Automotive slowdown hits TT Electronics

At its AGM in May, TT electronics announced that the slowdown in the automotive markets had resulted in less buoyant trading. Whilst the electrical sector continues to perform well, the group continues to experience reduced demand from its automotive customers and the electronic components market is currently disappointingly flat. As a result, the underlying profit from trading is below last year's excellent results. The closure of the Gravesend cable operation is proceeding according to plan and the group will further benefit from additional cash proceeds when the site is developed. It is the intention of the Board to maintain the level of the interim dividend payment. TT electronics believes it has maintained its market share and continues to develop new, technically innovative products and consequently remains well positioned for an improvement in its automotive and electronic component markets. The group will continue its policy of closing unprofitable manufacturing operations in higher cost locations. The recently acquired company, Dage Limited is performing according to expectations and is an important first step towards our strategic objective to manufacture TT electronics' products in China. John Newman, Executive Chairman, said, "Our group is adjusting to the needs of changing markets and is receiving initial orders for our newly developed products which augurs well for the future."