Interim Management Statement

RNS Number : 2911E

TT electronics PLC

09 May 2013

 



9 May 2013                                                                                                                                          

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 four months ended 30 April 2013.

The Board anticipates that the Group's performance for 2013 will be in line with its expectations, with investments being made to position the business for future growth and to improve margins.

Overall sales for the four months to April 2013 were ahead of the prior period by 2.5% at constant exchange rates, benefiting from the inclusion of the ACW Technology business following its acquisition in December 2012.  Underlying sales were down by 2.6% reflecting a resilient performance in continuing difficult market conditions and the weaker order pattern during the last quarter of 2012.  Order trends have improved over the first four months of 2013 and the ratio of orders to sales was greater than one.

Increasing demand for intelligence and control in transportation and industrial manufacturing is leading to greater deployment of complex electronic systems with integrated sensors.  As outlined in the year end results announcement, we are combining our sensor capabilities with our complementary skills in power management and control to form a single Sensing and Control business.  This will develop our core strengths with the potential to deliver significant growth through enhanced market access and increased innovation.   There is further scope to improve margins by expanding in our established lower cost manufacturing locations in Mexico, India, China and Romania.  Implementation of the new structure is well advanced and will be complete by the beginning of June. A Capital Markets Day will be held for analysts and investors on 25 June 2013 giving further detail of the new Sensing and Control Business.

The integration of the ACW Technology business into our Integrated Manufacturing Services division is proceeding to plan, and we have successfully transferred manufacturing from ACW's China operation to our Suzhou facility.  We plan to expand the IMS business into the Group's existing facilities in Romania in the second half.

The balance sheet remains strong with capacity to develop the business through both investment in new product development and our operational capabilities, as well as through selective acquisitions to accelerate growth in target markets and expand our range of complementary technologies.

Enquiries:

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

 

 

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