Molex Raises 1Q Revenue Outlook, But Expects Loss

LISLE, Ill. (AP) — Electronic components maker Molex Inc. on Monday raised its revenue outlook for the first quarter as customer orders increased, particularly in Asia, but it expects to post a loss due to a heftier restructuring charge for closing a European plant.

Molex CEO Martin Slark cautioned that it's still tough to judge whether stepped-up orders is due to higher demand from customers or temporary factors such as clients merely wishing to restock inventory.

But its shares climbled almost 7 percent in morning trading.

The company expects to report revenue of $650 million to $665 million in the quarter ended Sept. 30, compared with its previous estimate of $590 million to $630 million given in August. Molex said orders have increased, with the strongest showing coming from Asia.

Analysts polled by Thomson Reuters expected revenue of $616 million, on average.

Molex said the restructuring cost related to the closing of a European manufacturing plant will increase. The estimate now is $270 million to $280 million due to revised severance and other costs. Previously, charges were expected at $240 million to $250 million.