Adient expects progress in fourth-quarter results

Worldwide
Published:  07 August, 2020
Credit: Adient

The U.S. headquartered automotive seating and components manufacturer said its third-quarter results for fiscal 2020 “mirrored the overall industry”, with zero sales in April and a steady improvement into May and June.

Adient sales for the third-quarter of the company’s fiscal 2020 totalled US$1.6 billion, down about US$2.6 billion or 60% on a year-over-year basis, due to production stoppages at customers across Europe and the Americas. Net loss for the quarter amounted to US$325 million and a loss of US$3.46 per share. Driven by the significant reduction in sales, adjusted EBITDA loss was US$122 million, down US$327 million compared with the same quarter of the previous year. Adient has estimated the impact of the Covid-19 pandemic at around US$400 million for the quarter. Doug Del Grosso, President and CEO, Adient, said sales improved month-over-month in third quarter, from essentially zero in April to about 75% of pre-Covid levels, but production has not fully returned to pre-Covid levels.

In Seating, Jeff Stafeil, Executive Vice President and CEO, Adient, said that “equity income for the quarter was up US$8 million or 15% year-over-year, a very good performance as a result of our China operations continuing to capitalize in the improving China markets”. Adjusted net income was down significantly year-over-year, recording a loss of US$261 million.

Adient said it expects continued progress through the fourth quarter, as production in Asia, excluding China, continues to ramp up based on customers’ schedules. Adjusted EBITDA for Q4 is expected to range between US$180 million and US$200 million.