TT Electronics trims full year guidance

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.

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"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.