TI Fluid Systems PLC Q1 2022 Trading Update (6798L)
May 17 2022 - 2:00AM
UK Regulatory
TIDMTIFS
RNS Number : 6798L
TI Fluid Systems PLC
17 May 2022
Released: 17 May 2022
TI Fluid Systems plc
Q1 2022 Trading Update
TI Fluid Systems plc, a leading global manufacturer of highly
engineered automotive fluid storage, carrying, delivery and thermal
management systems for light vehicles issues a trading update for
the three months ended 31 March 2022.
Group Results
Group revenue for Q1 was EUR755.0 million, a decrease of 4.1%
versus Q1 2021. Global light vehicle production (GLVP) volumes
decreased 4.5%, reflecting the continued disruptions to the supply
chain, further exacerbated by the Ukraine conflict and Covid-19
related shutdowns in China.
At actual rates, revenue outperformed GLVP by 40 basis points
(bps). On a constant currency basis, revenue declined 7.7% year
over year and underperformed GLVP by 320 bps.
3 months 3 months % Change % Change
ended ended (Actual (Constant Global
EURm Mar 22 Mar 21 currency) Currency) LVP volumes
---------------------------------
Group Revenue 755.0 787.0 -4.1% -7.7% -4.5%
--------- --------- ----------- ----------- -------------
By Region
--------- --------- ----------- ----------- -------------
Europe and Africa 289.9 320.3 -9.5% -9.4% -15.0%
--------- --------- ----------- ----------- -------------
Asia Pacific 257.8 263.6 -2.2% -7.7% 0.2%
--------- --------- ----------- ----------- -------------
North America 196.9 190.2 3.5% -3.6% -1.8%
--------- --------- ----------- ----------- -------------
Latin America 10.4 12.9 -19.3% -26.4% -12.7%
--------- --------- ----------- ----------- -------------
By Segment
--------- --------- ----------- ----------- -------------
Fluid Carrying Systems ("FCS") 427.9 418.8 2.2% -1.9% -4.5%
--------- --------- ----------- ----------- -------------
Fuel Tank and Delivery Systems
("FTDS") 327.1 368.2 -11.2% -14.3% -4.5%
--------- --------- ----------- ----------- -------------
Notes : All production volume outperformance metrics herein are
based on IHS Markit, April 2022, and Company estimates. All revenue
and outperformance at constant currency basis
Revenue by Segment
Supported by strong execution on the Company's electrification
strategy, the FCS division outperformed GLVP by 260 bps primarily
due to the new content thermal revenue.
The FTDS division underperformed GLVP by 980 bps, largely
impacted by the Covid-19 related customer shutdowns in China
(Tianjin) and the anticipated lower year-over-year launch activity
in the quarter.
Revenue by Region
In Europe and Africa, revenue decreased 9.4% year over year and
outperformed GLVP in that region by 560 bps, benefiting from new
thermal HEV and BEV programs. This represented a strong performance
in the region given customer scheduling volatilities resulting from
the Ukraine conflict.
Asia Pacific revenue decreased 7.7% year over year,
underperforming GLVP in that region by 790 bps, reflecting various
disruptions to the supply chain in the region, Covid-19 related
customer shutdowns in China and unfavourable mix.
In North America revenue decreased 3.6% year over year and
underperformed GLVP in that region by 180 bps, mainly due to the
anticipated lower launch activity than prior year.
Electrification
The Group continues to show good progress in the execution of
its electrification strategy and recorded new BEV business bookings
with lifetime revenue of EUR427 million in Q1.
Outlook
We continue to see uncertainty and volatility in the markets due
to continued microchip shortages, the ongoing conflict in Ukraine
and Covid-19 related customer shutdowns in China.
We are making progress with cost recovery from our customers.
However, we expect our H1 2022 margins to be modestly lower than H2
2021 due to disruptions in production, ongoing inflationary
pressures and time lag on recoveries.
Taking the year as a whole, we anticipate annual GLVP volumes to
be below 2021 levels. Provided that commodity prices stabilise and
GLVP volumes and inflationary pressures do not deteriorate
significantly further, consistent with our previous full year
outlook guidance, we would expect to achieve revenue outperformance
and historical cash flow conversion with full year margins slightly
below 2021 levels, thanks to sequential margin expansion in H2 2022
as customer pricing recoveries are realised.
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)330 165 4012
Conference Code: 5754956
The audio recording will be available on www.tifluidsystems.com
later today.
Enquiries
TI Fluid Systems plc
Pilar Riesco
Investor Relations
Tel: +34 607 577 830
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 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.
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