Interim Management Statement

RNS Number : 7950P

TT electronics PLC

30 October 2012

 



30 October 2012

TT electronics plc

Interim Management Statement

TT electronics plc ("TT" or "the Group"), a global provider of performance critical technology solutions to leading manufacturers, issues this Interim Management Statement based on the trading results for the nine months ended 30 September 2012.

Global market conditions have continued to deteriorate in recent weeks and there has been a softening of order intake and deferral of call-offs by some key customers. We have continued to work closely with our major customers and win new business opportunities to offset the reduction in base business and improve market share. Consequently, sales at constant exchange rates for the nine months were less than 3% below last year and the Group's trading performance for the full year is now expected to be marginally below the Board's previous expectations.

The expansion of our best cost manufacturing centres has been accelerated and our new facility in Romania is operating with further lines being transferred from our Components and Sensors divisions. The closure of the North American facility with transfer of production to Mexicali, Mexico has been completed ahead of schedule and will start yielding benefit in the fourth quarter. We have also taken further measures to reduce costs in line with the lower levels of activity and global market outlook.

The implementation of our strategy of building our position as a supplier of critical solutions to markets with strong underlying growth drivers is progressing well. The Group has a strong financial position and we are leveraging this to fund organic and inorganic expansion plans. We continue to pursue significant growth opportunities in our core sensors business where we are investing for the medium term. Our sensors facility in India has been relocated successfully to a new site and a global engineering centre is being set up to enhance the application engineering skills for these opportunities. Whilst current market conditions are slowing the rate of margin progression, we remain confident that our strategy will drive the improvement in margins to the stated targets.

With no immediate signs of an improvement in trading conditions, the Group is focused on delivering self-help measures as well as continuing to invest to grow the business and drive margin progression.

Enquiries:

TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director	Tel:  [phone]
Hudson Sandler Andrew Hayes/Andrew Leach/Wendy Baker	Tel:  [phone]

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

 

 

IMSBRBDGGSDBGDC