Tornos Q1 order intake up 80%, but parts shortages loom

Order intake totalled almost £55 million, with business activity said to be "particularly dynamic in the Swiss watchmaking industry, the medical segment and the automotive subcontracting sector in southern Europe". And while all geographical regions contributed to the healthy growth in new orders, Tornos reports its traditionally strong markets of Switzerland and southern Europe surpassed expectations "considerably". On first quarter sales, these were considerably lower, due to the time lag between orders received and their delivery, combined with a January weakened by the year-end holidays. That said, gross quarterly sales were up 126.9% to £41 million. On the back of the good first-quarter order intake, Tornos' sales will rise in the second quarter of 2011. And provided that the economic environment remains stable throughout the year and there are no significant changes in exchange rates, the company says it anticipates gross sales in the order of £175 to £210 million. However, a challenge will be to obtain parts and subassembly deliveries from its suppliers within the agreed deadlines, the report concludes.