TI Fluid Systems PLC (LSE:TIFS) said it achieved a "robust" performance in 2021, despite headwinds caused by microchip shortages and supply chain disruptions.
In a post-close trading update, the automotive parts supplier said it expects to report revenue of around €2.95bn for the year to 31 December 2021, 3% above global light vehicle production growth.
The adjusted EBIT margin is likely to be at, or slightly above, 7%, it said.
In a trading statement for the third quarter released in November last year, TI Fluids noted that Q3 revenue had fallen by 14.4% and global light vehicle production volumes were down nearly 20% year-on-year, hit by chip shortages, supply chain problems and volatile customer call-offs.
At the time, the company predicted that the challenging conditions would continue into 2022 with global light vehicle production volumes not expected to return to pre-COVID levels until 2023.
"The resilient performance through the challenging conditions faced in 2021 demonstrates the effectiveness of the group's business model, based on cost flexibility, solid cash generation capability and a global, experienced and committed workforce," the company said in today's statement.
Cash flow generation was strong during the year and adjusted free cash flow is forecast to meet expectations, it added.
TI Fluids also announced that its chair, Manfred Wennemer, is retiring and will step down following the company's AGM on 18 May 2022.
He will be succeeded by Tim Cobbold, currently senior independent director and chair of the remuneration committee. Cobbold, who joined the board of TI Fluids in November 2019, was formerly chief executive officer of FTSE-listed companies Chloride PLC, De La Rue PLC (LSE:DLAR) and UBM PLC.