Volex half year profit tumbles, FY on track

Power cord maker Volex reported a drop in profit, in what it described as a challenging first half, however it remains confident of meeting full year expectations.

The electrical, digital and optical connections provider said pre-tax profit fell to $2.2m for the 26 weeks ended Sept 30th compared to $10.4m the same time a year earlier. Revenue for the period fell 8% to $249.3m.

Shares of Volex slumped almost 30% in September after Apple announced it was changing its component supplier for its new iPhone5. Apple accounts for almost a third of Volex's total revenues and its announcement forced Volex to issue a profit warning last month.

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Net debt fell to $4.6m from $11.9m a year earlier while the interim dividend has been increased to 2 cents from 1.5 cents the year before.

CJ