TT continues with low cost strategy

In an interim management statement, the automotive, defence, aerospace, telecommunications, computing and industrial electronics markets supplier said its first half results would include losses incurred in high labour cost operations prior to manufacturing transfers, together with costs associated with reorganisations. At the company’s annual meeting, chairman John Newman said overall conditions in TT electronics' markets as a whole were similar to 2007, except that business in the North American market was slower. The US automotive sector was also being adversely affected by industrial action at a major parts supplier. Looking at the period from January, Newman said TT’s businesses had been strengthened by the approval of “a major German automotive customer” to start volume production of the company’s Autopad accelerator pedal product; the £4.2 million acquisition of New Chapel Electronics; and the winning of a major US defence contract for interconnection systems worth $90 million over five years. Newman said although results for the first half year would be lower than in the corresponding period in 2007, the company’s board continued to have confidence in the future prospects of the business.