Adient’s shares decline on quarterly loss

Worldwide
Published:  09 May, 2019

The automotive seating manufacturer posted a net loss of US$149 million in its fiscal second quarter compared with US$168 million in the same quarter of 2018.

Adient’s net sales totalled US$4.23 billion in the second quarter of the Company’s fiscal 2019, down from US$4.6 billion in the corresponding quarter of the previous year. Net sales in Adient’s Seating and Seat Structures & Mechanisms (SS&M) division totalled US$1.92 billion, down from US$2.3 billion a year ago. Net sales in the Interior segment were US$1.94 billion, down from US$2.3 billion in the prior-year quarter.

Adjusted EBITDA in the Americas more than halved in the second quarter, totalling US$34 million (Q2 2018: US$98 million). In the EMEA, adjusted EBITDA was US$59 million (Q2 2018: US$130 million) and in Asia it totalled US$123 million (Q2 2018: US$157 million). According to Adient, these declines were due to lower volume across all geographic regions, increased SG&A and product launch costs in the Americas, as well as lower volume, negative impact of foreign currencies and product launch inefficiencies in the EMEA.

Adient’s shares are reported to have declined about 9.8% upon the announcement of results.