Ti Fluids reports lower sales on electric vehicle headwinds

Fluid storage provider TI Fluid has announced a slight decline in revenue of 0.4 per cent but a 6 per cent rise in total bookings to £586mn. 

The company engineers storage systems for electric vehicles (EVs), as well as heat management products. 

Revenue in Europe and the Middle East rose by 4.2 per cent, although total revenue was dragged down by a 10.8 per cent fall in the Asia Pacific region and a 3.4 per cent fall in the Americas. 

The company said that lower revenue in China was partially offset by strength in Japan and India.

“We have had a good start to 2024 reflecting our strong market position and agility as we capitalise on the strengths of our conventional portfolio and the opportunities of electrification,” chief executive officer and president of TI Fluids, Hans Dieltjens, said. 

“While there were fewer EV opportunities in the period, our total bookings in the first quarter have increased, demonstrating the benefits and resilience of our agnostic portfolio. Our strong focus on productivity is delivering the expected benefits to our bottom line,” Dieltjens said. 

After a frenzy of activity and hype in the last few years, the EV sector has suffered a drop in demand recently. Manufacturers have blamed high inflation and energy costs.

TI Fluid half kept its full-year guidance for 2024 unchanged, however, and expects a “flat to low-single digit constant currency revenue growth.”

“Productivity and efficiency initiatives” will increase the company’s earnings before interest and tax (EBIT) margin to 7.4 per cent, it said. 

“While it is early in the year, our first quarter performance underpins our confidence that we are on track to achieve our 2024 outlook.” Dieltjens said. “We remain focused on executing our Taking-the-Turn strategy and delivering on our mid-term targets.”

The company’s share price has been relatively stable in the last year after a dip in 2022.

Related posts

Former NBA owner invests in $100m women’s football multi-club group

It’s not just Waspi women, the government has taken everyone for fools

Honda and Nissan merger talks spark UK job fears