TT to implement further efficiency measures

Announcing the company’s 2008 financial results today (16 March), group chief executive Geraint Anderson said that since completing last year’s strategy review, market conditions had become even more challenging, with less visibility of market demand. He said there had been a need to reduce the group's cost base, to increase the focus on growth businesses and to decrease exposure to the automotive market. He went on: “Since completing the review, market conditions have become even more challenging, with less visibility of market demand. While the traction, defence and aerospace markets are proving more resilient, we have experienced significant weakening in customer demand in our other major markets during the early part of 2009. Consequently, the restructuring action identified during the strategic review has been accelerated and further measures are being implemented.” During the year TT reduced its climate control activities, closed its facility in Romford transferring the majority of manufacturing to China and India and intends to cease manufacturing electronic systems for automotive climate control products “as soon as possible”. In January TT said it would be axing 1,295 positions but had now accelerated this programme with more than 1,100 jobs eliminated by the end of February and a further 225 underway in Germany. It now expected total headcount reductions to be higher, had implemented short-time working and temporary shutdowns across a number of sites and an extensive pay freeze was in place. In 2008, group revenue increased by 7% to £584.3 million (2007: £544.9m) due to foreign exchange and acquisitions, while pre-tax profit fell to £21.1 million (2007: £33.3m).