TT electronics Plc Business Report up until FY ended Dec. 31, 2011
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-Revenue from continuing operations increased by 6.4% after including an adverse foreign exchange impact. Excluding this foreign exchange impact, the underlying growth in revenue was 7.2%, against the Company's target of mid to high single digit growth.
-The passenger car market remained the largest segment for the Group representing 35% of revenue due to strong demand from Daimler, BMW and Volkswagen and from customers in emerging markets. The Company remains committed to reducing this to below 30% of Group revenue in the medium term by growing our business in other areas more rapidly.
-Revenue from other transportation markets, including trucks, buses and off-road vehicles grew by more than 37%.
-Revenue for the year increased by 4.9% excluding an adverse foreign exchange impact of 1.4%. This is due to the several contracts won with new customers in China during the year, doubling the number of local sales.
-Revenue for the year increased by 14.9%, excluding a foreign exchange benefit of 1.4%, and the Company grew sales in Europe, Asia and North America.
-The Company are responding quickly to global opportunities, actively transferring sensor expertise developed over many years in Germany and the UK to its teams in China, India and Mexico. These teams re-package its core technology, developing customised solutions for the local market. Growing its business in the Americas and Asia remains a key strategy and the Company secured wins with several of the leading Chinese manufacturers during the year, including JAC, Chery and BYD and continued to strengthen its relationship with Mahindra and Tata in India.
Contracts-In 2011, the Company achieved strategic wins with BMW, Daimler and Volkswagen. These included its nomination as a key sensor partner for Volkswagen's latest global engine platform that will be manufactured in Germany, China and Mexico and major new programmes with BMW for its innovative combi-sensor.
-In 2009, the Company won significant business with leading European truck manufacturers including MAN, with the design of a high temperature sensor to monitor the effectiveness of the cleaning process within the exhaust system. The technology ensures that all MAN trucks and buses are compliant with environmental legislation Euro 4 and Euro 5.
-The Sensors division was chosen by BMW during 2009 to supply a new range of speed sensors for a stop/start application. Using proprietary magnetic sensing technology, the Company developed an application which will be fitted onto all BMW four and six-cylinder engines, worldwide, starting in 2010.
-New climate control business has been won from North American OEMs. This will be manufactured in a newly established Chinese factory by mid 2007.
-The first volume Autopad application, due for launch in 2007, is for accelerator pedals for a major customer in the German automotive market.
Restructuring-In 2011, one of the division of the Company's subsidiary, International Resistive Corporation (IRC) Wire and Film Technologies (WAFT) has announced it will be closing the Boone, North Carolina, U.S. manufacturing plant in 2012. TT electronics IRC WAFT will be moving the majority of the Boone manufacturing operations to Mexicali, Mexico with most of the balance moving to IRC Advanced Film Division (AFD) in Corpus Christi, Texas, U.S.. The product lines will be moved over the course of the next 12 to 16 months. (From a press release on August 24, 2011)
-The closure of the AB Electronic facility in Romford (UK) is due to be completed by June 30, 2009.
-During 2008, seven production lines were transferred offshore with a further 13 lines moving to lower cost regions in the current year.
-Steps were taken in 2008 to reduce the Company's cost base in Germany including the use of short-time working.
Acquisition-In March 2005, the Company acquired Dage Limited ("DBS"), a Chinese electronic manufacturer that has an annual turnover of 19.3 million pounds and profit of 1.2 million pounds. The Company held the entire issued share capital of DBS for a cash consideration of 8.0 million pounds. DBS had manufacturing facilities in Aylesbury in the UK and in Suzhou, China. The acquisition of DBS allows the Company to expand its existing electronic manufacturing services business and provide it with the facilities in China to meet the requirements of its major OEM customers, particularly within the automotive industry.
Joint venture-In December 2006, the Company signed an agreement to form a joint venture with an established supplier to the automotive industry in India. The Company will own 51% of the joint venture which will manufacture and sell the group's sensors and systems to the Indian automotive and industrial markets. TT electronics' partner in the joint venture is Padmini VHA Mechatronics Pvt. Ltd. Padomini supplies a range of electromechanical and electronic products to the domestic Indian automotive market to customers including General Motors, Hyundai, Mahindra & Mahindra, Maruti and Tata.
R&D Activities-In October, 2010, the Company's Components Division has secured a contract to develop custom micro inverter/power electronic modules for the hybrid and electric vehicle (HEV) market. The contract with UK based Protean Electric will see TT electronics AB Mikroelektronik design and manufacture these complex modules at its advanced factory in Salzburg, Austria.(From a press release on October 5, 2010)
-The Company has developed combined temperature and pressure sensors. This sensor controls the temperature and flow of diesel fuel to the engine. Volume production commenced in 2006 for a Germany automotive manufacturer. Under development for the German automotive industry is a new range of solid state lighting modules for the control of vehicle daylight running lamps and direction indicator units. Production is planned to start during 2008.
-The Hall effect non-contacting sensors are more suitable for measuring speed such as engine crankshaft or road wheel rotation speeds. These are progressing well. eg. Hall effect torque and digital angular position sensor used in steering technology. This has been developed alongside its Autopad system.
-During 2007 the group purchased the patents to expand the use of Autopad for fuel level sensing and Digital Angular Position Sensing for steering applications.
-During 2006, the development of Autopad sensor product range has continued and the Company has won new business. These sensors will be used in angle measurement applications.
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Investment Outside UK<Romania>
-The Company is opening a new lower cost facility in Romania and manufacturing is expected to start in the second quarter of 2012.
-In 2011, the Company is doubling the size of its facility in Mexicali to accommodate production lines that are being relocated due to the closure of its facility in Boone, North Carolina. The full year benefit of this project will be realised from 2013 and is on target to be in the region of 2.5 million pounds per year.