VEHICLE component maker TT Electronics reported a 12.7 per cent fall in profits yesterday, which the company put down to a “challenging market” as orders for car parts suffered.
However, the company, which makes components such as pedal sensors for vehicles, medical equipment and aircraft, said it had seen improved trading at the start of 2013 and was confident of growth during the year.
TT Electronics said pre-tax profits fell from £26.8m in 2011 to £23.4m last year as sales fell by 6.4 per cent to £476.9m.
The group put the fall down to challenging market conditions, the strengthening of the sterling against the Euro and its exit from less profitable projects.
TT Electronics, whose customers include Volkswagen and BMW, has outlined a plan to focus on its core businesses, selling some of its more niche departments. It is also expanding in Mexico, Romania and India this year, and plans to expand with a new sensing and control business.
The company said yesterday it plans to increase its final dividend by 13.6 per cent to 5p per share and despite the fall in profits, shares closed up more than four per cent at 8p per share.
“We will combine our existing capabilities to create a Sensing and Control business and focus investment to capture increasing market opportunities and drive value for shareholders,” chief executive Geraint Anderson said.