Plymouth, Michigan — Adient a global automotive seating and interiors company had total sales of $4.2 bn in second quarter of 2019. This was down 8% on the equivalent period last year.
Adjusted EBITDA across the business fell 43.9% and reached $216 m in the second quarter of 2019.
The company's Seating business had sales which fell 17.7% between Q2 2018 and Q2 2019 . They reached $1.9 bn in the Q2 2019 period. This compares with $2.3 bn in the equivalent period last year.
At the same time, Adjusted EBITDA in the division fell 2.1% . It reached $381 m in the first quarter of 2019. This compares with $389 m reached in the equivalent period last year.
'Significant production cuts in China drove the decline,' Adient explained. Foreign exchange headwinds accounted for 6% of the 18% reduction.
The decline in Chinese business through the Yanfeng joint venture reduced the company's by around $30m. In the second quarter of 2018, the company gained $63m from its joint venture, compared with $93 in the second quarter of 2018.
The company also took non-cash impairment charges of $66 m (before tax) on assets in the seating division. It also took a further impairment charge of $299 m related to goodwill in the business. It also paid consultants $7 m for advice on the seating business in Q2 2019.
