TT Electronics sales fall as clients deferring orders after new US tariffs

Daily Mail​

5 hours ago

Components manufacturer TT Electronics has seen sales slip in response to uncertainty over recently imposed US tariffs.
The Woking-based firm's organic revenue shrank by 5.5 per cent in the five months ending May, with a 'strong performance' in Europe outweighed by headwinds in Asia and North America.
Yet its book-to-bill ratio - a measure of orders received compared to units shipped and billed - totalled 101 per cent thanks to demand from the aerospace and defence industry in Europe.
Any number above 100 means more orders are received than filled, indicating high demand.
NATO members in Europe have vowed to increase military expenditure in the coming years amidst pressure from the United States, the Ukraine war, and China threatening to invade Taiwan.
TT's defence industry customers have included BAE Systems and French firm Thales, which are set to be major beneficiaries of the surge in spending.
Eric Lakin, acting chief executive of TT, said: 'We remain resolutely focused on operational delivery of customer contracts, building the order book, continuous efficiency actions, and driving overall performance across the business to maximise shareholder value.'
Lakin was TT's chief financial officer until he took over as CEO from Peter France in April, when the latter quit after just 18 months in charge.
At the same time, TT warned that uncertainty resulting from US President Donald Trump's tariffs would dampen its profits this year.
Trump has imposed a baseline 10 per cent levy on most US goods imports, as well as a 25 per cent tariff on many cars and vehicle parts, and a 30 per cent tax on Chinese-made products.
The tariffs have heightened economic volatility worldwide, leaving many UK manufacturers heavily reliant on US sales seriously worried about their future.
TT told investors on Monday that some Asian clients had deferred US orders because of tariff-related uncertainty.
'The Aerospace and Defence sector remains strong in the current climate, it added. 'Elsewhere, the Board remains mindful of the uncertainty created by the continued challenging market backdrop.'
TT also announced the closure of its site in Plano, Texas, which recorded a £5.7million operating loss last year, following a strategic review of its components business.
Begun in 1867 as Tyzack Sons & Turner, TT Electronics makes components for a wide variety of sectors, including defence, aerospace, and healthcare.
TT Electronics shares were 1.1 per cent down at 110p on late Monday afternoon, taking their losses over the past year to around a quarter.