TT Electronics, the components, sensors and integrated manufacturing services provider, managed the unusual feat of issuing a mild profit warning and seeing its share price rise.
The group said global market conditions continued to deteriorate in recent weeks, with order intake slowing down and some key customers postponing call-off orders (orders placed as part of a blanket contract covering a given time period).
Consequently, sales at constant exchange rates for the first nine months of 2012 were less than 3% below last year and the group's trading performance for the full year is now expected to be marginally below the board's previous expectations.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Whilst current market conditions are slowing the rate of margin progression, we remain confident that our strategy will drive the improvement in margins to the stated targets," the group's statement said.
With market conditions looking like they will remain subdued for the foreseeable future, the group is concentrating on "self-help" measures to reduce costs, while investing in the business.
In mid-morning, shares of TT were 2.5p above Monday's closing price of 118p, having fallen to a 52-week low of 112.25p earlier in the morning.
-
Should you invest in UK equities?The FTSE 100 hit a record high this week, but UK equities remain unloved and undervalued compared to their global and US peers. Should you snap them up at a discount?
-
State pension errors: DWP urged to check for mistakes among divorced peopleFormer pensions minister Steve Webb says there are a high number of divorced women on low state pensions. Now MPs want the DWP to check if there were any errors in “potentially underpaying men and women who are divorced”.
