Manufacturer TI Fluid Systems said on Tuesday that group revenues had slipped in the three months ended 31 March as continued disruptions to its supply chain, the Ukraine conflict, and Covid-19 related shutdowns in China all weighed on trading.
TI Fluid Systems posted a 4.1% drop in group revenues to €755.0m, with European and African revenues slipping 9.5% to €289.9m and Latin American revenues tumbling 19.3% to €10.4m. In Asia Pacific and North America, revenues fell 2.2% and 3.5% to €263.6m and €190.2m, respectively.
The FTSE 250-listed firm stated that it continued to see “uncertainty and volatility” in markets due to continued microchip shortages, Russia’s invasion of Ukraine, and lockdowns in China and while TI highlighted that it was “making progress” with cost recovery from customers, it still expects interim margins to be “modestly lower” than in the tail end of 2021 due to disruptions in production, ongoing inflationary pressures and time lag on recoveries.
“Taking the year as a whole, we anticipate annual GLVP volumes to be below 2021 levels. Provided that commodity prices stabilise and GLVP volumes and inflationary pressures do not deteriorate significantly further, consistent with our previous full-year outlook guidance, we would expect to achieve revenue outperformance and historical cash flow conversion with full-year margins slightly below 2021 levels, thanks to sequential margin expansion in H2 2022 as customer pricing recoveries are realised,” said TI.
As of 0815 BST, TI shares were down 4.47% at 179.60p.
Reporting by Iain Gilbert at Sharecast.com
