The Malta Independent 27 May 2017, Saturday

Methode Electronics identified Donald Trump among new potential risk factors

Gabriel Schembri Friday, 30 December 2016, 10:30 Last update: about 6 months ago

The American company Methode Electronics, which currently employs more than 1,200 people in its premises in Malta, has included another risk factor in its regulatory filings.

The new risk factor identified by the company is called Donald Trump.

According to the latest financial results for the quarter which ended in October 2016, Methode Electronics is now considering the new president-elect Donald Trump as a potential risk factor.

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This new risk factor emerged as Trump had promised, prior to winning his seat in the Oval Office, that he would drastically increase the tax for American companies manufacturing outside the United States.

Methode Electronics' significant portion of its business activities are conducted in foreign countries that include Mexico and China.

The comments made by Trump regarding the North American Free Trade Agreement caused particular concern for the American company.

Out of the $800 million in sales reported in by the end of the fiscal year, more than 60% was in the US. Still the company identifies its major manufacturing locations as Cairo, Shanghai, China and Malta.

"Any attempt by President-elect Trump to withdraw from or materially modify NAFTA and certain other international trade agreements could adversely affect our business, financial condition and results of operations," Methode Electronics was quoted saying in a report.

Despite the pre-electoral claims and promises by the controversial president-elect, there is no clear indication that any changes will be made to the international trade agreements.

The company has about 4,345 workers, of which about two-thirds are in Malta and Mexico.

Earlier this year, Methode Electronics had announced an investment of €5 million together with an expansion of the factory in Mriehel. 


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