Electrocomponents suffers after US growth hurt by poor weather

Oliver Smith
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BRITISH electronic parts supplier Electrocomponents saw its shares dive 4.86 per cent after it said its north American sales growth had been hurt by freezing weather conditions in December and January yesterday.

The FTSE 250 firm sells and distributes electronic components and reported underlying sales growth of two per cent during the four months to 31 January in its interim management report.

“Group sales growth during the four-month period was around two per cent, compared to one per cent sales growth in the first half,” said Electrocomponents group chief executive Ian Mason.

“All regions have delivered improving sales trends as compared to the first half with the exception of North America, which was significantly impacted by adverse weather conditions during December and January,” added Mason.

Numis analyst Steve Woolf said on the results, “We maintain a view that on a long-term basis both Electrocomponents and Premier Farnell face significant structural headwinds. We would look to buy into today's share price weakness, and raise our rating to Add from Hold.”

Electrocomponents share price closed at 252.4p following the news.