TI Fluid Systems reports earnings drop amidst 'challenging' global automotive market

Fluid storage systems manufacturer TI Fluid Systems saw underlying earnings fall in the first half of its trading year as revenues slipped amidst a "challenging" global automotive market.

Underlying EBITDA slipped 4.1% in the six months ended 30 June to €245.9m, driven by a 3.3% decline in revenues to €1.70bn.

Overall profits dropped 21.4% to €59.9m, while earnings per share contracted 17.9% to 12.4 euro cents.

TI Fluid said it had successfully executed its organic growth strategy in the fluid systems automotive market during the period, investing in a new thermal products facility in Morocco to primarily supply electric vehicles and scoring its first new business win with a Japanese customer.

The FTSE 250-listed firm maintained its interim dividend of 3.02 euro cents per share, which it said could represent a full-year pay-out in excess of its 30% of adjusted net income dividend policy.

Looking forward, TI expects revenues to outperform global light vehicle production volume levels, excluding the impact of currency movements, although it noted that its revenue outperformance would be lower than the prior year.

Chief executive William L Kozyra said: "The group continued to outperform global light vehicle production, however, the global automotive market remains challenging.

"We are confident in our strategy, business model, operating flexibility and strength in our ability to generate strong free cash flow in 2019."

As of 0940 BST, TI Fluid shares had sunk 9.04% to 179p.