Released: 2 May
2024
TI Fluid
Systems plc
Q1 2024
Trading Update
Good
start to 2024, confidence in full year outlook
TI Fluid Systems plc (TIFS), a
global industry leader in highly engineered automotive fluid
storage, carrying and delivery systems and thermal management
products and systems, issues a trading update for the first quarter
ended 31 March 2024.
Highlights for Q1 2024
·
Revenue declined slightly,
in-line with expectations, down 0.4% at constant currency and ahead
of the market
· Total bookings
at a strong level of €685 million, up 6% compared
to Q1 2023, benefiting from our propulsion agnostic product
portfolio
· Operational
efficiency and productivity measures
on track
·
Confidence in full year outlook for flat to low single-digit constant currency revenue growth,
Adjusted EBIT margin expansion to above 7.4% and Adjusted Free Cash
Flow conversion of c.30% of Adjusted EBITDA
Revenue € million
|
3 months
ended
March
24
|
3 months
ended
March
23
|
%
Change
|
% Change
at
constant
currency
|
|
|
|
|
|
EMEA
|
364.0
|
349.4
|
+4.2%
|
+4.3%
|
Asia Pacific
|
236.7
|
265.3
|
-10.8%
|
-5.3%
|
Americas
|
246.3
|
255.1
|
-3.4%
|
-2.0%
|
Group
|
847.0
|
869.8
|
-2.6%
|
-0.4%
|
Comment from Hans Dieltjens, CEO and
President
"We have had a good start to 2024 reflecting our strong market
position and agility as we capitalise on the strengths of our
conventional portfolio and the opportunities of electrification.
While there were fewer EV opportunities in the period, our total
bookings in Q1 have increased, demonstrating the benefits and
resilience of our agnostic portfolio. Our strong focus on
productivity is delivering the expected benefits to our bottom
line. While it is early in the year, our first quarter performance
underpins our confidence that we are on track to achieve our 2024
outlook. We remain focused on executing our Taking-the-Turn
strategy and delivering on our mid-term targets."
Revenue performance
Group revenue for the three months
ended 31 March 2024 was €847.0 million, down 0.4% at constant
currency and ahead of a 0.8% decline in global light vehicle
production. Reported revenue was 2.6% lower year-on-year, with a
foreign exchange headwind from the stronger Euro against most key
currencies.
Revenue for the EMEA region
increased 4.3% at constant currency, including a circa 200 basis
points contribution from the Cascade Engineering Europe
acquisition. Light vehicle production volumes in the region
declined by 1.5%. This reflects strong growth in fuel tanks
and delivery systems, including on plug-in hybrid platforms,
partially offset by lower volumes for thermal products for
EVs.
Asia Pacific revenue reduced by 5.3%
at constant currency compared to a light vehicle production decline
of 1.0%. Lower revenue in China was partially offset by strength in
Japan and India. As expected, our lower share with local OEMs in
China has continued to drive mix effects in the early part of 2024.
Revenues are ramping up on our 2023 launches and we have launched
approximately 20 further programmes in Q1 which will improve our
position with local OEMs.
Revenue in the Americas was 2.0%
lower at constant currency. As expected, the exit of a less
profitable product line has resulted in a revenue headwind of over
500 basis points. Excluding this, the region grew well, driven by
fuel tanks on plug-in hybrid and ICE platforms as well as brake
& fuel lines in a flat market.
Regional structure and historical
financial information
Following the move to a regional
structure from 1 January 2024, TIFS has today published historical
pro forma financial information. The Group's new reporting
structure comprises three regions, ensuring alignment with
customers and enhancing regional leaders' agility to respond to
changes in their markets, particularly the transition to
electrification.
The unaudited pro forma financial
information is presented for 2022 and 2023 together with H1 2023
and is available at the following LINK
Confidence in full year
outlook
For 2024, our planning assumptions
for a modest year-on-year industry volume decline are unchanged. We
expect flat to low-single digit constant currency revenue growth, a
further increase in Adjusted EBIT margin to above 7.4% driven by
productivity and efficiency initiatives, and strong Adjusted Free
Cash Flow conversion of approximately 30% of Adjusted
EBITDA.
Trading update call
TI Fluid Systems plc is holding a
call for analysts and investors at 11:00 am UK time
today.
Conference Call Dial-In
Details:
United Kingdom
(Local)
020 3936 2999
United Kingdom (Toll Free)
0800 358 1035
United States
(Local)
1 646 787 9445
All other locations
Global Dial-In Numbers
Access code:
839840
You can pre-register to receive a
unique PIN to dial directly into the call
using this link
An audio recording will be available
on our website www.tifluidsystems.com in due
course.
Enquiries
TI Fluid Systems plc
Kellie McAvoy
Investor Relations
Tel: +44 7354 846374
Headland Consultancy
Matthew Denham / Chloe
Francklin
Tel: +44 (0)20 3805 4822
Cautionary Statement
This announcement contains certain
forward-looking statements with respect to the financial condition,
results of operations and business of TI Fluid Systems plc (the
"Company"). The words "believe", "expect", "anticipate", "intend",
"estimate", "forecast", "project", "will", "may", "should" and
similar expressions identify forward-looking statements. Others can
be identified from the context in which they are made. By their
nature, forward-looking statements involve risks and uncertainties,
and such forward-looking statements are made only as of the date of
this announcement. Accordingly, no assurance can be given that the
forward-looking statements will prove to be accurate, and you are
cautioned not to place undue reliance on forward-looking statements
due to the inherent uncertainty therein. Past performance of the
Company cannot be relied on as a guide to future performance.
Nothing in this announcement should be construed as a profit
forecast.