TT Electronics (TTG) lost almost a third of its value after warning that full-year profits for this year and the next will be lower than predicted. The electronics firm revealed that a lag in moving production to low-cost sites, issues in its sensor business, weak order intake in Europe and delays in shipments to two key customers brought group performance to the “lower end” of market expectations.
TT launched its operating improvement plan last year to cut operations in Europe, yet the benefits now won’t be felt until 2016. What's more, at £3.5m projected savings will be £2.5m less than initially expected as unions in Germany forced through fewer job transfers to Romania. Numis Securities expects pre-tax profit of £19m in 2015 (down from £33million), giving EPS of 9.2p.
