4th Nov 2014 08:23
LONDON (Alliance News) - TT Electronics Tuesday said full-year earnings are expected to be at the low end of market forecasts and materially lower in 2015 as the company implements a review of its business, sending shares sharply lower.
In morning trade, the shares were down 30% at 113 pence.
Underlying revenue growth in the 10 months to October was 3% compared with the same period last year, excluding currency movements and the effects of new acquisitions, despite weaker order intake in Europe. Still, the company said its performance continues to be affected by delays in implementing improvements to its operations.
The electronics supplier is transferring some operations to lower cost sites in Romania from Germany in a bid to improve competitiveness and lower overheads, a move that is now expected to cost GBP24 million and save around GBP3.5 million, down from previous estimates of GBP25 million and GBP6 million, respectively.
At the same time Chief Executive Richard Tyson is conducting a comprehensive review of the business and has identified a number of issues that are impacting performance, particularly in its Sensors business, the company said. It is also reviewing its product portfolio and investment levels, including research spending.
The company said it expects an improvement in working capital in the second half of the year.
By Ian Edmondson
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