Molex records €3.3m loss

This article is from page 15 of the 2006-08-25 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 15 JPG

ONE of Shannon’s longest operating companies and biggest employers, Molex Ireland Ltd sustained a loss of €3.3 million last year, according to the most recent accounts to the Companies Ofce.

The loss is partly attributable to restructuring costs of €1 million.

During 2005, the numbers involved in production at Molex dropped from 497 to 433 at the end of June last year.

In all, there are 536 people employed at the plant making it one of the biggest employers in Clare. In 2005, the company spent €25.5 million on staff costs.

The accounts show that the USowned company enjoyed a turnover of €119 million in 2005, down €2 million from 2004.

The company’s gross prot increased from €12.4 million in 2004 to €13.6 million last year.

However, the company’s administration costs – which includes the restructuring charge – jumped from €11 million in 2004 to €16 million last year.

As a result, the company’s prot of €982,000 in 2004 turned into a loss of €3.37 million last year.

The director’s report accompanying the company accounts, states: “The directors are pleased with the performance of the company during the year and expect protability to be maintained in the future.”

The directors did not propose a dividend during 2005.

However, the accounts show that the company has considerable accumulated prots of €49 million.

The numbers employed in sales and marketing continues to rise with 21 employed in the sector in 2005 compared to the 2003 gure of six.

The numbers employed in administration remains at 81.

The accounts also show that there is a net decit in the company’s pension scheme of €4.5 million.

Molex Ireland Ltd. was established in 1971 at Shannon as the company’s rst European facility.

In 1982, a 50 per cent share was taken in Smithstown Light Engineering, also at Shannon, which is engaged in the design and manufacture of precision tooling, including moulds and dies.

The present Shannon facility was acquired in 1985, and was extended to its current 20,000 m2 area in 1997, following a IR£20 million investment programme.