Plymouth Michigan — Global automotive seat maker Adient said preliminary sales and adjusted EBITDA for the second quarter are down sharply.
Warning from Adient in preliminary Q2 numbers
DelGrosso, Adient CEO
The company had total sales of $ 4200 m in preliminary Q2 2019. This is down by 8.7% on the previous financial year.
Adjusted EBITDA across the business fell between 48.9% and 46.1%, and reached between $185m and $195m, according to the preliminary Q2 2019 numbers.
The company has chased late payments, and has cut capital expenditure in the quarter. This has improved cash flow to between $45 and $65m, compared to -$146m in Q2 2018.
The company is also realigning its business to give it three distinct reportable segments, Americas, EMEA and Asia Pacific and these new regions will be reflected in the full second quarter numbers. These are due to be released on 7 May 2019.
In addition, the company said that there had been 'declines in earnings of SS&M [seating division] operations since the end of the prior financial year'. This is likely to lead to an asset impairment charge of between $50 and $125m in the second quarter.
Doug Del Grosso, CEO, said: 'The actions to improve operational and financial performance are taking hold. We expect to see the company's second half financial performance outpace its first half results.'
| Adient preliminary Q2 2019 numbers ($m) | |||
|---|---|---|---|
| Group | Q2 2019 | Q2 2018 | Change % |
| Provisional Revenue | 4200 | 4600 | -8.7 |
| Adjusted EBITDA | 185 - 195 | 362 | -48.9 to -46.1 |
| Margin % | 4.4 - 4.6 | 7.9 | |
| Source: Adient | |||
