8th Jul 2005 07:00
TT electronics PLC08 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 of2004, having benefited from the profit on the sale of the Gravesend property andafter incurring closure costs. At its AGM in May, TT electronics announced thatthe slowdown in the automotive markets had resulted in less buoyant trading.Whilst the electrical sector continues to perform well, the group continues toexperience reduced demand from its automotive customers and the electroniccomponents market is currently disappointingly flat. As a result, the underlyingprofit from trading is below last year's excellent results. The closure of the Gravesend cable operation is proceeding according to plan andthe group will further benefit from additional cash proceeds when the site isdeveloped. It is the intention of the Board to maintain the level of the interim dividendpayment. TT electronics believes it has maintained its market share and continues todevelop new, technically innovative products and consequently remains wellpositioned for an improvement in its automotive and electronic componentmarkets. The group will continue its policy of closing unprofitablemanufacturing operations in higher cost locations. The recently acquiredcompany, Dage Limited is performing according to expectations and is animportant first step towards our strategic objective to manufacture TTelectronics' products in China. John Newman, Executive Chairman, said today, "Our group is adjusting to the needs of changing markets and is receivinginitial orders for our newly developed products which augurs well for thefuture." For further information please contact: TT electronics plcJohn Newman, Executive Chairman: Tel: 01932 856 647 BiddicksZoe Biddick Tel: 020 7448 1000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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