TIDMTIFS
RNS Number : 1279F
TI Fluid Systems PLC
03 November 2022
Released: 3 November 2022
TI Fluid Systems plc
Q3 2022 Trading Update
Continuing strong EV bookings
Updated 2022 outlook in line with market consensus
TI Fluid Systems plc, a leading global manufacturer of highly
engineered automotive fluid storage, carrying, delivery and thermal
management systems for light vehicles issues a trading update for
the third quarter and nine months ended 30 September 2022.
Summary
The Group continues to make excellent progress on its organic
electrification growth strategy with EUR0.9 billion of lifetime
revenue for Battery Electric Vehicle ("BEV") awards year to date,
of which EUR300 million was booked in Q3 2022. Further success on
Hybrid Electric Vehicles ("HEV") delivered EUR 1.0 billion lifetime
revenue bookings year to date.
The Group's revenue for the nine months to September 2022 grew
by 10.4% at actual rates compared to a global light vehicle
production ("GLVP") growth(1) of 7.5%. At constant currency,
revenue grew 4.5% and underperformed GLVP growth by 300 basis
points ("bps"). Over the first three quarters, the Group
outperformed the growth in GLVP in every region except China, where
revenue growth was impacted by mix on BEV growth. Q3 2022 revenue
was EUR846.4 million, an increase of 28.8% at actual rates compared
to last year and to a market growth of 27.5%. At constant currency,
revenue increased 19.9% in Q3 2022 and underperformed GLVP growth
by 760 bps.
Significant cost recoveries have been agreed with customers,
similar to other suppliers in the industry. However, inflationary
cost increases are expected to remain, and the Group continues to
actively pursue ongoing cost recoveries and price adjustments.
[1] All production volume outperformance metrics herein are
based on S&P Global Mobility, October 2022, and Company
estimates
Q3 Trading Results
The Group had EUR300 million of lifetime revenue BEV bookings in
Q3 2022, bringing BEV bookings for the first nine months of 2022 to
EUR0.9 billion which evidences the progress being made by the Group
on securing future revenue growth as the industry continues the
transition to BEV platforms.
GLVP volumes in Q3 2022 continued their rebound and were 27.5%
higher than in Q3 2021, driven by the recovery from the severe
microchip shortages and supply chain disruptions experienced in Q3
2021, partially tempered by the ongoing impact of the
Ukraine/Russia conflict on European volumes during 2022.
Q3 2022 Group revenue was 28.8% higher year over year at
reported rates at EUR846.4 million, or 19.9% year over year at
constant currency which represented an underperformance of 760 bps
compared to the change in GLVP growth for the quarter.
Revenue continues to grow at a favourable pace despite being
constrained by the Group's lower participation on the mainly
domestic BEV platforms in the Chinese market where significant BEV
growth is being supported by local incentives.
By segment, on a constant currency basis, FCS Q3 year over year
revenue grew by 22.7%, outperforming the market in all regions
except Asia Pacific, while FTDS Q3 revenue grew by 16.2%.
By region, on a constant currency basis, Q3 2022 revenue was
higher by 17.9% in Europe and Africa, 22.1% in North America, and
20.2% in Asia Pacific.
Nine months ended 30 September 2022
The Group delivered revenue of EUR2,405.9 million in the nine
months ended 30 September 2022, a 10.4% increase from the same
period in 2021.
