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BUZZ-Electrocomponents Plc: Down as gross margins decline

Wed, 11th Feb 2015 09:01

** Electrocomponents Plc's shares fall as much as3.5 pct after co says YTD gross margins shrank 1.3 pct points vslast year

** Co blames FX pressure and faster growth of lower marginproducts and regions

** Co said in November that H1 gross margins declined by 0.7percentage points, hurt mainly by increased discounting in theUK and Asia Pacific

** "It does appear that the incremental hit on GM isprimarily due to mix. The discounting in Asia Pac and the UK isstill an issue and appears to have had a further 10bp effect,while FX appears to have cost around 20bp." RBC Capital Marketsanalysts said

** Co reports 5 pct rise in underlying sales for four monthsJan. 31.

** Rival Premier Farnell Plc said in November thatFY operating margins would be slightly below prior year levelsas it experienced softer trading conditions in Asia and Europe. (Reuters Messaging:noor.hussain.thomsonreuters.com@reuters.net)