    
    2,009
    
    
    
    4,920
    
    
    
    4,089Other income, net
    
    
    4,437
    
    
    
    3,801
    
    
    
    7,699
    
    
    
    7,698Income before income taxes
    
    
    84,595
    
    
    
    94,619
    
    
    
    160,743
    
    
    
    201,624Income taxes
    
    
    25,379
    
    
    
    28,392
    
    
    
    48,223
    
    
    
    58,896Net income
    
    $
    59,216
    
    
    $
    66,227
    
    
    $
    112,520
    
    
    $
    142,728Earnings per share:Basic
    
    $
    0.33
    
    
    $
    0.36
    
    
    $
    0.62
    
    
    $
    0.78Diluted
    
    $
    0.33
    
    
    $
    0.36
    
    
    $
    0.61
    
    
    $
    0.77Dividends declared per share
    
    $
    0.1125
    
    
    $
    0.0750
    
    
    $
    0.2250
    
    
    $
    0.1500Average common shares outstanding:Basic
    
    
    181,034
    
    
    
    184,058
    
    
    
    182,211
    
    
    
    183,895Diluted
    
    
    182,174
    
    
    
    185,969
    
    
    
    183,273
    
    
    
    185,972
  4




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##### 



Molex Incorporated
Condensed Consolidated Statements of Cash Flows
 Six Months EndedDecember 31,2007
    
    
    2006Operating activities:Net income
    
    $
    112,520
    
    
    $
    142,728Add non-cash items included in net income:Depreciation and amortization
    
    
    121,357
    
    
    
    117,696Share-based compensation
    
    
    12,427
    
    
    
    13,744Other non-cash items
    
    
    1,654
    
    
    
    4,346Changes in assets and liabilities:Accounts receivable
    
    
    (6,155
    )
    
    
    5,445Inventories
    
    
    437
    
    
    
    (41,174
    )Accounts payable
    
    
    (5,548
    )
    
    
    (30,620
    )Other current assets and liabilities
    
    
    7,403
    
    
    
    (44,070
    )Other assets and liabilities
    
    
    6,191
    
    
    
    (2,754
    )Cash provided from operating activities
    
    
    250,286
    
    
    
    165,341Investing activities:Capital expenditures
    
    
    (102,417
    )
    
    
    (155,806
    )Proceeds from sales of property, plant and equipment
    
    
    6,787
    
    
    
    2,097Proceeds from sales or maturities of marketable securities
    
    
    253,694
    
    
    
    3,818,536Purchases of marketable securities
    
    
    (213,023
    )
    
    
    (3,709,724
    )Acquisitions
    
    
    (42,470
    )
    
    
    (237,114
    )Other investing activities
    
    
    (6,433
    )
    
    
    3,993Cash used for investing activities
    
    
    (103,862
    )
    
    
    (278,018
    )Financing activities:Proceeds from revolving credit facility
    
    
    
    
    
    
    44,000Payments on revolving credit facility
    
    
    
    
    
    
    (44,000
    )Proceeds from issuance of long-term debt
    
    
    
    
    
    
    131,045Payments of long-term debt
    
    
    (1,467
    )
    
    
    (26,337
    )Cash dividends paid
    
    
    (34,259
    )
    
    
    (27,579
    )Exercise of stock options
    
    
    7,513
    
    
    
    8,107Purchase of treasury stock
    
    
    (111,779
    )
    
    
    (12,539
    )Other financing activities
    
    
    (497
    )
    
    
    452Cash (used for) provided by financing activities
    
    
    (140,489
    )
    
    
    73,149Effect of exchange rate changes on cash
    
    
    14,742
    
    
    
    6,126Net increase (decrease) in cash and cash equivalents
    
    
    20,677
    
    
    
    (33,402
    )Cash and cash equivalents, beginning of period
    
    
    378,361
    
    
    
    332,815Cash and cash equivalents, end of period
    
    $
    399,038
    
    
    $
    299,413
  5




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##### 



Molex Incorporated
Notes to Condensed Consolidated Financial Statements
 1. Basis of Presentation
    2. Restructuring Costs and Asset Impairments
   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 current quarter
    
    
    1,254
    
    
    
    954
    
    
    
    (1,107
    )
    
    
    6,157
    
    
    
