TI Fluid to pay dividend after Q1 revenue drop

Revenue for the three months to the end of March fell 15.6% to €717.3m (£626m) from a year earlier. Excluding currency movements, revenue fell 16%.

TI Fluid said shareholders would receive 5.2p a share as a final dividend for the year to the end of December on 29 May subject to approval at its annual general meeting. The board and senior management have taken temporary 10% pay cuts and most other workers have agreed to a temporary 5% reduction.

Revenue in the Asia Pacific region fell 24.9% at constant currency to €181.5m and in Europe and Africa revenue dropped 14.3% to €303.3m. North America revenue fell 10.2% at constant currency to €219.4m and Latin America was down 7% to €13.1m.

TI Fluid makes automotive fluid storage for light vehicles. It said suspension of economic activity because of Covid-19 caused a 23% drop in light vehicle production in the first quarter and that its business outperformed the wider market.

The FTSE 250 company withdrew its outlook for 2020 because of "unprecedented uncertainty" but said it was well prepared to manage the coronavirus crisis. After drawing €146m of €192m in credit facilities its liquidity position was €600m at the end of March.

"After carefully considering the group's Q1 performance and overall liquidity and financial position, supports payment of the 2019 final dividend as previously announced," the company said.

TI Fluid said it had frozen hiring across its business, postponed salary increases and used worker furlough programmes to cut costs and conserve cash.