Shannon cable firm reports €2.8m profit

Molex Ireland Ltd, the Shannon-based cable and switch-maker currently undergoing restructuring, reported profits of €2.8 million last year.

Last week the company, which made a loss of €3.5 million in 2005, said that it was going to consolidate its operations at Shannon by closing down its Cork-based plant at Millstreet with the loss of over 120 jobs.

Accounts filed at the Companies Registration Office show that the firm's operating profit last year was €2.8 million after tax, while it also received a dividend of €5.5 million contributing to retained profits at the operation of €57 million. The accounts also show that Molex increased its turnover from €113 million in 2005 to €122 million in 2006.

The loss in 2005 was partly attributable to restructuring costs of €1 million. During that year, the numbers involved in production at Molex dropped from 497 to 433. Restructuring costs last year were €€43,000.

According to a statement attached to the accounts, "the directors expect the general level of activity to continue for the foreseeable future".

"The company does not propose any significant changes to its principal activities. The company had another successful year, with operations and key performance indicators performing in line with expectations.

"The turnover grew by over 8 per cent in the year, with most of the growth originating in EU markets. Growth was achieved in a marketplace that continued to be competitive.

"Cost of sales grew by over 7 per cent, reflecting the increased costs of production and purchasing manufactured product during the year."

Molex Ireland Ltd was established in 1971 at Shannon as the first European facility for Molex, the USA-based corporation which ranks as the second-largest connector-manufacturer in the world.