    7,258Cumulative costs at Dec. 31, 2007
    
    $
    5,246
    
    
    $
    7,396
    
    
    $
    11,525
    
    
    $
    22,589
    
    
    $
    46,756
 6




---



##### 



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
    
    $
    30,720
  3. Acquisition
  4. Earnings Per Share
  Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Basic average common shares outstanding
    
    
    181,034
    
    
    
    184,058
    
    
    
    182,211
    
    
    
    183,895Effect of dilutive stock options
    
    
    1,140
    
    
    
    1,911
    
    
    
    1,062
    
    
    
    2,077Diluted average common shares outstanding
    
    
    182,174
    
    
    
    185,969
    
    
    
    183,273
    
    
    
    185,972
 5. Comprehensive Income
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    59,216
    
    
    $
    66,227
    
    
    $
    112,520
    
    
    $
    142,728Translation adjustments
    
    
    42,306
    
    
    
    31,126
    
    
    
    83,801
    
    
    
    25,899Unrealized investment gain
    
    
    3,989
    
    
    
    1,323
    
    
    
    6,485
    
    
    
    5,466Total comprehensive income
    
    $
    105,511
    
    
    $
    98,676
    
    
    $
    202,806
    
    
    $
    174,093
 7




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##### 



6. Inventories
  Dec. 31,
    
    
    June 30,2007
    
    
    2007Raw materials
    
    $
    79,321
    
    
    $
    85,320Work in process
    
    
    121,356
    
    
    
    107,394Finished goods
    
    
    210,614
    
    
    
    199,966Total inventories
    
    $
    411,291
    
    
    $
    392,680
 7. Pensions and Other Postretirement Benefits
   Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    2,445
    
    
    $
    1,971
    
    
    $
    4,691
    
    
    $
    3,942Interest cost
    
    
    2,367
    
    
    
    1,558
    
    
    
    4,295
    
    
    
    3,116Expected return on plan assets
    
    
    (2,893
    )
    
    
    (1,606
    )
    
    
    (5,065
    )
    
    
    (3,212
    )Amortization of prior service cost
    
    
    53
    
    
    
    57
    
    
    
    106
    
    
    
    114Recognized actuarial losses
    
    
    85
    
    
    
    45
    
    
    
    170
    
    
    
    90Amortization of transition obligation
    
    
    11
    
    
    
    10
    
    
    
    21
    
    
    
    20Curtailment adjustment
    
    
    (5,444
    )
    
    
    
    
    
    
    (5,444
    )
    
    
    Benefit cost (credit)
    
    $
    (3,376
    )
    
    $
    2,035
    
    
    $
    (1,226
    )
    
    $
    4,070
  Three Months Ended
    
    
    Six Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    765
    
    
    $
    581
    
    
    $
    1,524
    
    
    $
    1,153Interest cost
    
    
    812
    
    
    
    656
    
    
    
    1,619
    
    
    
    1,301Amortization of prior service cost
    
    
    (175
    )
    
    
    (168
    )
    
    
    (348
    )
    
    
    (334
    )Recognized actuarial losses
    
    
    329
    
    
    
    275
    
    
    
    656
    
    
    
    545Benefit cost
    
    $
    1,731
    
    
    $
    1,344
    
    
    $
    3,451
    
    
    $
    2,665
 8. Long-Term Debt
  8




---



##### 



9. Income Taxes
 .
    10. New Accounting Pronouncements
   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.
 9




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##### 




    
    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:December 31, 2007:Revenues from external customers
    
    $
    490,289
    
    
    $
    122,926
    
    
    $
    225,962
    
    
    $
    2,383
    
    
    $
    841,560Income (loss) from operations
    
    
    82,248
    
    
    
    124
    
    
    
    17,076
    
    
    
    (19,290
    )
    
    
    80,158Depreciation & amortization
    
    
    38,916
    
    
    
    9,450
    
    
    
    8,722
    
    
    
    3,296
    
    
    
    60,384Capital expenditures
    
    
    30,047
    
    
    
    7,097
    
    
    
    5,776
    
    
    
    10,353
    
    
    
    53,273December 31, 2006:Revenues from external customers
    
    $
    487,138
    
    
    $
    113,412
    
    
    $
    232,438
    
    
    $
    4,479
    
    
    $
    837,467Income (loss) from operations
    
    
    95,437
    
    
    
