Ti Fluid Systems posts H1 profit beat, reaffirms FY margin guidance

8th Aug 2024 09:04

(Sharecast News) - Automotive components manufacturer TI Fluid Systems posted interim profits that came in ahead of expectations on Thursday and said it was confident that adjusted underlying earnings margins would continue to expand throughout FY24.

TI Fluid said adjusted pre-tax earnings were up 2.7% year-on-year at €135.5m, beating market expectations for a print of €131.0m, while EBIT margins expanded from 7.5% to 7.9%, above the 7.4% targeted by the group.

Revenues dropped 1.4% on a constant currency basis to €1.7bn but bookings increased 11% to €1.5bn, including €600.0m worth of electric vehicle wins.

Looking forward, TI Fluid stated that the productivity and efficiency measures put in place at the start of FY24 had reaffirmed its confidence in expanding adjusted EBIT margins moving ahead.

"As a result, we are increasing our full-year adjusted EBIT margin expectation to above 7.6% notwithstanding a slight decline in revenue at constant currency due to the recent softening of the 2024 industry outlook," said TI.

As of 0925 BST, TI Fluid shares were up 11.46% at 124.84p.

Reporting by Iain Gilbert at Sharecast.com