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May 5, 2020

Adient posts Q2 loss of US$19m

Adient has recorded a second-quarter net income loss of US$19m with revenue of US$3.5bn.

By Rhodri Morgan

Adient has recorded a second-quarter net income loss of US$19m with revenue of US$3.5bn.

The supplier was impacted by customer moves in the Americas and Europe to suspend vehicle production while operations in China slowly restarted.

Measures taken by Adient include:

  • Reducing pay of non-plant employees in the US (including Adient’s leadership team and board of directors fees)
  • Short-time work models across various countries in Europe
  • Other austerity measures designed to protect Adient’s cash flow and liquidity

“Although much uncertainty lies ahead, we are encouraged by the positive developments in China, where all of Adient’s 79 JV plants have reopened,” said an Adient statement. “The restart of Adient’s China operations provided a proven framework that was used to develop detailed restart procedures for Americas and EMEA, which are in the early stages of reopening.

“By working closely with our customers, Adient has identified the plants that will be first to restart based on our customers’ needs and supplier availability. We are prepared to ramp up operations as our customers return to work and increase vehicle production around the world.”

Adient employees are supporting their local communities and automaker customers through various manufacturing initiatives.

Teams throughout Europe and North America are participating in efforts such as the design and production of face protection and 3D printing parts for face shields.

“Adient is executing numerous actions to offset the effects of this global disruption, reduce our cash burn rate and increase our liquidity,” added Adient president and CEO, Doug Del Grosso.

“While we cannot predict how long this crisis will last, we know that it will pass — and when it does, Adient will be ready to get back to business.”

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