TT IMS H1 Sales Down 26%
WEYBRIDGE, SURREY, UK -- TT Electronics reported a first-half loss on weakness in sales to the automotive and industrial sectors.
For the period ended June 30, revenue fell 19% to 237 million pounds ($390.7 million). The first-half adjusted pretax loss was 3.9 million pounds, down from a profit of 15 million pounds last year.
Sales at its IMS contract assembly unit were 38.5 million pounds ($63.5 million), down 26% from last year. The operating profit was 1.5 million pounds, down 59.5%.
The company has reduced its worldwide headcount by 21% in the past year, with 130 workers cut from its IMS group.
Inventory restocking is beginning even though new orders are slow, the firm said. "We are not seeing growth, but we are seeing a more stable and more predictable level of demand," chief executive Geraint Anderson said, Reuters reporter.
TT Electronics reiterated its 2009 sales forecast of 475 million to 485 million pounds.
During the period, the company reduced its net debt by 13 million points since Dec. 31, to 100 million pounds.
It is also refocusing its product mix to reduce its dependence on the automotive sector. That segment was 43% of sales last year, but the company has set a target of 25 to 30%.
Ed.: 1 GBP = 1.64857 USD
