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November 12, 2018

Adient books fourth quarter loss after one-off charges

Adient has reported a substantial fourth quarter 2018 net loss and suspended its quarterly cash dividend, citing one-off non cash charges.

By Olly Wehring

Adient has reported a substantial fourth quarter 2018 net loss and suspended its quarterly cash dividend, citing one-off non cash charges.

The Plymouth, Michigan supplier booked a net loss of US$1,355m and a net loss per share of $14.51 though earnings per share were $1.30 after adjustments.

Adient said the net loss was impacted by around $1.5bn of one-time, non-cash charges, primarily associated with asset impairments and the recording of valuation allowances against certain deferred tax assets.

Adjusted EBIT and adjusted EBITDA were $149m, down 50% year on year, and $251m (down 36%), respectively. Adjusted net income was off 44% to $122m.

Revenue rose 4.4% year on year to $4,145m. Adient said the Futuris acquisition combined with increased volume drove the year on year improvement.

Unconsolidated seating and SS&M revenue increased to US$2.2bn (up 3% excluding exchange effects).

Adient said it was prioritising resources on the most severe under performing manufacturing sites and future launches with the focus on SS&M and Seating Americas.

"All facets of the business are under review to identify profit improvement and cash generation opportunities.

"The challenges faced in 2018 will continue to have a significant impact in fiscal 2019."

Full year fiscal 2019 guidance will be provided in January.

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