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TI Fluid Systems PLC on Thursday cut its dividend by 25%, as it fell into loss in 2022 mostly due to a huge impairment charge.
TI Fluid Systems is an Oxfordshire-based maker of automotive fluid storage, carrying, delivery, and thermal management systems for light vehicles.
For 2022, revenue was €3.27 billion, up 11% from €2.96 billion in 2021. In Europe and Africa region, revenue rose to €1.21 billion, up 6.0% from €1.14 billion. It was up 5.3% to €1.11 billion from €1.06 billion in Asia Pacific and up 26% to €895.8 million from €713.6 million in North America.
However, TI Fluid Systems swung to a €275.7 million last year from a €54.1 million profit in 2021. This was primarily due to €317.4 million in exceptional charges, compared to just €11.8 million the year before. The company said the exceptional charge mostly was an impairment of goodwill due to a reduction in the current value of future cash flows.
Before the exceptional charges, pretax profit still was down 37% to €41.7 million from €65.9 million.
Adjusted earnings before interest and tax amounted to €180.0 million, down from €212.6 million in 2021. Adjusted Ebit margin was 5.5%, down from 7.2% in 2021.
Chief Executive Officer Hans Dieltjens said: ‘2022 was our centennial year during which continued to lay the foundations for securing the group’s future with 37% of our booking awards on BEV vehicles, in addition to year-on-year revenue growth.
TI Fluid declared a final dividend of 1.54 euro cents for 2022, taking its total dividend to 2.54 euro cents, down 25% from 3.39 cents for 2021.
Looking ahead, TI Fluid said it expects adjusted Ebit margin to expand above 6% this year.
Shares were down 0.9% at 103.68 pence each on Thursday morning in London.
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