Plymouth, Michigan — Adient, which makes automotive seating and interior components, saw full year 2017 earnings fall by $500m to $16.2 bn compared with 2016. However, earnings before interest and tax in 2017 was $1.1bn, compared with $399m in 2016.
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This is due in part to a significant reduction in selling, general and administration costs which almost halved to $691m in 2017 compraed with $1.2bn in 2016 and a 52% increase in equity income which reached $522m in 2017 compared with $344 m in 2016.
The company operates two segments: seating and trim. Seating accounted for $1.15bn at the EBIT level in 2017 compared with just over $1bn in 2016. The margin in the business changed from 6.4% in 2016 to 7% in 2017.
Over the course of 2017 Adient booked $20m in favourable legal settlements as income. It also gained a further $24m from changes to pension accounting over the year.
Bruce McDonald, CEO said ‘Adient’s strong performance in FY2017 demonstrates the company’s strengthening market position and commitment to delivering earnings growth and cash generation.’
Looking ahead to 2018, the firm expects to see revenue of between $17-17.2 bn, Ebit between $1.28 and $1.33 bn and it expects to generate around $500m free cash.