TI Fluid Systems saw its profits decline by nearly a quarter despite higher sales on the back of cost inflation.
“The Russian invasion of Ukraine and the lingering effects of the COVID-19 pandemic resulted in production volatility, supply chain disruptions, labour shortages, and manufacturing instabilities,” management explained in a statement.
For the year ending on 31 December, adjusted revenues jumped by 10.5% or 5.2% at constant currencies to reach approximately €3.27bn.
Adjusted net income meanwhile was down by 25.4% to €43.5m.
In statutory terms on the other hand, TI Fluid incurred a loss of €279m due to €297.3m in charges, mostly to the company’s goodwill, as a result of lower medium-term Global Light Vehicle Production growth, cost pressures, and higher discount rates, all of which reduced the present value of future cash flows.
Adjusted free cash flow fell from €117.3m to €78.4m.
Looking ahead, said it was confident in its ability to return to its historic margin levels over the medium-term.
As for 2023, management said that it would prioritise increasing prices and customer recoveries in order to offset cost inflation, rationalising costs and completion of new launches.
The company proposed a final dividend of €1.54 per share, which lowered its full-year payout from €3.39 per share in 2021 to €2.54.
As of 1130 GMT, shares of TI Fluid were retreating by 1.34% to 103.20p.
