Plymouth, Michigan – Adient, the automotive seat and interiors company, had total net sales of $3.5bn in the second quarter 2020, down 16.96% on the same period last year. Adjusted EBITDA across the business rose 6.9%, and reached $231m in the second quarter of 2020.
In the company's Americas business, net sales fell 14.3% between the second quarter of 2019 and the second quarter of 2020, to $1.64 bn. This compares with $1.92 bn in the equivalent period in 2019.
Adjusted EBITDA in the division rose by 211.8%, to $106m in the second quarter of 2020. This compares with $34m in the 2019 period. Adient said that its business in the Americas benefitted from lower sales, general and administration costs, lower raw materials costs and lower launch costs in the quarter. These were partially offset by lower volumes as customers shut down because of coronavirus.
Net sales in the company's EMEA business fell by 16.3% between the second quarter of 2019 and the second quarter 2020, to $1.4 9bn. This compares with $1.78 bn in the equivalent period last year.
Adjusted EBITDA in the division rose by $3m to $62m in the second quarter of 2020, compared to $59m in the 2019 quarter.
As with the Americas, the company reduced launch costs, and cut sales, general and administration costs. However, once more, coronavirus shutdowns took the shine off the numbers.
In Asia, much earlier lock downs in China lead to a significant reduction in production volumes there. This was partly offset by cost cutting measures.
Net sales in Asia were down by 25.88% to $444m in the quarter, from $599m in the same quarter last year. Adjusted EBITDA in the region fell by 48.78% and amounted to $63m in the quarter.
Adient said it expects the coronavirus pandemic to have a significant global economic impact on consumers. 'We expect lower demand of vehicles and a smaller post-crisis automotive industry for some time, it stated.
Adient also promised it will resize the business to drive profitability and cash generation.