Manufacturer sinks into the red after revenues fall

The main Irish unit of the US-owned electronic component manufacturer, Molex went into the red last year as revenues fell by 10% to €51.5m.

Accounts just filed with the Companies Registration Office by Molex Ireland Ltd show the company recorded a pre-tax loss of €1.19m, following the firm recording a pre-tax profit of €4.9m in the 12 months to the end of June 2011.

The figures show that revenues at the Shannon-based firm declined from €62.2m to €51.5m last year.

The company had accumulated profits of €54.5m at the end of June last. The numbers employed by the firm increased from 335 to 352 during the year.

According to the directors’ report, the firm’s revenues decreased “due to the global economic downturn and net impact of global restructuring, whereby a number of industrial related product lines were transferred from the Irish company to other group entitIes”.

The report continues: “The directors expect the general level of activity to stabilise in 2012. However, the company expects that, in the long term, the general level of activity will increase.”

The directors state that the outcome for the year was in line with expectations.

Staff costs at the firm last year increased marginally from €18.1m to €18.3m. The firm employed 288 production staff, 51 in administration and 13 in sales and marketing.

The filings show that the firm recorded non-cash depreciation costs of €3.79m, resulting in the company recording a cash profit for the year.

The figures show that the firm’s R&D costs increased from €227,000 to €944,000.

The returns confirm that the firm’s cost of sales reduced from €52.7m to €48.3m with the firm’s administrative expenses decreasing from €4.1m to €3.7m.

The figures show that the firm recorded an actuarial gain of €8.7m on the pension scheme compared with a loss of €4.7m in 2010.

The figures show that the company’s cash increased from €849,000 to €20.1m last year. The firm’s shareholder funds last year increased from €82.7m to €88.3m.

The directors’ report states “the principal business risks and uncertainties faced by the company in the future include currency risks in dealing with entities with non-euro denominated currencies, global pricing pressures and the competitive pressures from competing emerging markets”.

The accounts show that the firm received a tax credit last year of €126,000.


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