TI Fluid Systems' revenues slip as North American operations falter

British manufacturer TI Fluid Systems saw group revenues fall back in the first quarter of its trading year, mainly due to the underperformance of its North American operations.

TI Fluid turned in group revenues of €849.8m in the first quarter, despite a soft light vehicle production environment, which declined 6.7%.

On a constant currency basis, revenues decreased 4.8% year-on-year and by 2.2% on an as reported basis.

In Europe and Africa, sales slipped 2.1% at constant currency and, in its Asia Pacific unit, revenues decreased slightly, by 1.9% at constant currency.

Most importantly, in North America, revenues decreased by 11.6% at constant currency or 9.1% below light vehicle production volume in that region, primarily due to lower launch activity.

Despite the revenue decline, the FTSE 250 resident kept its 2019 outlook unchanged.

Analysts at Peel Hunt praised TI fluid for its continued outperformance, saying the group had produced a "solid first performance" against a tough market backdrop.

Peel Hunt also reiterated its 'buy' rating and 380p target price for TI Fluid.

As of 1000 BST, TI Fluid shares dipped 1.52% to 195p.