TT Electronics Aims to Lift Profitability Almost 50% by 2013
TT Electronics Plc (TTG), a U.K. maker of car sensors for Bayerische Motoren Werke AG and Volkswagen AG, expects to raise its profit margin by almost 50 percent by the end of 2013.
TT’s operating margin will reach 8 percent by the fourth quarter of 2013 compared with 5.4 percent at the end of the first half, up from 4.1 percent a year earlier, the Weybridge, England-based company said in a statement today.
“If you have got the right strategy and are in the right markets, most markets are still growing,” Chief Executive Officer Geraint Anderson said in a telephone interview. “There is still a lot for us to do internally in terms of self-help action.”
TT is focusing on growth industries including “high-end” automotive products, critical safety sensors, medical components and defense to boost profitability. It’s opening a new plant in eastern Europe and expanding in Mexico and China to meet demand, as well as closing a factory in North Carolina.
First-half net income surged 70 percent to 17.3 million pounds ($28.6 million), or 11.1 pence a share, from 10.2 million pounds, or 6.6 pence, a year earlier, TT said in the statement. Revenue rose 12 percent to 294.6 million pounds.
The shares fell 16.25 pence, or 10 percent, to 142 pence at the close in London trading, the biggest drop in three weeks, extending this year’s decline to 17 percent and paring TT’s market value to about 220 million pounds.
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