Electronics Production | March 16, 2009
TT electronics affected by recession
TT electronics' performance was noticeably affected by the global economic recession from mid-September. For the year, the Group's turnover was £584.3 million (2007: £544.9 million), with the increase due to foreign exchange and acquisitions, producing operating profit before exceptional items of £27.0 million compared with £37.7 million in 2007.
Finance costs were £5.9 million net (2007: £4.4 million) which comprised £4.1 million of banking and finance interest (2007: £4.5 million) and £1.8 million relating to pension fund accounting (2007: £0.1 million credit). Profit before tax and exceptional items was £21.1 million compared to £33.3 million in 2007. The underlying taxation charge of £6.8 million (2007: £9.3 million) represents an underlying rate of 32 per cent (2007: 28 per cent). Exceptional items relating to the closures of the AB Automotive factory at Cardiff and the AB Electronic facility at Romford were £3.8 million. Headline earnings per share from continuing operations were 9.2 pence compared with 15.5 pence in 2007. During the year the Group acquired two companies supplying the aerospace and defence industries. In April 2008 we purchased New Chapel Electronics for an initial cash consideration of £4.2 million and deferred consideration capped at £1.0 million. New Chapel Electronics, based at Fairford, Gloucestershire, is a manufacturer of wiring harnesses and connectors for the aerospace and military industries. In August 2008, TT electronics acquired assets comprising the majority of the business of Semelab Limited for £9.7 million. The business, based in Lutterworth, Leicestershire, designs and produces specialised radio frequency and power modules, semiconductors, optoelectronic components and power microcircuits and modules. During the year costs were incurred in reducing our climate control activities, and closing our facility in Romford, which are reported as exceptional items. TT electronics intends to cease manufacturing electronic systems for automotive climate control products as soon as possible. The Group also announced the closure of their sensor factory in Romford, with the majority of manufacturing transferred to facilities in China and India. The Group is reducing its exposure to the automotive sector progressively. At 31 December 2008 the Group's net indebtedness was £113.2 million compared with £75.0 million at the previous year end. The borrowings were affected by the acquisition of Semelab and New Chapel Electronics, the fall in sterling against the US dollar and the euro, and the Group's payment of an additional £2.2 million into the pension scheme. The Group's indebtedness remains comfortably within the terms of its committed banking facilities. With our operations and net assets overseas, principally in the US, Europe and the Far East, the adverse movement in sterling has strengthened the balance sheet. Despite the current difficulties of the market, the strengths of the company's worldwide activities will enable TT electronics to manage the business through this recession and give TT electronics the opportunity to come out of it as a stronger group.
iBeam nabs start-up grant for MicroLED technology The New Mexico Economic Development Department announced that iBeam Materials Inc. is a recipient of one of five business start-up grants to science and technology companies.
New and expanded SoCal HQ for Relativity Space Relativity Space has secured a 120,000 sq. ft. space in Long Beach, California, to serve as the company’s business operations headquarters and manufacturing facility of its 3D printed rocket, Terran 1, and Aeon launch engines.
Huawei targets France for first European production plant Huawei says that it will build a new wireless communications product factory in France. The highly automated factory will focus on 4G and 5G equipment, and will primarily manufacture supplies for European customers.
IMI’s 2019 results strained by the weak market environment Integrated Micro-Electronics, Inc. (IMI) achieved revenues of USD 1.3 billion in 2019, a 7% decline versus 2018.
North American PCB industry sales down 5.2% in January Total North American PCB shipments in January 2020 were down 5.2% compared to the same month last year.
Covid-19 forces Italian EMS to shut down plant Italian EMS provider MTA, a designer and manufacturer of electronic and electromechanical components for the automotive industry, has been forced to close its Codogno production plant following regulations set by the Italian Minister of Health.
Ericsson to close European offices amid virus outbreak The Swedish telecom company is shutting down three offices in three different European countries after one of its employees in Croatia tested positive for the novel Coronavirus.
Advanced Energy's manufacturing facility in Penang is operational Advanced Energy Industries expands its footprint with new facility in Penang, Malaysia to serve semiconductor and industrial customers.
FCA revs up support for the Motor City Fiat Chrysler Automobiles has released details on its planned expanded presence in Detroit, including the first new assembly plant within the city limits in almost three decades.
Apple issues revised ‘revenue guidance’ for March Apple has stated they do not expect to meet the previously announced revenue guidance for March quarter due to two factors associated with the COVID-19 global outbreak.
Lucid inks battery partnership with LG Chem Silicon Valley-based EV maker Lucid has finalized a partnership with LG Chem that will supply battery cells for standard versions of the Lucid Air through 2023.
Sono Motors to cooperate with Valoe on solar solutions Finnish technology company, Valoe Oyj, has signed a cooperation agreement with the Munich based Sono Motors GmbH to become a Technology Partner for the integrated solar components of the Sion, a Self-Charging electric car with solar integration.
Incap's 2019 revenues climbed 20% The Finnish EMS provider is entering its fiscal year 2020 on the back of a solid performance during 2019.
IPC survey: COVID-19 major cause of concern In a recent survey of electronics manufacturers and suppliers conducted between February 11-16, results released by IPC yesterday showed overwhelmingly that most “are concerned about the impacts COVID-19 will have on their business operations.”
Upgrades boost output for U.S. appliance maker GE Appliances has completed work on a USD 125 million factory upgrade to its refrigeration plant in Decatur, Alabama, which has included the installation of smart factory 4.0 technology.
TTM Technologies Inc. expands in Wisconsin TTM Technologies Inc. celebrated the grand opening of a new North American advanced technology center in Chippewa Falls.
Panasonic to exit US solar manufacturing Panasonic says it will begin to wind down U.S. production of photovoltaic cells and modules at Gigafactory New York in Buffalo, New York.
Techsil acquires adhesive supplier Glueline Adhesive and sealant supplier Techsil has announced that it has acquired Essex based adhesive stockist and distributor Glueline Ltd.
Neways 2019 turnover up while result is down While the company’s net turnover made positive developments during the business year 2019, Neways’ bottom line shows a sharp drop.
Jabil cuts outlook in wake of virus outbreak EMS provider Jabil expects that the COVID-19 outbreak will have a negative impact on the second quarter of fiscal year 2020, relative to the company's previously set guidance.
Umicore starts construction in Poland The company has held a groundbreaking ceremony for the construction of its new cathode materials production plant in Radzikowice in Nysa in south-western Poland.
Swedish EMS provider expands with Finnish acquisition Swedish EMS provider Inission has signed an agreement to acquire 100% ownership of the Finnish manufacturer HY-Tech Comp Oy (HY-Tech).
Silfab Solar expanding, adding jobs in Washington The Washington State Department of Commerce and Port of Bellingham have announced that Silfab Solar will be expanding its operations in Bellingham.Load more news