TT Electronics shares plunge on warning over US hit
The Woking-based manufacturer said it was preparing to book a write-down of up to ?35 million in its under-pressure US business.
TT Electronics has seen its shares tumble after warning over a hit of up to ?35 million in the US due to slumping demand and ongoing operational woes.
The Woking-based manufacturer said it was preparing to book the write-down due to the “previously disclosed downturn in components demand and operational execution challenges in North America”.
It also revealed a ?6 million adjustment to previous year results relating to its Cleveland site.
Shares plunged as much as 16% at one stage in Tuesday morning trading before settling around 10% lower.
TT Electronics said: “We will provide further details on the outlook for 2025 at the time of our results announcement.
“We continue to expect good adjusted operating profit progress relative to 2024 but expect the outturn to be in the range of ?40 million to ?46 million.”
TT Electronics warned in November that annual earnings for 2024 were expected at the lower end of its guidance for between ?37 million to ?42 million.
TT Electronics engineers and manufactures products to support sectors from healthcare to aerospace, with customers including BAE Systems and Thales, and factories and offices in the UK, North America and Asia.
The profit alert comes just a few months after an aborted takeover attempt for TT Electronics from Lord Nat Rothschild’s Volex group.
Volex, a company specialising in providing power products for equipment like hospital ventilators, electric cars and laptops, said in November last year it had submitted two takeover proposals.
The last valued TT Electronics at ?248.6 million, equivalent of 139.6p per share, but Volex scrapped takeover plans for its smaller rival after the approach was rejected for being too low.
The tilt followed sharp falls in TT Electronics’ share price, which last November hit its lowest level since around 2014.
TT Electronics warned investors in September about production issues at its US factories which are set to drag on yearly sales and profits.
It said a string of orders in its American components business had been pushed into 2025, rather than for 2024 delivery, which would hit earnings within its North American division.
On Tuesday, it said the improvement plan for Cleveland was under way but that the benefits would take longer to bear fruit than first expected.