TI Fluid Systems revenue falls in third quarter

(Sharecast News) - TI Fluid Systems reported a 2.9% decline in revenue at constant currency for the first nine months of the year on Tuesday, citing reduced market volumes and economic headwinds in the third quarter, which alone saw a revenue drop of 5.9%. The FTSE 250 company said its regional performance was mixed, with Europe, Middle East and Africa (EMEA) revenue up 5.4%, while Asia-Pacific and the Americas saw declines of 9% and 7.3% at constant currency, respectively.

Despite the challenges, TI's total bookings were ahead 9% at €1.8bn, bolstered by its propulsion-agnostic product portfolio, including its SPT 2.0 PHEV tank gaining traction with Chinese original equipment manufacturers (OEMs).

To counteract the challenging market environment, TI said it had intensified its operational efficiency measures, implementing additional short-term actions in the third quarter.

The company also completed a €40m share buyback, reducing its issued share capital by about 4.6%.

Looking ahead, TI Fluid Systems said it expected a low-to-mid single-digit decline in full-year 2024 revenue at constant currency compared to 2023, though it aimed to mitigate the impact through continued efficiency measures.

Adjusted free cash flow conversion was forecast at around 30% of adjusted EBITDA, slightly constrained by variability in customer production schedules.

Despite market volatility, TI said it remained focused on optimising operations and supporting long-term resilience.

"We have delivered a resilient performance in the first nine months of the year in an increasingly challenging and uncertain global automotive market," said chief executive officer and president Hans Dieltjens.

"Given this backdrop, we have intensified our self-help activities, with operational efficiency, productivity and further fixed cost reduction measures.

"Our bookings are on track and above 2023 despite delays to tenders as customers revise their plans, especially in relation to electrification."

Dieltjens said the company's resilience was underpinned by its propulsion agnostic portfolio, a diversified customer base and regional footprint, market-leading positions and a dedicated team.

"I would like to thank everyone at TI Fluid Systems for their continued hard work and commitment as we continue to execute our Taking-the-Turn strategy for long-term, profitable growth."

At 0918 GMT, shares in TI Fluid Systems were up 1.8% at 169.4p.

Reporting by Josh White for Sharecast.com.