“After carefully considering the group’s Q1 performance and overall liquidity and financial position, supports payment of the 2019 final dividend”
() reported a sharp fall in sales in the first quarter of the year as demand for its products by car manufacturers was hit by the coronavirus pandemic, but said it will still pay its dividend.
The FTSE 250 group’s revenues of €717.3mln in the quarter were down 15.6% versus last year, compared to a 23% decline in production volume in the global light vehicle market as a whole.
By product segment, fluid carrying systems (FCS) sales were down 17% to €478.6mln and fuel tank and delivery systems (FTDS) were down 14% to €371.2mln.
In Europe, Africa and Asia the company’s sales in FCS and FTDS outperformed the market, while in North America they were in line with the market.
TIFS said to significantly reduce operating costs and conserve cash it has frozen hiring and temporarily reduced salaries 5% across all locations, as well as using government worker furlough programs, with the board taking a temporary 10% pay cut.
After doing this, the board said that “after carefully considering the group’s Q1 performance and overall liquidity and financial position, supports payment of the 2019 final dividend” of 5.94 euro cents per share.
The group had liquidity of approximately €600mln at 31 March, after drawing down €146mln of its €192mln revolving bank facilities.
Shares in the company were down almost 1% to 169.6p in early trading on Monday.
Read More: TI Fluid Systems PLC still pays dividend after cutting salaries using furloughing