18th Jan 2023 11:12
(Alliance News) - TI Fluid Systems PLC on Wednesday said it was well positioned to deliver on its long-term objectives, as it anticipates revenue for last year ahead of 2021.
TI Fluid Systems is an Oxfordshire, England-based global manufacturer of automotive fluid storage, carrying, delivery, and thermal management systems for light vehicles.
For the year ended December 31, 2022, the company expects revenue at around EUR3.26 billion, representing growth of 10% compared to 2021.
This is despite an unexpected negative sales impact in China during the final quarter, driven by changes to the government's Covid-19 policy, which caused unexpected production shutdowns.
However, TI Fluid Systems made good progress on battery electric vehicle awards during the final quarter, with a further EUR400 million lifetime revenue booked. This brought the total to EUR1.3 billion for the full year.
Annual bookings for hybrid electric vehicles were similarly EUR1.3 billion, with EUR300 million in the fourth quarter.
The company expects annual adjusted earnings for 2022 before interest and tax of around EUR180 million. Adjusted free cash flow for the same year is expected to be approximately EUR80 million.
Looking ahead, TI Fluid said it would review the carrying value of certain fixed and intangible assets at the year end, which is likely to give rise to a material non-cash impairment charge.
Company shares fell as a result, down 13% to 117.40 pence each in London on Wednesday morning.
Yet while the company was mindful of short-term challenges ahead - particularly in China - it remained confident of delivering on long-term objectives.
Full results will be published on March 16.
By Holly Beveridge; Alliance News reporter
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