TI Fluid FY profits weighed down by restructuring costs, exceptional charge

(Sharecast News) - Automotive fluid storage business TI Fluid Systems said on Tuesday that statutory operating profits had sunk in FY24 due to higher restructuring costs and a non-cash write-down of intangible assets.

TI Fluid Systems said statutory operating profits were down 32.4% at €132.4m in FY24, while revenues slipped 4.4% to €3.36bn. On an adjusted basis, underlying earnings ticked up 0.5% to €260.8m as adjusted EBIT margins expanded 40 basis points to 7.8%.

The London-listed group stated a €40.6m exceptional charge related to the closure of its manufacturing facility in Ligonier, as well as the associated exit of the powertrain business, and a jump in restructuring costs from €13.4m to €37.4m were mostly to blame for the drop in FY profits.

Bookings remained strong at €2.7bn, down from €3.0bn, as did the group's balance sheet, with a net leverage position of 1.6X adjusted EBITDA at year-end.

Chief executive Hans Dieltjens said: "Our financial performance was driven by relentless commercial execution and the benefits of our intensified productivity and efficiency measures. We also continued to successfully execute our strategic priorities by further investing in our EV growth opportunities and maximising our conventional portfolio.

"Together we have accelerated our transition to electrification and ensured TI is well-positioned to continue to deliver on its vision and create value for all stakeholders as part of an enlarged group."

As of 0920 GMT, TI Fluid shares were down 0.051% at 196.50p.

Reporting by Iain Gilbert at Sharecast.com