• Trading in line for first four months of 2012
• Strong order intake
• Closure of Boone factory on track
Sensor and electrical components company TT Electronics has reported revenues in line with last year, despite being up against tougher comparatives as 2011 sales were buoyed by demand resulting from the Japanese earthquake. Moreover, orders have been strong, too, which provides visibility for a strong second half performance and gives support to the 30 per cent earnings growth analysts are factoring into their 2012 EPS estimates of 17.3p.
The closure of TT's components factory in Boone, North Carolina remains on track with production being transferred to Mexico by the final quarter of the year. Also, the new Romanian plant will start production in June. These developments, and ongoing expansion in China, will deliver benefits from 2013 when analysts expect operating margins to hit 7 per cent, up from 5.8 per cent in 2011, and EPS to rise a further 13 per cent to 19.6p.
