Adient’s adjusted net income fell 52% to US$59 million and revenue during the quarter declined 5% to US$3.92 billion. Sales totalled US$3.9 billion, down 4% year-on-year, excluding the impact of foreign exchange rates. Adjusted EBITDA for the quarter was US$215 million, down US$35 million or 14% year-on-year, mainly impacted by lower volumes in the mix within the Americas and Asia. The Company said that between US$7 million and US$10 million of headwind related to the labour strike at General Motors was included in the results for the Americas.
According to Adient, the latest economic data suggests a “stabilisation”, or “no sign of worsening or strengthening” in the industry. In its outlook for full year 2020, the supplier expects China production to “stabilise” but lower a production in other markets throughout Asia, such as Thailand and Korea. Other uncertainties and risks mentioned by Adient in its earnings call include Brexit and the European emission standards. Key focus areas such as operational improvements, launch management, cost containment and commercial discipline are expected to drive earnings growth in fiscal year 2020, when consolidated sales are expected to range between US$15.6 billion and US$15.8 billion.
Adient’s main clients include Toyota, GM, BMW, Mercedes, Skoda and Tesla.