TT electronics lower sales

The sensor business continues to be successful and new product ranges have been well received. The electrical division performed strongly and the Mexican power system operation expanded to meet increased demand. The elimination of loss making operations during 2005 will provide a platform for improved future profitability. The group generated cash from operations of £49.6 million (2004: £53.9 million) and gearing at the year end improved to 31 per cent (2004: 40 per cent). The acquisition of Dage Limited, which has performed well ahead of expectations, provides TT with a facility in China where they are manufacturing for the Chinese and other worldwide markets. John Newman, Executive Chairman, said today: "TT electronics has emerged from a year of consolidation during which we have eliminated certain loss making businesses. "We are encouraged by the strong performance in China - an operation which we have already expanded. This enables us to continue the transfer of our manufacturing to a lower cost environment and provides access to the rapidly growing Chinese market. TT electronics now employs 38 per cent of its total global workforce in low cost economies. "We remain focused on the global markets for sensors and electronic components which are expected to show sustained long term growth. We continue to drive technological innovation as evidenced by the introduction of our range of Autopad ® inductive sensors and light emitting displays. These have been well received by our customers and we expect them to provide future growth. TT electronics is in good shape to make further acquisitions and has started 2006 with a strong order intake." Click here to download the full annual report (PDF).