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(Sharecast News) - TI Fluid Systems said on Wednesday that full-year results were set to be "slightly ahead" of expectations after a continued strong performance in the fourth quarter.
In an update for the year to the end of December 2023, the company said margin expansion was driven by commercial performance and cost reduction actions. These were partially offset by inflation, volatility in customer demand and adverse currency movements, it said.
As a result, it now expects to report FY23 results slightly ahead of expectations, with revenue of about €3.5bn, representing year-on-year double-digit growth on a constant currency basis.
TI Fluid expects adjusted EBIT margin expansion to around 7.4% and adjusted free cash flow of approximately €140m, a conversion of circa 35% of adjusted EBITDA.
The group said that in 2023 it made good progress towards its mid-term targets for revenue of €3.8-4.2bn and a return to a double-digit adjusted EBIT margin.
"Longer-term, we are confident that the business is well-positioned to capitalise on the opportunities of electrification while leveraging the strengths of our conventional portfolio to drive sustainable, profitable long-term growth," it said.
