TI Fluid Systems shares down despite revenue rise at "favourable pace"

(Alliance News) - TI Fluid Systems PLC on Thursday said it expects to meet annual guidance ...

Alliance News 3 November, 2022 | 11:45AM
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(Alliance News) - TI Fluid Systems PLC on Thursday said it expects to meet annual guidance despite expectations that inflationary cost increases will continue as revenue continues to rise.

Shares were down 6.9% at 123.70 pence each on Thursday morning in London.

The FTSE 250 company, which makes products including brake fluids and fuel tanks for cars and trucks, said revenue continues to grow at a "favourable pace" despite being constrained by the group's "lower participation on the mainly domestic [Battery Electric Vehicle] platforms in the Chinese market where significant BEV growth is being supported by local incentives".

Further, "inflationary cost increases are expected to remain, and the group continues to actively pursue ongoing cost recoveries and price adjustments," TI Fluid Systems said.

For the nine months that ended on September 30, group revenue amounted to EUR2.41 billion, up 10% from EUR2.18 billion a year ago.

In particular, Fluid Carrying Systems revenue increased by 16% to EUR1.37 billion from EUR1.19 billion, and North America region generated the most revenue of EUR665.2 million compared to other regions. This is up 27% from EUR525.1 million a year ago.

In the third quarter of 2022, revenue amounted to EUR846.4 million, up 29% year-on-year.

Looking ahead, TI Fluid expects to report full-year results in line with current consensus market expectations, with full-year revenue growth consistent with or slightly below global light vehicle production growth.

The company also expects an annual adjusted margin of around 6.0%.

In August, TI Fluid said revenue in the six months that ended on June 30 rose by 2.4% to EUR1.56 billion from EUR1.52 billion a year earlier. Revenue was down 2.4% at constant currency rates, however.

Pretax profit fell 56% to EUR19.8 million from EUR44.5 million, as distribution costs rose by 16% to EUR53.3 million from EUR46.1 million a year earlier.

By Xindi Wei; xindiwei@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
TI Fluid Systems PLC 139.00 GBX -1.42 -

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