TI Fluid Systems sees revenues, profits slow

TI Fluid Systems saw revenues and profits slip last year, as it warned of uncertain times ahead because of the coronavirus outbreak.

The Oxford-based FTSE 250 company, which makes fluid storage, carrying and delivery systems for cars and vans, reported a 1.8% decline in revenues in the year to 31 December, to €3.41bn. Adjusted earnings before interest and tax declined 7.9% to €258.9m. Earnings per share were ahead 2.7% at €27.24, however.

The company acknowledged that global light vehicle production volumes had been challenging during the period, off 5.6% year-on-year.

But William Kozyra, chief executive and president, said: “2019 represents steady progress in our organic growth strategy for fluid systems.

“The group remains well-positioned for the automotive megatrends of reduced emissions and electrification.”

He conceded, however, there were also short-term concerns, noting: “The impact of the current Covid-19 outbreak is highly uncertain at this time. We are taking a number of mitigation actions, but some negative impact in the short term appears likely.”

Citi downgraded its rating on TI Fluid Systems from ‘buy’ to ‘neutral’, and lowered its target price to 140.0p, on “volume uncertainty”.