Trading Statement

TT electronics PLC 12 December 2007 TT electronics plc Trading Update TT electronics, a world leader in sensor and electronic component technology, confirms that trading for the current financial year is anticipated to be broadly in line with market expectations. The adverse effect of the translation of US dollar profits due to the weakness of the US dollar has had a major impact on profitability. The group's sensor and systems business continues to perform satisfactorily with stable demand from the German automotive market for sensors, but downward pricing pressure on climate control systems has resulted in a reduction in revenue and margin. The group expects the revenue from climate control systems to reduce significantly in 2008 as programmes come to an end and are not replaced. The electronic component operations in the USA have suffered from reduced domestic demand due to overall softness in the market particularly in the automotive sector. New products being developed and coming on stream, coupled with the recent investment in our thin film resistor operation in Texas which is now nearly complete, will give improved opportunities for growth in 2008. The electronic manufacturing services businesses have had a stronger second half performance and have good prospects for 2008. Margins have improved following the resolution of start up problems in Malaysia earlier this year and are expected to improve further in 2008. The electrical businesses, which mainly operate in the growth markets of defence and secure power, continue to produce good results. TT electronics maintains a robust balance sheet and a prudent level of gearing. However, anticipated softness in the US market, the reduction in revenue from climate control systems and the cost of further transfers of manufacturing to low cost economies are all anticipated to have an impact on performance in 2008. The Directors therefore believe that 2008 will be challenging but are of the opinion that the results for next year will be at a similar level to 2007. For further information please contact: TT electronics plc Neil Rodgers, Chief Executive Tel: 01932 841310 Biddicks Zoe Biddick Tel: 020 7448 1000 This information is provided by RNS The company news service from the London Stock Exchange
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