Interim Management Statement

RNS Number : 1266V

TT electronics PLC

28 October 2010

 



TTG

TT electronics plc

Interim Management Statement

TT electronics plc, a world leader in sensor and electronic component technology, issues this Interim Management Statement in accordance with the UK's Listing Authority's Disclosure and Transparency Rules.  It covers the period from 1 July 2010 and is based on the trading results for the nine months ended 30 September 2010.

Current Trading

As stated in the half year results announcement, trading conditions in the first half of 2010 improved significantly over the prior year.  This improvement continued in the third quarter with good growth in the majority of our markets including automotive markets in Europe and Asia.  Sales from continuing operations in the nine months to September of £430.7 million were ahead of the prior comparative period by 29% after adjusting for foreign exchange movements and the closure of the AB Automotive business in 2009.  All our divisions are trading well ahead of the comparable period and this, together with the cost base reductions in 2009, has led to a considerable improvement in operating performance.  As the supply chain becomes more fully stocked, we expect some easing in the rate of growth during the last quarter of the year to normalised levels.  The strength of our order book however provides improved visibility through to the end of the year.

Strategy

Good progress continues to be made in executing the Group's strategy, with the emphasis on the delivery of operational excellence in the areas of customer focus, product innovation and manufacturing to create a strong platform for sustainable growth and margin improvement over the medium and long term.  Following the implementation of the global sales structure in the Components division, work to reorganise the rest of the Components business into customer-led global product groups supported by an integrated manufacturing and fulfilment organisation has recently started.  In the Sensors division, we are investing in our facilities in China, India and Mexico as the business continues to extend its reach globally, working with key customers in Europe, Asia and South America.

Financial Position

Active management of the Group's working capital continues to be a priority, at the same time as investing capital in the strategic development of the business.  The Group continues to strengthen relationships with the club of four banks which provided the new committed facility agreed in May, benefiting from local support in our key geographies.  Net debt at the end of September was £48.3 million compared with £56.9 million at the start of the year.

Outlook

The business has continued to trade well with consistently higher volumes and improved visibility to the end of the year.  Based on this, the Board now expects that the overall performance for the full year will be moderately ahead of its previous expectations.

Enquiries:

TT electronics plc                                                                  Tel:  [phone]

Geraint Anderson, Group Chief Executive

Shatish Dasani, Group Finance Director

Biddicks                                                                                 Tel:  [phone]

Zoë Biddick

Note:

This statement contains certain forward-looking statements.  Such statements are made by the Directors in good faith based on the information available to them at the time of the announcement and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.

 

END

 

 

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