Despite reporting the significant net loss, the U.S. company beat Wall Street estimates and its stock price rose by nearly a third on August 6. The loss is attributed to approximately US$250 million deferred tax assets impairment, an additional US$50 million tax expense and US$34 million in restructuring related charges. Adient has been on a strategic turnaround course since 2016.
“Adient’s turnaround plan is on track as evidenced by our Q3 financial results, which improved sequentially for the second consecutive quarter,” said Adient President and CEO, Doug Del Grosso. “Benefits related to actions implemented earlier this year are gaining traction and more than offset significant industry weakness in the China market.”
Both investors and analysts are said to have responded well to the results, which have surpassed their expectations. Adjusted earnings per share was US$0.38 compared with US$1.45 per share during the third quarter last year, beating consensus estimates of US$0.34 per share.
Adient, based in Plymouth, Michigan, is a global supplier of automotive seating. With 84,000 employees operating in 214 manufacturing/assembly plants in 32 countries worldwide, the company produces and delivers automotive seating for all vehicle classes and all major OEMs.
