By Najat Kantouar
TT Electronics shares tumbled after the company said it expects a noncash impairment of up to 35 million pounds ($44.2 million) in North America due to falling components demand and operational challenges.
In early European trading, shares were down 10.60 pence, or nearly 13%, at 73.40 pence. Year to date, share have fallen 49%.
The electrical-solutions manufacturer said Tuesday that it expects the noncash accounting impairment of goodwill and fixed assets to be booked with full-year results. It also expects the prior-year results to be adjusted by up to 6 million pounds relating to its Cleveland site.
The improvement plan for Cleveland is underway but the benefits will take longer to generate than originally anticipated, it added.
The company also anticipates adjusted operating profit for 2024 to be 40 million pounds to 46 million pounds. In September, it provided a consensus of 55.4 million pounds, within a range of 54.0 million to 56.8 million pounds.
TT Electronics continues to target a 12% adjusted operating margin over the medium term to be reached after 2026.
Write to Najat Kantouar at najat.kantouar@wsj.com
(END) Dow Jones Newswires
February 25, 2025 03:23 ET (08:23 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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