Revenue down, EBITDA up at Adient in Q1

Michigan, US – Revenue at seat maker Adient for its first quarter of 2024, which ended on 31 December 2023, fell by 1% from the 2023 quarter. It dropped to $3.660bn, down from $3.699bn the year before.

Adjusted EBITDA was up by 2%, from $212m to $216m. This was the seventh consecutive quarter of year-on-year improvement.

The company said that its “diverse customer and portfolio mix” helped to reduce the impact of strike action in the US automotive industry, with earnings remaining in line with expectations.

“The company successfully navigated strike-related disruptions through an unwavering focus on day-to-day execution,” said Jerome Dorlack, who assumed the roles of president and CEO at the end of 2023 on the retirement of Doug Del Grosso.

Looking regionally, revenues were down by 4% in the Americas, from $1.72bn in the 2023 quarter to $1.65bn in the 2024 quarter. Adjusted EBITDA was up by 16%, to $80m.

In EMEA, revenues rose by 7%, from $1.18bn to $1.27bn, while there was a sharp recovery in adjusted EBITDA, increasing by 61% to $45m, with currency effects having an impact.

Both metrics fell in Asia, with sales dropping 6% to $770m, and adjusted EBITDA falling by 17% to $114m. These decreases were attributed to the timing of commercial recoveries, and changes to production programmes.

The company has updated its full year guidance for 2024 to reflect Q1 performance, and current market conditions. It expects revenue to fall in the range $15.4-15.5bn, with adjusted EBITDA projected to be $985m.