TT Electronics hits European headwinds

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Economic headwinds in Europe and concerns of a slowdown in China have weighed on first-half revenues at TT Electronics, the maker of emission controls, electric vehicle components and sensors for carmakers.

Fears of further eurozone weakness prompted some of TT’s customers to delay big orders for parts.

The news led analysts at Numis to cut their full-year revenue forecast for TT by 9 per cent to £553.2m on lower volume assumptions.

The group has responded by stepping up its cost cutting programme, as well as moving production to lower-cost locations such as Romania and Mexico.

Trading on a forward p/e of 8, the shares are cheap and worth considering.

Mark Wembridge

Six months to June 30% change
Sales£271.2m-3.7
Pre-tax profit£12.5m-40
EPS10.6p-46
Dividend1.5p+25
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