TI Fluid Systems cuts dividend by a quarter on swing to annual loss

(Alliance News) - TI Fluid Systems PLC on Thursday cut its dividend by 25%, as it fell into loss ...

Alliance News 16 March, 2023 | 10:39AM
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(Alliance News) - TI Fluid Systems PLC on Thursday cut its dividend by 25%, as it fell into loss in 2022 mostly due to a huge impairment charge.

TI Fluid Systems is an Oxfordshire-based maker of automotive fluid storage, carrying, delivery, and thermal management systems for light vehicles.

For 2022, revenue was EUR3.27 billion, up 11% from EUR2.96 billion in 2021. In Europe and Africa region, revenue rose to EUR1.21 billion, up 6.0% from EUR1.14 billion. It was up 5.3% to EUR1.11 billion from EUR1.06 billion in Asia Pacific and up 26% to EUR895.8 million from EUR713.6 million in North America.

However, TI Fluid Systems swung to a EUR275.7 million last year from a EUR54.1 million profit in 2021. This was primarily due to EUR317.4 million in exceptional charges, compared to just EUR11.8 million the year before. The company said the exceptional charge mostly was an impairment of goodwill due to a reduction in the current value of future cash flows.

Before the exceptional charges, pretax profit still was down 37% to EUR41.7 million from EUR65.9 million.

Adjusted earnings before interest and tax amounted to EUR180.0 million, down from EUR212.6 million in 2021. Adjusted Ebit margin was 5.5%, down from 7.2% in 2021.

Chief Executive Officer Hans Dieltjens said: "2022 was our centennial year during which continued to lay the foundations for securing the group's future with 37% of our booking awards on BEV vehicles, in addition to year-on-year revenue growth.

TI Fluid declared a final dividend of 1.54 euro cents for 2022, taking its total dividend to 2.54 euro cents, down 25% from 3.39 cents for 2021.

Looking ahead, TI Fluid said it expects adjusted Ebit margin to expand above 6% this year.

Shares were down 0.9% at 103.68 pence each on Thursday morning in London.

By Xindi Wei, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
TI Fluid Systems PLC 140.00 GBX 0.72 -

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