StockMarketWire.com - Automotive fluid systems manufacturer TI Fluid Systems swung to a deep first-half loss, scrapped its interim dividend and said it would layoff 1,000 staff, as the Covid-19 pandemic hurts the global auto sector.

Pre-tax losses for the six months through June amounted to €352.7m, compared to a profit of €93.4m on-year, as revenue slumped 31% to €1.18bn.

Adjusted operating profit tumbled to €27.6m, down from €173.1m.

A structural cost reduction programme included the headcount cut, six full plant closures and two partial plant closures.

Related restructure expenses across 2020 and 2021 would be around €47m, with cumulative cash savings across 2020 through 2022 of around €94m.

The first-half results included a €304.6m non-cash charge, primarily relating to the 2015 Bain purchase of TI Automotive.

'The first six months of 2020 saw the impacts of an unprecedented global economic downturn resulting from the widening of the Covid-19 pandemic,' chief executive William L. Kozyra said.

'We continued to deliver solid revenue outperformance, positive profit and solid positive free cash flow generation despite the significant headwinds,' he added.

'Our balance sheet, liquidity and cash positions remain strong.'

'These actions and initiatives are significant and will assist the Group's financial performance in 2020 and beyond.'

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