* Full-year headline pretax profit rises 7.4 pct
* Full-year revenue rises 2.1 pct
* Total international sales rise 3.8 pct
* Sales rise 2 pct in first seven weeks of financial year
* Shares fall as much as 6.2 pct
(Adds CEO and analyst quote, updates share movement, adds
By Noor Zainab Hussain
May 22 Electrocomponents Plc, a British
distributor of electronic products for engineers, reported 2
percent growth in sales for the first seven weeks of its
financial year, sending its shares down as much as 6.2 percent
in early trading.
Electrocomponents' shares were down 3.8 percent at 278.44
pence on the London Stock Exchange at 1158 GMT after hitting a
low of 271.
UBS analysts cut their price target on the stock to 315
pence from 320, mainly due to higher costs related to the
company's marketing and organisational efforts to win market
share from smaller competitors around the world.
However, Electrocomponents said sales trends so far in May
have improved compared to April.
"What comes into play in the next year is (foreign exchange
rates)" Peel Hunt analyst Henry Carver told Reuters. "There is
now a fairly chunky headwind, costs are going up, which is going
to impact the profit margin," he said.
However, Chief Financial Officer Simon Boddie told Reuters
that the strong pound would have a small impact on profit for
the year ending March 2015.
Electrocomponents gets about 70 percent of group revenue
from outside the UK.
The company said on Thursday its full-year headline pretax
profit rose 7.4 percent to 101.1 million pounds ($170.6 million)
in the year ended March 31, helped mainly by demand in Europe
and North America.
Revenue rose 2.1 percent to 1.27 billion pounds.
Electrocomponents - which distributes 500,000 products,
sourced from over 2,500 suppliers - said underlying sales in the
UK declined 1.8 percent.
" ... We have been surprised that it has not done a bit
better in the UK, hence we have changed some of the management
there", Chief Executive Ian Mason told Reuters.
The management changes were implemented in the second half
of last year, the company said.
Electrocomponents, which says it typically supplies
electronics design engineers, machine and panel builders and
maintenance engineers, said underlying international sales rose
3.8 percent to 898.8 million pounds.
Underlying sales include the impact of foreign exchange
rates and the number of trading days.
Electrocomponents, whose brands include RS Components and
Allied Electronics, said underlying sales in continental Europe
increased 4.1 percent in the year, while North American sales
rose 4.2 percent. Sales in the Asia Pacific region rose 2.1
($1 = 0.5925 British Pounds)
(Reporting by Noor Zainab Hussain in Bangalore; Editing by
Gopakumar Warrier and Ted Kerr)