    727
    
    
    
    13,277
    
    
    
    (18,623
    )
    
    
    90,818Depreciation & amortization
    
    
    35,820
    
    
    
    9,631
    
    
    
    9,737
    
    
    
    4,386
    
    
    
    59,574Capital expenditures
    
    
    54,079
    
    
    
    12,888
    
    
    
    8,113
    
    
    
    5,160
    
    
    
    80,240For the six months ended:December 31, 2007:Revenues from external customers
    
    $
    942,543
    
    
    $
    242,979
    
    
    $
    444,165
    
    
    $
    4,483
    
    
    $
    1,634,170Income (loss) from operations
    
    
    157,592
    
    
    
    4,527
    
    
    
    34,134
    
    
    
    (43,209
    )
    
    
    153,044Depreciation & amortization
    
    
    77,108
    
    
    
    19,391
    
    
    
    17,665
    
    
    
    7,193
    
    
    
    121,357Capital expenditures
    
    
    59,124
    
    
    
    16,614
    
    
    
    8,963
    
    
    
    17,716
    
    
    
    102,417December 31, 2006:Revenues from external customers
    
    $
    983,151
    
    
    $
    218,681
    
    
    $
    454,551
    
    
    $
    10,629
    
    
    $
    1,667,012Income (loss) from operations
    
    
    204,795
    
    
    
    850
    
    
    
    33,024
    
    
    
    (44,743
    )
    
    
    193,926Depreciation & amortization
    
    
    70,304
    
    
    
    19,487
    
    
    
    19,348
    
    
    
    8,557
    
    
    
    117,696Capital expenditures
    
    
    97,396
    
    
    
    28,777
    
    
    
    19,630
    
    
    
    10,003
    
    
    
    155,806
   Trans-
    
    Custom &
    
    CorporateConnector
    
    portation
    
    Electrical
    
    & Other
    
    TotalDecember 31, 2007
    
    $
    1,264,257
    
    
    $
    380,051
    
    
    $
    484,380
    
    
    $
    146,613
    
    
    $
    2,275,301June 30, 2007
    
    
    1,167,163
    
    
    
    407,034
    
    
    
    454,730
    
    
    
    170,788
    
    
    
    2,199,715
 10




---



##### 



Dec. 31,
    
    
    June 30,2007
    
    
    2007Segment net assets
    
    $
    2,275,301
    
    
    $
    2,199,715Other current assets
    
    
    500,577
    
    
    
    512,481Non current assets
    
    
    664,735
    
    
    
    603,912Consolidated total assets
    
    $
    3,440,613
    
    
    $
    3,316,108
  11




---



##### 



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.
   12




---



##### 



Critical Accounting Policies and Estimates
   Income Taxes
  13




---



##### 



Results of Operations
  Percentage
    
    
    
    
    
    
    Percentage2007
    
    
    of Revenue
    
    
    2006
    
    
    of RevenueNet revenue
    
    $
    841,560
    
    
    
    100.0
    %
    
    $
    837,467
    
    
    
    100.0
    %Cost of sales
    
    
    588,445
    
    
    
    69.9
    %
    
    
    578,958
    
    
    
    69.1
    %Gross profit
    
    
    253,115
    
    
    
    30.1
    %
    
    
    258,509
    
    
    
    30.9
    %Selling, general & administrative
    
    
    165,699
    
    
    
    19.7
    %
    
    
    167,691
    
    
    
    20.1
    %Restructuring costs and asset impairments
    
    
    7,258
    
    
    
    0.9
    %
    
    
    
    
    
    
    Income from operations
    
    
    80,158
    
    
    
    9.5
    %
    
    
    90,818
    
    
    
    10.8
    %Other income, net
    
    
    4,437
    
    
    
    0.5
    %
    
    
    3,801
    
    
    
    0.5
    %Income before income taxes
    
    
    84,595
    
    
    
    10.0
    %
    
    
    94,619
    
    
    
    11.3
    %Income taxes
    
    
    25,379
    
    
    
    3.0
    %
    
    
    28,392
    
    
    
    3.4
    %Net income
    
    $
    59,216
    
    
    
    7.0
    %
    
    $
    66,227
    
    
    
