WOKING, ENGLAND -- TT Electronics will take restructuring charges of $22.9 million to counter a 14% drop in organic revenues in the first five months of 2020.

The charges, restructuring costs and capital expenditure, are expected to save the company up to $15 million a year starting by 2023.

Sales were down 11% in the first quarter due to Covid-19 disruptions, but the disruption peaked in April and has been showing sequential recovery in revenue since.

The company had to temporarily shutter component sites in Mexico, Malaysia, Barbados and Tunisia so far this year.

"The overall situation is now improving as government restrictions ease, with all TT facilities open, and the number of employees in self-isolation reducing," the company said.

Bookings through May were broadly in line with the prior year.

"Full-year run rate benefits from these projects will be £11 million to £12 million ($14 million to $15 million) in 2023, with initial benefits in 2020 and 2021 helping to mitigate the demand slowdown in certain end markets and protect the group's margin improvement plans," the company said.

TT Electronics' integration of Power Partners has been completed.

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