TT Electronics reiterates FY outlook, YTD revenues down 2%

TT Electronics said group revenues for the four months ended 30 April were down 2% year-on-year on an organic basis but were up 1% when stripping out the impact of pass-through revenues.

Book-to-bill in the period was "positive" at 102%, with "good performance" in the Europe and Asian regions. However, TT Electronics warned that de-stocking was continuing and was now expected to normalise during H2.

"This is impacting our shorter cycle component products, primarily in North America. We have taken cost action to offset the lower demand and as a consequence expect the H2 profit weighting to be more pronounced than normal," noted TT.

The London-listed group noted that expectations for the year as a whole remained unchanged and said the business "remains on track" to deliver 10% adjusted operating margins in 2024.

As of 1005 BST, TT Electronics shares were down 3.75% at 163.63p.

Reporting by Iain Gilbert at Sharecast.com