January 28, 2009 / 1:40 AM / 9 years ago

UPDATE 2-Molex posts Q2 loss, to cut jobs

* Q2 rev $666.7 mln vs est. $654.3 mln

* Sees Q3 rev $500-$570 mln vs est. $619.3 mln

* Shares fall 6 pct in after-hours trading (Adds detail and job cuts from conference call, dateline)

NEW YORK, Jan 27 (Reuters) - Electronic components-maker Molex Inc MOLX.O said on Tuesday it swung to a fiscal second-quarter loss and accelerated efforts to slash jobs and reorganize the company as global sales decline.

The Lisle, Illinois, company also forecast lower-than-expected third-quarter revenue and said its officers and employees would take a pay cut as of next month.

In the quarter ended in December, Molex had a net loss of 50 cents a share as revenue fell 21 percent to $667 million.

Analysts, on average, had expected Molex to earn 14 cents a share in the quarter on $655 million of revenue, according to Reuters Estimates.

Among other changes, Molex will close some automotive plants in Germany and the China, leading to more job cuts. Meanwhile, the industrial business plans to consolidate two Canadian facilities and close a U.S. warehouse, the company added.

Molex also said it would consolidate five global product divisions into three.

The restructuring moves will reduce 2,500 jobs in the March quarter, the company said in a conference call, in addition to 5,600 layoffs in the December quarter and an expansion of the 1,200 job cuts announced earlier this month.

All in, Molex said it will have eliminated 25 percent of its workforce between September and March.

For the third quarter, Molex expects to generate $500 million to $570 million of revenue. Analysts had expected $619.3 million.

Molex plans to record a pretax charge through the end of fiscal 2010 of about $220 million, compared with its previous estimate of $125 to $140 million.

Cost-cutting will help Molex post a profit in the fourth quarter.

Shares of the company fell 6 percent to $13.15 in trading after the bell. They closed at $13.98 Tuesday on Nasdaq. (Reporting by Joe Giannone in New York and Amulya Nagaraj in Bangalore; Editing by Anil D’Silva, Richard Chang) (joseph.giannone@thomsonreuters.com; +1 646 223 6184; Reuters Messaging: joseph.giannone.reuters.com@reuters.net)

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