Here is a summary of the trading statement from TI Fluid Systems PLC for the third quarter and the nine months ended September 30, 2024
Performance Highlights
Revenue at constant currency decreased by 2.9% year-to-date, with a more significant decline of 5.9% in Q3 due to challenging market conditions.
Total bookings remained on track, with a 9% increase to €1.8 billion, attributed to their propulsion agnostic product portfolio and success with Local Chinese OEMs.
The company implemented additional structural and short-term actions in Q3 to improve operational efficiency and productivity.
A €40 million share buy-back program was completed, purchasing 24.1 million shares (approx. 4.6% of the companys issued share capital) for cancellation.
Regional Performance
EMEA revenue increased by 5.4% at constant currency, including a contribution from the Cascade Engineering Europe acquisition. This growth outperformed the decline in light vehicle production volumes in the region.
Asia Pacific revenue decreased by 9.0% at constant currency, while light vehicle production declined by only 1.0%. The company experienced lower revenue in China due to reduced Global OEM production.
Americas revenue was down 7.3% at constant currency, compared to a 0.9% reduction in light vehicle production. The exit of a less profitable product line and destocking by a major OEM customer impacted performance.
Outlook
TI Fluid Systems expects a low to mid-single-digit decline in FY 2024 revenue at constant currency compared to FY 2023 due to softening market volumes.
Efficiency and productivity measures are being implemented to offset the impact of market softening.
Full-year Adjusted Free Cash Flow conversion is anticipated to be around 30% of Adjusted <mark style="background-color:yellow">EBIT</mark>DA or slightly below due to fluctuating customer production schedules.
The companys performance in the first nine months of 2024 has been resilient, given the challenging and uncertain global automotive market. TI Fluid Systems remains focused on its self-help activities, operational efficiency, and propulsion agnostic portfolio to navigate through these uncertain times.