    7.9
    %
  Percentage
    
    
    
    
    
    
    Percentage2007
    
    
    of Revenue
    
    
    2006
    
    
    of RevenueNet revenue
    
    $
    1,634,170
    
    
    
    100.0
    %
    
    $
    1,667,012
    
    
    
    100.0
    %Cost of sales
    
    
    1,144,905
    
    
    
    70.1
    %
    
    
    1,139,094
    
    
    
    68.3
    %Gross profit
    
    
    489,265
    
    
    
    29.9
    %
    
    
    527,918
    
    
    
    31.7
    %Selling, general & administrative
    
    
    326,334
    
    
    
    20.0
    %
    
    
    333,992
    
    
    
    20.1
    %Restructuring costs and asset impairments
    
    
    9,887
    
    
    
    0.6
    %
    
    
    
    
    
    
    Income from operations
    
    
    153,044
    
    
    
    9.3
    %
    
    
    193,926
    
    
    
    11.6
    %Other income, net
    
    
    7,699
    
    
    
    0.5
    %
    
    
    7,698
    
    
    
    0.5
    %Income before income taxes
    
    
    160,743
    
    
    
    9.8
    %
    
    
    201,624
    
    
    
    12.1
    %Income taxes
    
    
    48,223
    
    
    
    2.9
    %
    
    
    58,896
    
    
    
    3.5
    %Net income
    
    $
    112,520
    
    
    
    6.9
    %
    
    $
    142,728
    
    
    
    8.6
    %
 Net Revenue
  Comparable
    
    SequentialQuarter
    
    QuarterConsumer
    
    
    2.2
    %
    
    
    4.6
    %Telecommunications
    
    
    (3.2
    )
    
    
    12.4Automotive
    
    
    12.3
    
    
    
    3.8Data
    
    
    7.0
    
    
    
    6.2Industrial
    
    
    (16.6
    )
    
    
    (2.3
    )
  14




---



##### 



Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Americas
    
    
    26
    %
    
    
    29
    %
    
    
    27
    %
    
    
    28
    %Northern Asia
    
    
    16
    
    
    
    15
    
    
    
    15
    
    
    
    15Southeast Asia and Australia
    
    
    38
    
    
    
    37
    
    
    
    38
    
    
    
    38Europe
    
    
    20
    
    
    
    19
    
    
    
    20
    
    
    
    19Total
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  Three Months Ended December 31, 2007
    
    
    Six Months Ended December 31, 2007Local
    
    
    Currency
    
    
    Net
    
    
    Local
    
    
    Currency
    
    
    NetCurrency
    
    
    Translation
    
    
    Change
    
    
    Currency
    
    
    Translation
    
    
    ChangeAmericas
    
    $
    (24,994
    )
    
    $
    1,116
    
    
    $
    (23,878
    )
    
    $
    (23,983
    )
    
    $
    1,593
    
    
    $
    (22,390
    )Northern Asia
    
    
    10,279
    
    
    
    4,257
    
    
    
    14,536
    
    
    
    2,902
    
    
    
    708
    
    
    
    3,610Southeast Asia and Australia
    
    
    (9,207
    )
    
    
    13,766
    
    
    
    4,559
    
    
    
    (43,371
    )
    
    
    22,629
    
    
    
    (20,742
    )Europe
    
    
    (14,845
    )
    
    
    18,346
    
    
    
    3,501
    
    
    
    (23,955
    )
    
    
    28,408
    
    
    
    4,453Corporate & other
    
    
    5,375
    
    
    
    
    
    
    
    5,375
    
    
    
    2,227
    
    
    
    
    
    
    
    2,227Net change
    
    $
    (33,392
    )
    
    $
    37,485
    
    
    $
    4,093
    
    
    $
    (86,180
    )
    
    $
    53,338
    
    
    $
    (32,842
    )
  Three Months
    
    Six MonthsEnded
    
    EndedDec. 31, 2007
    
    Dec. 31, 2007Americas
    
    
    (10.4
    )%
    
    
    (5.1
    )%Northern Asia
    
    
    8.4
    
    
    
    1.2Southern Asia and Australia
    
    
    (3.0
    )
    
    
    (6.8
    )Europe
    
    
    (9.2
    )
    
