TI Fluid Systems Raises Guidance and Changes Dividend Policy

Shares in TI Fluid Systems have seen a significant increase after the company raised its 2023 guidance and announced changes to its dividend policy. The UK-based car-fluid-storage manufacturer expects adjusted earnings before interest and taxes margins to exceed 7%, driven by operational improvements, cost recoveries, and higher volumes. It now predicts a global light vehicle production of around 85 million units, up from the previous estimate of 83 million.

TI Fluid Systems also anticipates revenue to outperform expectations, with the second half of the year slightly below the first. For the six months ending June 30, revenue rose to €1.77 billion from €1.56 billion in the same period the previous year. The company's adjusted EBIT margin also improved from 5.4% to 7.5%.

As part of its new dividend policy, TI Fluid Systems plans to return €35.0 million to shareholders in 2023, a substantial increase from the previous amount of €13.0 million. Furthermore, the company has declared an interim dividend of 2.30 European cents per share, up from 1.0 European cent per share in the previous year.

These positive developments have resulted in a significant rise in share price, with an increase of 19% at 0808 GMT. TI Fluid Systems is confident in their growth prospects and aims to continue delivering value to shareholders.

By Elena Vardon