Volex names Eisenhardt CEO, restructuring on track

Shares of Volex rallied almost six per cent on Tuesday after it confirmed that Christoph Eisenhardt will succeed Ray Walsh as Chief Executive Officer and said restructuring initiatives were on track.

The electrical, digital and optical connections provider said Walsh will step down as of July 1st 2013.

Commenting on Eisenhardt's appointment, Chairman Mike McTighe said: "He has an outstanding track record in building businesses with similar characteristics to Volex into global leaders in their chosen markets. The Board is confident that under his leadership Volex will realise its full potential."

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Eisenhardt was most recently Chief Executive of Switzerland's KVT Koenig.

In a separate statement the group revealed operating profit of $4.2m for the financial year ended March 31st 2013 from $23.0m the same time a year earlier. Revenue fell to $473.2m from $517.8m before.

Volex said the results are in line with revised guidance as its restructuring initiatives proceed to plan.

Diluted earnings per share for fell to 11.2 cents from 42.4 cents. Gross margin reduced to 18.0% from 19.8%.

The group recorded net debt of $19.5m at end of its financial year compared to net cash of $3.6m a year earlier.

A final dividend of 3.0 cents per share declared, bringing total dividend to 5.0 cents compared to 4.5 cents for 2012.

Volex said its restructuring initiative is expected to deliver around $17.5m annualised savings from the full year 2014 at a cost of $7.2m. Further cost reduction opportunities are under consideration, it said.

Shares of Volex rose 5.95% or 4.50p to 98.00p at 11:20 in London.

CJ