    
    (7.6
    )Total
    
    
    (4.0
    )%
    
    
    (5.2
    )%
 15




---



##### 



Percentage
    
    
    
    
    
    Percentage2007
    
    of Revenue
    
    2006
    
    of RevenueConnector
    
    $
    490,289
    
    
    
    58.3
    %
    
    $
    487,138
    
    
    
    58.2
    %Transportation
    
    
    122,926
    
    
    
    14.6
    
    
    
    113,412
    
    
    
    13.5Custom & Electrical
    
    
    225,962
    
    
    
    26.9
    
    
    
    232,438
    
    
    
    27.8Corporate & Other
    
    
    2,383
    
    
    
    0.2
    
    
    
    4,479
    
    
    
    0.5Total
    
    $
    841,560
    
    
    
    100.0
    %
    
    $
    837,467
    
    
    
    100.0
    %
  Percentage
    
    
    
    
    
    
    Percentage2007
    
    
    of Revenue
    
    
    2006
    
    
    of RevenueConnector
    
    $
    942,543
    
    
    
    57.7
    %
    
    $
    983,151
    
    
    
    59.0
    %Transportation
    
    
    242,979
    
    
    
    14.9
    
    
    
    218,681
    
    
    
    13.1Custom & Electrical
    
    
    444,165
    
    
    
    27.2
    
    
    
    454,551
    
    
    
    27.3Corporate & Other
    
    
    4,483
    
    
    
    0.2
    
    
    
    10,629
    
    
    
    0.6Total
    
    $
    1,634,170
    
    
    
    100.0
    %
    
    $
    1,667,012
    
    
    
    100.0
    %
 Gross Profit
  Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Gross profit
    
    $
    253,115
    
    
    $
    258,509
    
    
    $
    489,265
    
    
    $
    527,918Gross margin
    
    
    30.1
    %
    
    
    30.9
    %
    
    
    29.9
    %
    
    
    31.7
    %
   Three Months
    
    Six MonthsEnded
    
    EndedDec. 31, 2007
    
    Dec. 31, 2007Price erosion
    
    $
    (39,338
    )
    
    
    (80,362
    )Currency translation
    
    
    10,789
    
    
    
    15,648Currency transaction
    
    
    (2,553
    )
    
    
    743
  16




---



##### 



Operating Expenses
  Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Selling, general and administrative
    
    $
    165,699
    
    
    $
    167,691
    
    
    $
    326,334
    
    
    $
    333,992Selling, general and administrative
as a percentage of revenue
    
    
    19.7
    %
    
    
    20.1
    %
    
    
    20.0
    %
    
    
    20.1
    %Restructuring costs and asset impairments
    
    $
    7,258
    
    
    $
    
    
    
    $
    9,887
    
    
    $
    
    Effective Tax Rate
 .
 Backlog
  17




---



##### 



Segments
 Connector
  Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2007
    
    
    Dec. 31, 2007Change in net revenue due to:Organic net revenue decline
    
    $
    (16,946
    )
    
    $
    (67,226
    )Currency translation
    
    
    20,097
    
    
    
    26,618Total net revenue growth (decline)
    
    $
    3,151
    
    
    $
    (40,608
    )Organic net revenue decline percentage
    
    
    (3.5
    )%
    
    
    (6.8
    )%
   Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Income from operations
    
    $
    82,248
    
    
    $
    95,437
    
    
    $
    157,592
    
    
    $
    204,795Operating margin
    
    
    16.8
    %
    
    
    19.6
    %
    
    
    16.7
    %
    
    
    20.8
    %
  18




---



##### 



Transportation
  Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2007
    
    
    Dec. 31, 2007Change in net revenue due to:Organic net revenue growth
    
    $
    2,854
    
    
    $
    14,736Currency translation
    
    
    6,660
    
    
    
    9,562Total net revenue growth
    
    $
    9,514
    
    
    $
    24,298Organic net revenue growth percentage
    
    
    2.5
    %
    
    
    6.7
    %
   Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Income from operations
    
    $
    124
    
    
    $
    727
    
    
    $
    4,527
    
    
    $
    850Operating margin
    
    
    0.1
    %
    
    
    0.6
    %
    
    
    1.9
    %
    
    
    0.4
    %
  Custom & Electrical
  Three Months
    
    
    Six MonthsEnded
    
    
    EndedDec. 31, 2007
    
    
    Dec. 31, 2007Change in net revenue due to:Organic net revenue decline
    
    $
    (17,094
    )
    
