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Investing.com -- Shares of TT Electronics (LON:TTG) fell more than 6% on Monday after the company reported a 5.5% decline in revenue and announced plans to shut down its Plano, Texas operations as part of a strategic realignment.
In a trading update released ahead of its annual general meeting, the company said group revenue fell during the reporting period compared to the prior year, citing ongoing challenges in Asia and North America. Strength in the European market partially offset the declines.
The group reported a book-to-bill ratio of 101%, supported by demand from aerospace and defence customers.
However, the update cited continued weakness in North America and customer uncertainty around tariffs in Asia as ongoing pressures on order activity.
TT Electronics confirmed that the Components business, which includes operations in Plano, Texas; Juarez and Mexicali, Mexico; and the resistors segment of its Bedlington, U.K. site, will be managed separately.
The company said the Plano facility would close by the end of 2025. The Texas site delivered £5.7 million in adjusted operating profit in 2024 before group recharges.
The company said it will continue to support customers, employees and suppliers through the closure process.
Separately, TT Electronics said it is continuing to implement its operational improvement plan in Cleveland, Ohio, with an emphasis on contract profitability and manufacturing efficiency.
The company noted that achieving full benefits from the plan would require both higher manufacturing volumes and productivity gains.
The company said the aerospace and defence segment remains strong but cited broader uncertainty in other areas due to the market environment.
TT Electronics reaffirmed its full-year adjusted operating profit guidance, which was last updated in April, in the range of £32 million to £40 million.
The most recent company-compiled consensus places expected adjusted operating profit at £34.7 million for the year ending December 2025.
Net leverage is expected to be slightly above 2x, which the company attributed to the forecast second-half weighting of profits and cash flow.
An update on the appointment of a permanent chief executive officer is expected in the coming months.
“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,” said Eric Lakin, acting chief executive officer in a statement,