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
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.