    $
    (27,319
    )Currency translation
    
    
    10,618
    
    
    
    16,933Total net revenue decline
    
    $
    (6,476
    )
    
    $
    (10,386
    )Organic net revenue decline percentage
    
    
    (7.4
    )%
    
    
    (6.0
    )%
  19




---



##### 



Three Months Ended
    
    Six Months EndedDecember 31,
    
    December 31,2007
    
    2006
    
    2007
    
    2006Income from operations
    
    $
    17,076
    
    
    $
    13,277
    
    
    $
    34,134
    
    
    $
    33,024Operating margin
    
    
    7.6
    %
    
    
    5.7
    %
    
    
    7.7
    %
    
    
    7.3
    %
  Non-GAAP Financial Measures
   Financial Condition and Liquidity
  20




---



##### 



Cash Flows
  Six Months EndedDecember 31,2007
    
    
    2006Cash provided from operating activities
    
    $
    250,286
    
    
    $
    165,341Cash used for investing activities
    
    
    (103,862
    )
    
    
    (278,018
    )Cash (used for) provided by financing activities
    
    
    (140,489
    )
    
    
    73,149Effect of exchange rate changes on cash
    
    
    14,742
    
    
    
    6,126Net increase (decrease) in cash
    
    $
    20,677
    
    
    $
    (33,402
    )
 Operating Activities
  Investing Activities
   Financing Activities
   21




---



##### 



Contractual Obligations and Commercial Commitments
  Cautionary Statement Regarding Forward-Looking Information
   
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
    22




---



##### 



Item 4. Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
   Internal Control Over Financial Reporting
  23




---



##### 



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 PlanOctober 1  October 31Common Stock
    
    
    200
    
    
    $
    27.79
    
    
    
    200Class A Common Stock
    
    
    648
    
    
    $
    26.48
    
    
    
    600November 1  November 30Common Stock
    
    
    247
    
    
    $
    28.20
    
    
    
    200Class A Common Stock
    
    
    925
    
    
    $
    26.89
    
    
    
    900December 1  December 31Common Stock
    
    
    
    
    
    $
    
    
    
    
    Class A Common Stock
    
    
    2
    
    
    $
    26.70
    
    
    
    Total
    
    
    2,022
    
    
    $
    27.01
    
    
    
    1,900
  
 Item 4. Submission of Matters to a Vote of Security Holders
  24




---



##### 



For
    
    WithheldMichael J. Birck
    
    
    83,793,539
    
    
    
    10,686,496Frederick A. Krehbiel
    
    
    89,162,028
    
    
    
    5,318,007Kazumasa Kusaka
    
    
    92,159,886
    
    
    
    2,320,149Martin P. Slark
    
    
    90,382,794
    
    
    
    4,097,241
 For
    
    Against
    
    Abstain(2) Approval of Amended 2000 Molex Long-Term Stock Plan
    
    
    85,276,496
    
    
    
    2,986,370
    
    
    
    951,721(3) Approval of Amended 2005 Molex Incentive Stock Option Plan
    
    
    83,755,561
    
    
    
    4,496,718
    
    
    
    962,309(4) Ratification of the selection of Ernst & Young, LLP
    
    
    93,575,744
    
    
    
    79,234
    
    
    
    825,057
 
 Item 6. Exhibits
 Number
    
    Description3.2
    
    By-laws (as amended and restated).10.1
    
    2000 Molex Long-Term Stock Plan, as amended and restated.10.2
    
    Form of Equity Award Agreement under the 2000 Molex Long-Term Stock Plan.10.3
    
    2005 Molex Incentive Stock Option Plan, as amended and restated.10.4
    
    2005 Molex Supplemental Executive Retirement Plan, as amended and restated.10.5
    
    Molex Executive Deferred Compensation Plan.31
    
    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
 25




---



##### 



SIGNATURES
  MOLEX INCORPORATED(Registrant) Date: February 4, 2008
    /S/ DAVID D. JOHNSONDavid D. JohnsonExecutive Vice President, Treasurer and
Chief Financial Officer
(Principal Financial Officer) 26