11th May 2020 09:55
(Alliance News) - TI Fluid Systems PLC on Monday reported a fall in revenue for its first quarter as it confirmed the payment of its 2019 final dividend.
TI Fluid's products store and move fluids such as fuel and brake fluid around automobiles.
For the three-months to the end of March, the company recorded revenue of EUR717.3 million, down 16% from EUR849.8 million a year before.
The decline was attributed to the suspension of activity caused by the Covid-19 outbreak.
By region, Europe and Africa saw revenue fall by 14% to EUR303.3 million on a constant currency basis, with Asia Pacific recording a 25% decline to EUR181.5 million. Revenue for North America was down 10% to EUR219.4 million, while Latin America suffered a decline of 7.0% to EUR13.1 million.
By segment, Fluid Carrying Systems revenue was down 17% to EUR396.8 million, while revenue for Fuel Tank & Delivery Systems was down by 14% to EUR320.5 million.
TI Fluid Systems announced measures to reduce costs and conserve cash, such as temporarily slashing salaries by between 5% to 10% and furloughing staff. However, it said it still will pay its 2019 final dividend of 5.94 euro cents.
"The board is confident that the group will continue to effectively manage the impact of the Covid-19 pandemic and, after carefully considering the group's Q1 performance and overall liquidity and financial position, supports payment of the 2019 final dividend," the Oxford-based company said.
Following a drawdown of EUR146 million from its EUR192 million in revolving credit facilities, as at the end of March, TI Fluid had available liquidity of around EUR600 million.
The stock was trading 0.8% higher at 172.00 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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