Manufacturer TT Electronics warns over profit hit from US tariffs

TT Electronics has warned that US tariffs will knock its profits and risks impacting its ability to keep operating, as its announced the sudden departure of its boss.

The Woking-based manufacturer of electronics said the import taxes and retaliatory measures had led to an “uncertain and volatile” backdrop.

The company, which has factories in the UK, North America and Asia, reported a statutory pre-tax loss of £33.4 million for 2024.

It has previously warned of difficulty in its US branch, with slumping demand for the components it produces and ongoing production issues at its factories.

This led to it booking a £52.2 million write-down due to the challenges.

It also revealed it shed 500 staff over the first half of the year in North America which it expects to result in £12 million of yearly cost savings.

The US woes offset strong performances for the business in Europe and Asia, with the firm generating £521.1 million in revenues for the year.

TT Electronics engineers and manufactures products to support sectors from healthcare to aerospace, and has counted customers including BAE Systems and Thales.

However, the company warned the recent US global tariffs, leading to retaliatory charges from some countries including China, had led to an “uncertain and volatile macroeconomic backdrop which could have an impact beyond that assumed in the severe downside case”.

That means conditions could worsen beyond its worst-case scenario, particularly if US customers cut back on orders, which could impact its ability to keep operating and being profitable in the year ahead.

It also now expects to report an adjusted operating profit of between £32 million and £40 million for the year ahead. This is down from the £40 million to £46 million it previously forecast.

It comes as US President Donald Trump said he was introducing a 90-day pause on tariffs for most nations, excluding China, on Wednesday.

Mr Trump’s tariffs include a 25% charge on cars and others on steel and aluminium imports.

Meanwhile, TT Electronics announced its chief executive Peter France was stepping down “with immediate effect”.

He has been replaced by finance chief Eric Lakin on an interim basis while the firm said it will be “assessing all options” for its struggling components division.