4th Nov 2021 10:52
(Alliance News) - TI Fluid Systems PLC on Thursday said revenue fell in the third quarter as component shortages crimped vehicle production globally.
The FTSE 250 company, which makes products including brake fluids and fuel tanks for cares and trucks, said global light vehicle production volumes dropped 20% in the third quarter of 2021.
TI Fluid's revenue declined 14% year-on-year during the period as a result.
"Additional to the production volume impact of the shortages and disruptions, customer releases (call offs) have been highly volatile with significant changes late in the order cycle which the group is managing together with its customer base," TI Fluid noted.
The company said its electrification strategy shielded it from further revenue hurt in the third quarter.
For the nine months, however, revenue was 12% higher annually at EUR2.18 billion from EUR1.95 billion.
Looking ahead, TI cautioned: "The group's performance in Q3 2021 reflected lower global light production volumes combined with a high volatility of customer releases. It is expected that these challenges will continue through year end and into 2022 with global light vehicle production volumes now forecasted to return to pre-Covid levels in 2023."
Shares in the company were 1.6% lower at 265.11 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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