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TI Fluid Systems PLC on Thursday said it expects to meet annual guidance despite expectations that inflationary cost increases will continue as revenue continues to rise.
Shares were down 6.9% at 123.70 pence each on Thursday morning in London.
The FTSE 250 company, which makes products including brake fluids and fuel tanks for cars and trucks, said revenue continues to grow at a "favourable pace" despite being constrained by the group's "lower participation on the mainly domestic [Battery Electric Vehicle] platforms in the Chinese market where significant BEV growth is being supported by local incentives".
Further, "inflationary cost increases are expected to remain, and the group continues to actively pursue ongoing cost recoveries and price adjustments," TI Fluid Systems said.
For the nine months that ended on September 30, group revenue amounted to €2.41 billion, up 10% from €2.18 billion a year ago.
In particular, Fluid Carrying Systems revenue increased by 16% to €1.37 billion from €1.19 billion, and North America region generated the most revenue of €665.2 million compared to other regions. This is up 27% from €525.1 million a year ago.
In the third quarter of 2022, revenue amounted to €846.4 million, up 29% year-on-year.
Looking ahead, TI Fluid expects to report full-year results in line with current consensus market expectations, with full-year revenue growth consistent with or slightly below global light vehicle production growth.
The company also expects an annual adjusted margin of around 6.0%.
In August, TI Fluid said revenue in the six months that ended on June 30 rose by 2.4% to €1.56 billion from €1.52 billion a year earlier. Revenue was down 2.4% at constant currency rates, however.
Pretax profit fell 56% to €19.8 million from €44.5 million, as distribution costs rose by 16% to €53.3 million from €46.1 million a year earlier.
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