Interim Management Statement

RNS Number : 7453S

TT electronics PLC

12 November 2013

 



12 November 2013

TT electronics plc

Interim Management Statement

TT electronics plc ("TT" or "the Group"), a global provider of performance critical technology solutions to leading manufacturers, issues this Interim Management Statement for the period from 1 July 2013 to date and is based on the trading results for the four months ended 31 October 2013.

Underlying sales for the four months to October 2013 were ahead of the prior period by 7.9% after excluding the effect of foreign exchange movement and the ACW Technology business acquired in December 2012.  Sales for the ten months to October on an underlying basis were up by 2.6%, reflecting the improving trading conditions following a slow first quarter. The order book has been growing steadily since March, with the ratio of orders to sales being greater than one.

The newly formed Sensing and Control business is building sales momentum as we focus on capturing increasing market opportunities through product innovation, offering broader capabilities to our customers and increased globalisation. We have secured a first win with a major Korea OEM, supplying pedal and power management electronic control modules. We have also won new business supplying control modules, system critical sensors and electronic pedals over the next 3 to 5 years with three major customers.

The implementation of the Operational Improvement Plan (OIP) announced in June has commenced. The Group has announced the transfer of sensor and resistor production from its facility in Fullerton, California to Mexicali, Mexico, the majority of which will be completed by the end of 2014. We have also announced the closure of our sales office in Japan, having concluded agreements with key third-party distributors. Both projects are part of the OIP which as set out previously will have a P&L investment of approximately £30 million, with efficiency benefits of approximately £8 million per annum from the second half of 2015.

The connectors and harnessing factory based in Smithfield, USA is being closed with specific product lines being transferred to the Integrated Manufacturing Services business in Perry, USA and to the Connectors business in Abercynon, UK. The investment in Romania for both the Sensing and Control and Integrated Manufacturing Services divisions is continuing, with production being scaled up for Sensing and Control and the factory fit-out being completed for Integrated Manufacturing Services.

Some of the benefits in 2013 of the line transfers from Germany for Sensing and Control have been lower than anticipated due to delays in obtaining the necessary approvals and supply chain issues, which have now been largely resolved.  As a result of these short-term issues the Group's performance for 2013 is anticipated to be within the range of expectations, although at the lower end.

The balance sheet remains strong with capacity to invest organically in the business through new product development and operational improvements, as well as through selective acquisitions within Sensing and Control to accelerate growth in target markets and expand our range of complementary technologies. We are making good progress on advancing acquisition opportunities.

Enquiries:

TT electronics plc Geraint Anderson, Group Chief Executive Shatish Dasani, Group Finance Director	Tel:  [phone]
Hudson Sandler Andrew Hayes/Wendy Baker/Katie Matthews	Tel:  [phone]

Note:

This statement contains certain forward-looking statements.  Such statements are made by the Directors in good faith based on the information available to them at the time of the announcement and they should be treated with caution due to the inherent uncertainties underlying any such forward-looking information.

 

END

 

 

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