Volex Regulatory News (VLX)

10 Mar 2008 07:44

Volex Group PLC10 March 2008 10 March 2008 Volex Group plc Trading Update Volex Group plc, the global electrical and electronic cable assemblies company,is providing a further update on recent trading for the year ended 30 March2008. During recent weeks, we have seen a decline in order levels and customers'revenue forecasts, in particular in the Wiring Harness division and in the NorthAmerican Power Products market. In addition, we are continuing to incur higherthan expected costs in Wiring Harness as noted in our announcements of 29January and 15 February. In Interconnect, caution amongst some of our customers has seen some delays tothe award and ramp up of new programmes. We remain confident that we will seefurther revenue growth from this division in the next financial year as ourfocus on expanding our technology offering to key customers gains momentum. As a result of the lower than expected order levels, trading since our lastupdate has deteriorated further and we do not now expect to be profitable in thesecond half of this financial year. We are cautious about the outlook for the coming financial year. We expect tobenefit from our strategy of gaining market share with existing key customersand make further progress in focussed revenue growth. However, there remainsuncertainty over future impacts of volatile commodity prices, in particularcopper and oil, and in global consumer demand. Volex Group plc 01925 830 101Heejae Chae, Group Chief ExecutiveIan Degnan, Group Finance Director This information is provided by RNS The company news service from the London Stock Exchange