TI Fluid Systems PLC (LSE:TIFS) said margins came under pressure in the first half as the auto industry was rocked by a shortage of microchips, war in Ukraine and Covid lockdowns in China.
But the manufacturer of automotive fluid storage and delivery systems stuck to its full-year outlook despite “market uncertainties”.
However, the group also slashed its dividend by almost half to €1.
“We are maintaining our previously issued full year 2022 outlook guidance,” Hans Dieltjens, chief executive officer and President, said.
“While market uncertainties and economic risks persist, we anticipate that full year production volumes will be at, or slightly above 2021 levels, as microchip availability gradually improves, and that inflationary cost increases will continue, albeit at a slower pace.”
For the six months to end of June, adjusted EBIT margin of 5.4% was 3% lower than the same period previously.
On a constant currency basis, revenue fell 2.4%, underperforming global light vehicle production (GLVP) by 60 basis points
“We expect to achieve revenue outperformance vs GLVP, margins slightly below 2021 levels and historical levels of cash flow conversion,” Dieltjens added.