TIDMTIFS
RNS Number : 3589M
TI Fluid Systems PLC
11 May 2020
11 May 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EC
NO. 596/2014)
TI Fluid Systems plc
Q1 2020 Trading Update and Final Dividend for 2019
TI Fluid Systems plc, a leading global manufacturer of highly
engineered automotive fluid storage, carrying and delivery systems
for light vehicles, issues this trading update for the three months
ended 31 March 2020.
Group Results
The Group achieved revenue of EUR717.3 million in the first
quarter, despite a significantly lowered global light vehicle
production environment due to the impact of the COVID-19 pandemic.
The unprecedented suspension of economic activity resulted in a
global light vehicle production volume decline of 23.0% versus Q1
2019. On a constant currency basis, Group revenue decreased by
16.0% year over year, representing a 7.0% outperformance of global
light vehicle production volume.
EURm 3 months 3 months % Change % Change
ended ended at constant
March March currency
2019 2020
Group Revenue 849.8 717.3 -15.6% -16.0%
--------- --------- --------- -------------
By Region
--------- --------- --------- -------------
Europe and Africa 354.2 303.3 -14.3% -14.3%
--------- --------- --------- -------------
Asia Pacific 242.4 181.5 -25.1% -24.9%
--------- --------- --------- -------------
North America 237.0 219.4 -7.4% -10.2%
--------- --------- --------- -------------
Latin America 16.2 13.1 -19.6% -7.0%
--------- --------- --------- -------------
By Segment
--------- --------- --------- -------------
Fluid Carrying Systems ("FCS") 478.6 396.8 -17.1% -17.4%
--------- --------- --------- -------------
Fuel Tank and Delivery Systems
("FTDS") 371.2 320.5 -13.7% -14.1%
--------- --------- --------- -------------
Source : IHS Markit, April 2020 v2 and Company estimates
Revenue by Region
Europe and Africa was impacted by customer shutdowns due to the
COVID-19 situation towards the end of the quarter and, as a result,
revenue decreased 14.3% at constant currency but still outperformed
light vehicle production volume in that region by 4.9% mainly
attributable to a resilient performance in FTDS in spite of the
slowing activity and new programme launches in FCS.
Asia Pacific revenue was impacted by the earlier COVID-19
shutdown from the end of January and decreased by 24.9% at constant
currency but, again, outperformed light vehicle production volume
in that region by 5.2% with both segments of the businesses
managing to stay ahead of the market declines due to the ramp up
impacts of new business awards.
North America felt less of the COVID-19 impact in the quarter
although revenue decreased by 10.2% at constant currency or 0.1%
higher than light vehicle production volume in that region. Both
segments of the business moved broadly in line with the regional
volumes.
Revenue by Segment
FCS revenue decreased by 17.4% at constant currency and was
heavily impacted by the COVID-19 factory closures in Asia Pacific
and Europe.
FTDS revenue decreased by 14.1% at constant currency with lower
exposure to the Asia Pacific market being offset by higher market
exposure in Europe.
Covid-19 Response
In light of the COVID-19 pandemic, the Group has taken a number
of steps to protect and prioritise the safety of our employees,
their families and our communities, including compliance with
relevant government directives. This response consists of a global
travel ban and the transition to a remote work environment for all
applicable staff employees as well as the implementation of
enhanced workplace and manufacturing measures such as social
distancing, improved hygiene procedures and modified shift
patterns. We have temporarily closed certain facilities to all but
essential personnel in order to maintain safety and a sustainable
business environment.
In addition, to provide humanitarian support to front line
health workers, the Group has collaborated with Ford Motor Co. and
3M to prototype, develop and produce within just two weeks air flex
tube assemblies for powered air-purifying respiratory systems
(PAPR). Thanks to the incredible dedication and resilience of our
employees and design teams, the Group was able to rapidly leverage
its design and manufacturing capabilities to mass produce quick
connectors and a new 'one size fits all' air flex tube solution for
the PAPR system to meet the demand of much needed protection for
health care workers. See our website (tifluidsystems.com) for more
details on this project.
Outlook
Given the unprecedented uncertainty of the impact and duration
of the COVID-19 pandemic the Company is withdrawing the 2020
outlook it provided in its full year 2019 results announcement on
17 March 2020.
Source : IHS Markit, April 2020 v2 and Company estimates
While we are not able to provide 2020 outlook, the Group has
taken, and will continue to take, actions to significantly reduce
operating costs and conserve cash. This comprehensive global
initiative is focused across all manufacturing locations and
functional areas and includes a hiring freeze, postponement of
salary increases, salary reductions, and utilization of worker
furlough programs. Our Board and senior management have agreed to a
temporary 10% reduction in their fees or base salary, and most
other salaried employees have agreed to a similar 5% reduction,
which will be reinstated for all when conditions are deemed
appropriate. In addition, the Group continues to monitor its
capital allocation and working capital in relation to related
customer and regional volume recoveries.
The Group ended 2019 in a strong liquidity and financial
position. In response to the significant economic impact of the
COVID-19 pandemic and to ensure sufficient cash availability in the
event of a prolonged reduction in global light vehicle production,
we took the precautionary decision at the end of March to draw
EUR146 million of our approximate EUR192 million revolving credit
facilities. Including this cash, our liquidity position was
approximately EUR600 million at 31 March 2020.
Dividend
The Board is confident that the Group will continue to
effectively manage the impact of the COVID-19 pandemic and, after c
arefully considering the Group's Q1 performance and overall
liquidity and financial position , supports payment of the 2019
final dividend as previously announced.
The 2019 final dividend amount of 5.94 euro cents was converted
from Euro to Sterling using the London closing spot rate on 24
April 2020. Accordingly, subject to shareholder approval at the
upcoming AGM on 14 May 2020, the Sterling dividend payable in cash
on 29 May 2020 to holders of ordinary shares of the Company on the
register on the record date of 24 April 2020 will be 5. 20 pence
per ordinary share .
Given the Group's strong customer relationships and efficient
global footprint, we believe the Group is well positioned to
recover as and when vehicle production volumes begin to increase.
The Group's highly experienced management team will continue to
focus on cash, fixed costs and operational flexibility in order to
manage through the current uncertain production volume
environment.
More information on the progress of the business will be
included in the half year results announcement, which we are
planning to release in August.
Trading update call
TI Fluid Systems plc is holding a call for analysts and
investors at 09:00am UK time today.
Conference Call Dial-In Details:
UK: +44 (0)330 336 9105
Conference Code: 4577447
The audio recording will be available on www.tifluidsystems.com
later today.
Enquiries
TI Fluid Systems plc
David J Royce
Investor Relations
Tel: +1 248 376 8624
FTI Consulting
Richard Mountain
Nick Hasell
Tel: +44 (0) 20 3727 1340
Cautionary Statement
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
business of the Group. 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 Group cannot be relied on as a guide to
future performance. Nothing in this announcement should be
construed as a profit forecast.
References in this announcement to the "Company" are to TI Fluid
Systems plc and references to the "Group" are to the Company and
its subsidiary undertakings.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCAPMATMTTMBPM
(END) Dow Jones Newswires
May 11, 2020 02:00 ET (06:00 GMT)
Ti Fluid Systems (LSE:TIFS)
Historical Stock Chart
From Sep 2024 to Oct 2024
Ti Fluid Systems (LSE:TIFS)
Historical Stock Chart
From Oct 2023 to Oct 2024