Adient Reports Decline in Financial Performance

By Tamara Parker • Tuesday, January 28 15:29 • Permanent Link

Adient plc, a global automotive seating supplier, released its financial results for the three months ended December 31, 2024. The company reported a decrease in net sales from $3,660 million in 2023 to $3,495 million in 2024. The gross profit also declined from $246 million in 2023 to $216 million in 2024.

The company's earnings before interest and income taxes (EBIT) decreased from $111 million in 2023 to $93 million in 2024. Net financing charges remained relatively stable at $44 million in 2023 and $45 million in 2024. The net income attributable to Adient decreased from $20 million in 2023 to $— in 2024, with diluted earnings per share dropping from $0.21 in 2023 to $— in 2024.

Adient's total assets decreased from $9,351 million as of September 30, 2024, to $8,533 million as of December 31, 2024. The company's total liabilities and shareholders' equity also decreased from $9,351 million as of September 30, 2024, to $8,533 million as of December 31, 2024.

The company also provided segment results for the Americas, EMEA, and Asia for the same period. The adjusted EBITDA margin for the Americas decreased from 5.3% in 2023 to 4.9% in 2024, while the EMEA segment's adjusted EBITDA margin decreased from 3.5% in 2023 to 1.9% in 2024. The Asia segment's adjusted EBITDA margin remained relatively stable at 14.8% in 2023 and 14.4% in 2024.

Adient also disclosed non-GAAP measures, including adjusted EBIT, adjusted EBITDA, adjusted net income attributable to Adient, adjusted effective tax rate, adjusted earnings per share, adjusted equity income, adjusted interest expense, free cash flow, net debt, and net leverage ratio. These measures are used by the management to evaluate the company's operating performance and forecast future periods.

The company reported that its net debt increased from $1,460 million as of September 30, 2024, to $1,542 million as of December 31, 2024, leading to a rise in the net leverage ratio from 1.66 in September 2024 to 1.79 in December 2024.

These figures reflect Adient's financial performance for the three months ended December 31, 2024, and the changes compared to the same period in 2023. As a result of these announcements, the company's shares have moved 3.0% on the market, and are now trading at a price of $17.83. If you want to know more, read the company's complete 8-K report here.

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