Volex PLC AGM Statement (0218M)
25 July 2017 - 8:14PM
UK Regulatory
TIDMVLX
RNS Number : 0218M
Volex PLC
25 July 2017
25 July 2017
Volex plc
AGM and Trading Update
Volex plc ("Volex"), one of the world's largest manufacturers of
premium power cord and harness assemblies, is today holding its
Annual General Meeting during which the Chairman will make the
following statement on trading for the three months ended June
2017:
"I am pleased to report that trading for the first quarter has
been in line with our expectations. Profitability has improved in
the first quarter of FY2018 versus the prior year, as we enjoyed
lower operating expenses as a result of actions taken to reduce
costs over the last year.
We have continued to add a number of new customers in North
America. The growth we are experiencing has presented some
operational challenges at our Mexico facility, as we invest in
additional staff and raw materials to satisfy our customers'
requirements. We expect to be able to address these challenges
during the second quarter.
As reported on 8 June we are seeking new end-markets to
diversify our Power Cord customer base at our Shenzhen facility and
I am pleased to confirm that we are now shipping products to a key
manufacturer of electric cars and look forward to supporting them
with the launch of a new model later this year.
We believe our cost reduction measures and ongoing operational
improvements should allow us to maintain gross profit margins at a
similar level in the year ahead despite commodity price increases.
At the time of writing this statement we note some adverse currency
movements affecting our labour costs as well as commodity price
inflation. Despite these risks, I am confident in Volex's ability
to continue to make revenue progress and deliver further value to
our shareholders.
Finally, I would like to thank our employees across the globe
for their dedication, commitment and hard work, as we improve our
competitiveness and profitability."
For further information please contact:
Volex plc
Nat Rothschild, Executive Chairman +65 6788 7833
Daren Morris, Group Chief Financial Officer +44 208 017 3232
Forward looking statements
Certain statements in this announcement are forward-looking
statements which are based on Volex's expectations, intentions and
projections regarding its future operating performance and
objectives, anticipated events or trends and other matters that are
not historical facts. Forward-looking statements are sometimes, but
not always, identified by their use of a date in the future or such
words as 'anticipates', 'aims', 'could', 'may', 'should',
'expects', 'believes', 'intends', 'plans', 'targets', 'goal' or
'estimates'. By their very nature forward-looking statements are
inherently unpredictable, speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. Factors that could cause or contribute to such
differences include, by way of example only and not limited to,
general economic conditions, currency fluctuations, competitive
factors, the loss of one of our major competitors, failure of one
or more major suppliers and changes in raw materials or labour
costs among other risks. Given these risks and uncertainties,
prospective investors are cautioned not to place undue reliance on
forward-looking statements. Forward-looking statements speak only
as of the date of such statements and, except as required by
applicable law, Volex undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMOKPDDKBKDNOB
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