Electrocomponents sales slump slows

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Symbol	Price	Change
ECM.L	197.30	-0.40
^FTMC	9,854.44	-10.85

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LONDON (ShareCast) - Electrical parts company Electrocomponents (LSE: ECM.L - news) saw profits slump 41% during the first half as the global recession caused a sharp drop in revenue, although the sales decline is slowing.

Headline profit before tax fell to £24.8m in the six months ended 30 September, down from £42.2m a year ago. Revenue was 15% lower at £447.2m, or down 8.4% on a reported basis.

But the impact on sales has eased across all regions. They fell 17% in the first quarter, by 13% over the next three months and by about 8% in October.

Sales fell 8% last month in both the UK and International businesses. Within International, Continental Europe saw revenue drop 8%, North America by 11% and Asia Pacific 4%.

"Although the macroeconomic outlook remains uncertain, the sales trend is encouraging, which gives us confidence in the out-turn for the full year," said the FTSE 250 (news) firm.

It has cut costs by about 10% and is on track to achieve reductions of £18m a year.

The interim dividend stays at 5p a share.