TT electronics PLC
08 July 2005
TT ELECTRONICS PLC
A world leader in resistor and sensor technology
Trading update
TT electronics' profit before tax is expected to be above the first half of
2004, having benefited from the profit on the sale of the Gravesend property and
after incurring closure costs. At its AGM in May, TT electronics announced that
the slowdown in the automotive markets had resulted in less buoyant trading.
Whilst the electrical sector continues to perform well, the group continues to
experience reduced demand from its automotive customers and the electronic
components market is currently disappointingly flat. As a result, the underlying
profit from trading is below last year's excellent results.
The closure of the Gravesend cable operation is proceeding according to plan and
the group will further benefit from additional cash proceeds when the site is
developed.
It is the intention of the Board to maintain the level of the interim dividend
payment.
TT electronics believes it has maintained its market share and continues to
develop new, technically innovative products and consequently remains well
positioned for an improvement in its automotive and electronic component
markets. The group will continue its policy of closing unprofitable
manufacturing operations in higher cost locations. The recently acquired
company, Dage Limited is performing according to expectations and is an
important first step towards our strategic objective to manufacture TT
electronics' products in China.
John Newman, Executive Chairman, said today,
'Our group is adjusting to the needs of changing markets and is receiving
initial orders for our newly developed products which augurs well for the
future.'
For further information please contact:
TT electronics plc
John Newman, Executive Chairman: Tel: 01932 856 647
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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