Plymouth, Michigan – Adient, the automotive seating and interiors giant, generated sales of $3.5bn in the second quarter of 2022, down 8.2% on the same period last year.
Adjusted EBITDA across the business fell 44.5% to $181m in the quarter.
2022 continues tough for Adient in Q2
Del Grosso: challenging environment
The company said it suffered because of supply chain disruption, higher commodity prices, labour costs and inflationary pressures. The downward pressures on performance were magnified by the war in Ukraine and Chinese coronavirus lockdowns.
'Adient and the industry continue to operate in a challenging environment driven by intensifying external pressures,' said CEO Doug Del Grosso.
In the company's Americas business, sales declined by 2.9% between the second quarter of 2021 and 2022, to just under $1.6bn. Adjusted EBITDA in the division fell 28.1% to $46m.
It blamed elevated commodity prices, lower volumes, higher freight costs and smaller margins on materials. These were offset by lower launch costs, less waste, and lower selling, general and administration costs.
Sales in the company's EMEA business sales 25.6% between the second quarter of 2021 and the second quarter 2022, at $1.2bn. Adjusted EBITDA fell from $141m in the 2021 quarter to £30m in the 2022 quarter.
Adient blamed this performance on higher labour and overhead costs, as well as higher freight rates, lower volumes, and lower margins. These were partly offset by efficiencies in selling general and administration costs.
In Asia, sales were up by 23.0%, at $723m, in the quarter. This compares with $588m in the same quarter last year. Adjusted EBITDA in the business fell by 13.2% to $105.0m in the quarter.
Business results from the region were hit by lower equity earnings, and lower volumes because of widespread coronavirus lockdowns in China.
