Global manufacturer of automotive fluid carrying systems and tanks, TI Fluid Systems (TIFS) reported a 16% fall in first quarter revenues to $717m, but confirmed the payment of the final 2019 dividend. The shares nudged up 1% to 172p.
The business continued to perform better than underlying global light vehicle production, which saw a 23% drop in activity in the three months to 31 March 2020, due to global lockdown measures.
As expected the Asia-Pacific region saw the brunt of the slowdown, with revenues there dropping 25% to $182m, as the lockdown came into effect from the end of January, besting the 30% drop in regional vehicle production volumes.
Europe and Africa was impacted towards the end of the quarter and saw a lower sales decline of 14% to $303m, around 5% better than the underlying market. North American revenues fell 7.4% to $219m, in-line with the market.
All but essential employees have transitioned to home working and social distancing measures have been implemented in the manufacturing plants that remain open.
The board and senior management have taken a 10% salary cut and other salaried employees have agreed a 5% reduction. Actions have been taken to reduce operating costs while management are also monitoring capital allocation and working capital needs in relation to regional production volumes.
At the end of March TI Fluid drew down €146m of its €192m revolving credit facilities, boosting overall liquidity to €600m. As previously announced the company will pay the 2019 final dividend of 5.94 euro cents, which converts into 5.2 pence per share, payable on 29 May.