9 months 9 months
ended ended
% Change
at constant
EURm Sep 22 Sep 21 % Change currency
Group Revenue 2,405.9 2,179.6 10.4% 4.5%
By Segment
Fluid Carrying Systems ("FCS") 1,373.9 1,186.8 15.8% 8.9%
Fuel Tank and Delivery Systems
("FTDS") 1,032.0 992.8 3.9% (0.9)%
By Region
Europe and Africa 880.9 862.4 2.1% 1.9%
Asia Pacific 821.8 756.8 8.6% 1.7%
North America 665.2 525.1 26.7% 12.7%
Latin America 38.0 35.3 7.6% (4.7)%
Compared to the same period last year, the US Dollar appreciated
by 11.0% against the Euro, and the Chinese Renminbi by 9.3%. With
just under half of the Group's revenue denominated in these
currencies, these foreign exchange rate movements against the Euro
had a significant positive impact on the Group's revenue
performance. The foreign exchange movements accounted for just over
half of the year-on-year reported revenue increase. On a constant
currency basis, revenue increased by 4.5%.
Revenue by Segment
FCS revenue increased by 8.9% at constant currency and
outperformed the growth in GLVP by 140 bps. The segment's revenue
growth is primarily driven by execution of the EV strategy in
Europe and North America and related programme launches.
FTDS revenue declined slightly by 0.9% at constant currency,
mainly impacted by the increase of BEV particularly in China,
launch activities in 2021 not repeated in 2022 as well as the exit
of part of the business in Latin America.
Revenue by Region
In Europe and Africa, revenue increased by 1.9% year over year
at constant currency, compared to a 0.9% decline in light vehicle
production volume in that region, representing an outperformance of
280 bps, as the business continues to benefit from thermal HEV/BEV
business launches in both divisions. This benefit offset the
cessation of operations in Russia.
Asia Pacific revenue increased by 1.7% year over year at
constant currency impacted by the increase in domestic Chinese OEM
smaller BEV production where the Group has minimal content, and
impact of continued COVID related lockdowns in the region.
In North America revenue significantly increased by 12.7% year
over year at constant currency and outperformed light vehicle
production volume growth in that region by 210 bps, primarily due
to continued thermal launches and programme ramp ups.
Outlook
Based on our current view of Q4 2022, we expect to report full
year results in line with current consensus market expectations,
with full year revenue growth consistent with, or slightly below,
GLVP growth (on a constant currency basis), a full year adjusted
EBIT margin of approximately 6.0%, and historical levels of cash
flow conversion.
Trading update call
TI Fluid Systems plc is holding a call for analysts and
investors at 11:00 am UK time today.
Conference Call Dial-In Details:
United Kingdom 0800 640 6441
United Kingdom (Local) 0203 936 2999
United States 1 855 9796 654
United States (Local) 1 646 664 1960
All other locations +44 203 936 2999
Access code: 560951
You can pre-register for the call using the link below to
receive a unique PIN to dial directly into the call:
Pre-Event Registration
An audio recording will be available on
http://www.tifluidsystems.com later today.
Enquiries
TI Fluid Systems plc
Tim Furber
Investor Relations
Tel: +44 1865 871887
FTI Consulting
Richard Mountain / Nick Hasell
Tel: +44 20 3727 1340
Cautionary Statement
This announcement contains certain forward-looking statements
with respect to the financial condition, results of operations and
business of TI Fluid Systems plc (the "Company"). The words
"believe", "expect", "anticipate", "intend", "estimate",
"forecast", "project", "will", "may", "should" and similar
expressions identify forward-looking statements. Others can be
identified from the context in which they are made. By their
nature, forward-looking statements involve risks and uncertainties,
and such forward-looking statements are made only as of the date of
this announcement. Accordingly, no assurance can be given that the
forward-looking statements will prove to be accurate, and you are
cautioned not to place undue reliance on forward-looking statements
due to the inherent uncertainty therein. Past performance of the
Company cannot be relied on as a guide to future performance.
Nothing in this announcement should be construed as a profit
forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBKBBKOBDDBDK
(END) Dow Jones Newswires
November 03, 2022 03:00 ET (07:00 GMT)
Ti Fluid Systems (LSE:TIFS)
Historical Stock Chart
From Mar 2023 to Mar 2023
Ti Fluid Systems (LSE:TIFS)
Historical Stock Chart
From Mar 2022 to Mar 2023
