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Adient(ADNT) - 2024 Q3 - Quarterly Results
ADNTAdient(ADNT)2024-08-06 10:57

Financial Performance - Q3 FY2024 reported revenue was 3,716M,an83,716M, an 8% decrease compared to Q3 FY2023, with adjusted EBITDA of 202M, down 27% year-over-year[2] - Adjusted net income for Q3 FY2024 was 29M,withadjustedEPSdilutedat29M, with adjusted EPS diluted at 0.32, compared to a net loss of 11MandEPSdilutedof11M and EPS diluted of (0.12) in the same quarter last year[2] - Adient reported net sales of 3,716millionforthethreemonthsendedJune30,2024,adecreaseof8.43,716 million for the three months ended June 30, 2024, a decrease of 8.4% compared to 4,055 million for the same period in 2023[19] - The gross profit for the same period was 207million,downfrom207 million, down from 302 million, reflecting a gross margin of 5.6%[19] - Adjusted EBITDA for the three months ended June 30, 2024, was 202million,withanadjustedEBITDAmarginof5.4202 million, with an adjusted EBITDA margin of 5.4%[29] - Net income attributable to Adient was a loss of 11 million for the three months ended June 30, 2024, compared to a profit of 73millioninthesameperiodlastyear[19]−AdjustednetincomeattributabletoAdientwas73 million in the same period last year[19] - Adjusted net income attributable to Adient was 29 million, down from 93millioninthepreviousyear[39]−Adjusteddilutedearningspersharedecreasedto93 million in the previous year[39] - Adjusted diluted earnings per share decreased to 0.32 from 0.98year−over−year[44]−AdjustedEBITmarginwas3.40.98 year-over-year[44] - Adjusted EBIT margin was 3.4% of net sales, down from 4.8% in the same quarter last year[38] - Total net sales for the quarter were 3,716 million, compared to 4,055millionintheprioryear[38]CashFlowandDebt−Thecompanygeneratedfreecashflowof4,055 million in the prior year[38] Cash Flow and Debt - The company generated free cash flow of 88M in Q3 FY2024, compared to 143MinQ3FY2023[10]−Cashprovidedbyoperatingactivitieswas143M in Q3 FY2023[10] - Cash provided by operating activities was 158 million for the three months ended June 30, 2024, down from 203millionintheprioryear[26]−NetdebtasofJune30,2024,was203 million in the prior year[26] - Net debt as of June 30, 2024, was 1,647 million, an increase of 15.6% from 1,425millionasofSeptember30,2023[54]−TotaldebtasofJune30,2024,was1,425 million as of September 30, 2023[54] - Total debt as of June 30, 2024, was 2,537 million, slightly up from 2,535millionasofSeptember30,2023[54]−Thenetleverageratioincreasedto1.87asofJune30,2024,from1.52asofSeptember30,2023[53]SegmentPerformance−TheAmericassegmentreportedadjustedEBITDAof2,535 million as of September 30, 2023[54] - The net leverage ratio increased to 1.87 as of June 30, 2024, from 1.52 as of September 30, 2023[53] Segment Performance - The Americas segment reported adjusted EBITDA of 99M, while EMEA and Asia reported 25Mand25M and 101M, respectively, with overall performance impacted by lower customer production[8] - Adient's Americas segment generated net sales of 1,737million,whiletheEMEAandAsiasegmentsreported1,737 million, while the EMEA and Asia segments reported 1,288 million and 712million,respectively[29]−AdjustedEBITDAfortheAmericassegmentwas712 million, respectively[29] - Adjusted EBITDA for the Americas segment was 99 million, up from 95millioninthesameperiodlastyear,whileEMEAdroppedto95 million in the same period last year, while EMEA dropped to 25 million from 103million[31]OutlookandStrategicInitiatives−TheFY2024outlookwasupdatedtoreflectconsolidatedsalesofapproximately103 million[31] Outlook and Strategic Initiatives - The FY2024 outlook was updated to reflect consolidated sales of approximately 14.6B, down from a prior estimate of 14.8B−14.8B-14.9B[12] - Adient China is expected to drive double-digit growth in the coming years, focusing on innovation in seating comfort, connectivity, and sustainability[4] - The company is advancing automation and AI tools to improve operational efficiency and reduce costs[5] - The company is focused on deleveraging activities and expects to improve its financial position in the upcoming quarters[16] Costs and Expenses - Corporate-related costs increased to (23)millionfrom(23) million from (22) million year-over-year[31] - Restructuring and impairment costs rose to (16)millionfrom(16) million from (6) million in the same period last year[31] - The company reported a net financing charge of (48)million,slightlydownfrom(48) million, slightly down from (49) million in the previous year[31] - Adjusted equity income for Q2 2024 was 23million,down14.823 million, down 14.8% from 27 million in Q2 2023[46] - Net financing charges for Q2 2024 were 48million,unchangedfromQ22023[48]−OperatingcashflowforQ22024was48 million, unchanged from Q2 2023[48] - Operating cash flow for Q2 2024 was 158 million, a decrease of 22.1% compared to 203millioninQ22023[50]−FreecashflowforQ22024was203 million in Q2 2023[50] - Free cash flow for Q2 2024 was 88 million, down 38.5% from 143millioninQ22023[51]−AdjustedEBITDAforQ22024was143 million in Q2 2023[51] - Adjusted EBITDA for Q2 2024 was 202 million, a decline of 26.9% from 276millioninQ22023[51]−CapitalexpendituresforQ22024were276 million in Q2 2023[51] - Capital expenditures for Q2 2024 were 70 million, compared to $60 million in Q2 2023[50] Taxation - The company reported an adjusted effective tax rate of 40% for the three months ended June 30, 2024[17] - The effective tax rate for the three months ended June 30, 2024, was 88.9%, significantly higher than 22.8% in 2023[41]