17th Nov 2015 09:22
LONDON (Alliance News) - Engineered electronics manufacturer TT Electronics PLC on Tuesday said trading in the first ten months of 2015 was in line with its expectations, despite a decline in sales.
TT said its organic, constant currency sales were down 3.0% in the ten months to the end of October, of which 2.0% is attributable to the large orders secured in 2014 for its industrial sensing and control and advanced components divisions not repeating.
In addition to that, general industrial markets were generally weaker in the third quarter, hitting TT's shorter cycle business and leaving its order book marginally lower year-on-year.
TT added it is making progress on its operational improvement plan and said the cost of the programme will now be around GBP5.0 million less than originally anticipated. That cash will be deployed to cut costs in its shorter cycle industrial market-facing business.
"General industrial markets have become weaker in recent months, and we therefore remain cautious about market conditions. Whilst there has been some softening in our shorter cycle businesses, notably in Advanced Components, this is being offset by earlier realisation of benefits from the Operational Improvement Plan and our outlook for the full year is unchanged," said Chief Executive Richard Tyson.
Shares in the company were up 0.4% to 130.00 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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