Global automotive seating specialist Adient announced disappointing third quarter results.
Adjusted-EBIT and adjusted-EBITDA were $206m and $319m, down 38% and 25% respectively, while adjusted EPS were off 42% to $1.45.
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Seating adjusted EBITDA fell to $344m from $414m. The supplier said launch inefficiencies in North America (NA) and a lower mix of higher margin component sales were the primary reasons for the decline.
Interiors adjusted EBITDA was flat at $19m.
"Lower volumes in NA and negative operating performance in Europe continue to weigh on results," the supplier said.
Sales rose 12% year on year to $4,494m thanks to the Futuris acquisition, China JV consolidation, and favourable foreign exchange.
Seating sales rose 11% to $2,407m or by 8% excluding FX effects and and the impact of JV consolidation.
Interiors sales were up 6% year on year to $2,358m but down 1% excluding FX effects.
Despite this, net income plunged 73% to $54m.
Outlook
Adient expects full year revenue of about $17.5bn, adjusted-EBITDA of $1,250m and adjusted net income between $535 and $555m.
"We are moving forward with great urgency to accelerate the pace of our operational improvements," said Fritz Henderson, interim chief executive officer, in a statement.
