Volex First-Half Profit Rises Sixfold on Sales Growth
Volex Group Plc, a U.K. maker of electrical cables for products that include Apple Inc.’s iPhone, posted a sixfold increase in first-half profit as it added more customer accounts and demand from Asia increased.
Volex posted net income of 5.49 million pounds ($8.8 million) for the 26 weeks ended Oct. 3 compared with 0.92 million pounds for the same period a year earlier, the Warrington, northern-England based company said in a statement today. Revenue climbed 43 percent to 157 million pounds.
“The aim for this year was to return to growth, and I think it’s clear we’ve done that,” said Chief Executive Officer Ray Walsh in a telephone interview. “We’ve kept a very close eye on costs and efficiency, and pared down the number of factories we have.” Volex has closed about 20 factories over the past decade, he said.
Volex plans to expand in all of its geographical markets except India where delays in awarding 3G licenses and increased security clearance imposed by the Indian government limited growth in the first half, said the company.
The shares dropped 2 pence, or 0.7 percent, to 285 pence at the 4:30 p.m. close in London, giving the company a market value of 162 million pounds.
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