Last checked at 25 Jul 2017 11:14
25 July 2017
Volex plc
AGM and Trading Update
Volex plc ("Volex"), one of the world's largest manufacturers of premium power cord and harness assemblies, is today holding its Annual General Meeting during which the Chairman will make the following statement on trading for the three months ended June 2017:
"I am pleased to report that trading for the first quarter has been in line with our expectations. Profitability has improved in the first quarter of FY2018 versus the prior year, as we enjoyed lower operating expenses as a result of actions taken to reduce costs over the last year.
We have continued to add a number of new customers in North America. The growth we are experiencing has presented some operational challenges at our Mexico facility, as we invest in additional staff and raw materials to satisfy our customers' requirements. We expect to be able to address these challenges during the second quarter.
As reported on 8 June we are seeking new end-markets to diversify our Power Cord customer base at our Shenzhen facility and I am pleased to confirm that we are now shipping products to a key manufacturer of electric cars and look forward to supporting them with the launch of a new model later this year.
We believe our cost reduction measures and ongoing operational improvements should allow us to maintain gross profit margins at a similar level in the year ahead despite commodity price increases. At the time of writing this statement we note some adverse currency movements affecting our labour costs as well as commodity price inflation. Despite these risks, I am confident in Volex's ability to continue to make revenue progress and deliver further value to our shareholders.
Finally, I would like to thank our employees across the globe for their dedication, commitment and hard work, as we improve our competitiveness and profitability."
For further information please contact:
Volex plc
Nat Rothschild, Executive Chairman +65 6788 7833
Daren Morris, Group Chief Financial Officer +44 208 017 3232
Forward looking statements
Certain statements in this announcement are forward-looking statements which are based on Volex's expectations, intentions and projections regarding its future operating performance and objectives, anticipated events or trends and other matters that are not historical facts. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'targets', 'goal' or 'estimates'. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, by way of example only and not limited to, general economic conditions, currency fluctuations, competitive factors, the loss of one of our major competitors, failure of one or more major suppliers and changes in raw materials or labour costs among other risks. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, Volex undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.