Tt Electronics Regulatory News (TTG)

12 Dec 2007 16:51

TT electronics PLC12 December 2007 TT electronics plc Trading Update TT electronics, a world leader in sensor and electronic component technology,confirms that trading for the current financial year is anticipated to bebroadly in line with market expectations. The adverse effect of the translationof US dollar profits due to the weakness of the US dollar has had a major impacton profitability. The group's sensor and systems business continues to perform satisfactorily withstable demand from the German automotive market for sensors, but downwardpricing pressure on climate control systems has resulted in a reduction inrevenue and margin. The group expects the revenue from climate control systemsto reduce significantly in 2008 as programmes come to an end and are notreplaced. The electronic component operations in the USA have suffered from reduceddomestic demand due to overall softness in the market particularly in theautomotive sector. New products being developed and coming on stream, coupledwith the recent investment in our thin film resistor operation in Texas which isnow nearly complete, will give improved opportunities for growth in 2008. The electronic manufacturing services businesses have had a stronger second halfperformance and have good prospects for 2008. Margins have improved followingthe resolution of start up problems in Malaysia earlier this year and areexpected to improve further in 2008. The electrical businesses, which mainly operate in the growth markets of defenceand secure power, continue to produce good results. TT electronics maintains a robust balance sheet and a prudent level of gearing.However, anticipated softness in the US market, the reduction in revenue fromclimate control systems and the cost of further transfers of manufacturing tolow cost economies are all anticipated to have an impact on performance in 2008.The Directors therefore believe that 2008 will be challenging but are of theopinion that the results for next year will be at a similar level to 2007. For further information please contact: TT electronics plcNeil Rodgers, Chief Executive Tel: 01932 841310 BiddicksZoe Biddick Tel: 020 7448 1000 This information is provided by RNS The company news service from the London Stock Exchange