LONDON (ShareCast) - TT electronics said it was on track to meet annual expectations as the company made a good start to the year with a sales increase of 2.5 per cent on a constant currency basis.

The group - which supplies technology to manufacturers - reported strong trading results in the four months to April, driven by the performance of newly acquired ACW Technology.

However, underlying sales fell 2.6% as a result of difficult market conditions and less orders during the last quarter of 2012. Orders have improved over the first four months of the year.

The company added that it has experienced increasing demand for intelligence and control in transportation and industrial manufacturing.

TT electronics is working to form a Sensing and Control business by combining its sensor capabilities with its power management and control unit.

"This will develop our core strengths with the potential to deliver significant growth through enhanced market access and increased innovation," the firm said in a statement.

In the statement, the company also said there was further scope to improve margins by expanding established lower cost manufacturing locations in Mexico, India, China and Romania.

Implementation of the new structure will be complete by the beginning of June.

The balance sheet remains strong with capacity for investments in new product developments, operations and acquisitions, TT electronics concluded.

Shares fell 0.14% to 173.75p at 13:47 Thursday.

RD

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