This article is from page 11 of the 2007-06-19 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 11 JPG
ONE of Shannon’s longest serving companies and biggest employers, Molex Ireland Ltd, returned to profit last year with gains of €2.8 million after tax.
The company announced last week that it would consolidate its opera- tions at Shannon by closing down its Cork-based plant with the loss of over 100 jobs. In response to reports that up to 50 jobs could be lost from its Shannon plant, Molex Ireland has stated that it has begun a month long
consultation phase with all of its em- ployees. A company statement said: “Until the review period is complete, no further information or comment on the extent of possible changes is available or possible at this time.” The profit was recorded in the company’s latest returns to the Companies Office and contrast with losses of €3.5 million in 2005. The accounts also showed that the com- pany’s turnover rose to €122 million last year from €113 million in 2005. According to a statement attached to the accounts, “the directors expect
the general level of activity to con- tinue for the foreseeable future”’.
The loss in 2005 was partly attrib- utable to restructuring costs of €1 million. During that year the num- bers involved in production at Molex dropped from 497 to 433.
Restructuring continued at the com- pany last year at a cost of €443,000.
The company’s operating profit of €2.8 million after tax was helped by a dividend of €5.5 million giving a retained profit of €5.7 million at the end of March last year.
‘The turnover grew by over 8 per
cent in the year with most of the erowth originating in EU markets. Growth was achieved in a market- place that continued to be competi- tive.
Cost of sales grew by over 7 per cent reflecting the increased costs of production and purchasing manu- factured product during the year,’ it continued.
The statement added that directors did not propose the payment of a div- idend for the year.
“The principal business risks and uncertainties faced by the company
in the future are currency risks in dealing with entities with non-Euro denominated currencies as well as the possible effect on sales volumes and margins of end user market de- velopments in relation to new prod- ucts giving rise to product obsoles- cence and loss of competitiveness,’ the statement concluded.
The company’s gross profit in- creased from €12 million in 2004 to €14 million last year.
Molex Ireland Ltd was established in 1971 at Shannon as the first Euro- pean facility for Molex.