PLYMOUTH, Mich., April 15, 2019 /PRNewswire/ -- Adient (NYSE:
ADNT), a global leader in automotive seating, today reported
certain preliminary financial results for the quarter ended
March 31, 2019. Revenue in
Q2FY19 is expected to be approximately $4.2B versus $4.6B
in Q2FY18. Q2FY19 Adjusted EBITDA is expected to be between
$185M and $195M, versus $362M
in the prior-year quarter. Free cash flow (operating cash
flow, less capital expenditures) for the quarter is expected to be
between $45M and $60M, versus $(146)M in the prior-year quarter. An
increased focus on working capital (e.g. reduction in aged
receivables), lower capital expenditures and benefits associated
with quarter close timing differences between Q2FY19 and Q2FY18
helped drive the year-on-year improvement.
Additional details related to Adient's second quarter results
and outlook for the remainder of FY19 will be provided on
May 7 during the company's Q2FY19
earnings call.
"Adient's preliminary Q2 results demonstrate that the actions
taken to improve the company's operational and financial
performance are taking hold," said Doug Del
Grosso, president and chief executive officer. "As we
execute additional actions and remain focused on commercial and
operational excellence, we expect to see the company's second half
financial performance outpace its first half results with the rate
of improvement continuing to accelerate as we exit fiscal
2019."
Realignment of reportable segments
Today, Adient also
announced that during the second quarter, the company reorganized
certain elements of its management structure which resulted in a
realignment of its reportable segments (Americas, EMEA,
Asia Pacific). The
organizational changes, resulting in a flatter organization with
three fully integrated regions, are designed to speed up
decision-making and drive accountability. Adient's second
quarter financial results will reflect this segment
realignment. Also, as a result of declines in the
earnings of SS&M operations since the end of the prior fiscal
year, Adient is assessing the recoverability of its long-lived
assets and expects to record a non-cash long-lived asset impairment
charge between $50M and $125M during Q2FY19.
Adient to discuss Q2FY19 financial results on May 7
Adient will host a conference call on May 7,
2019 at 8:30 a.m. (ET) to
discuss its second quarter fiscal 2019 financial results. The
call will be hosted by Adient's president and chief executive
officer, Doug Del Grosso, and
executive vice president and chief financial officer, Jeff Stafeil.
A live webcast of the quarterly earnings conference call will be
available on the investor section of the Adient website
(http://investors.adient.com/).
Use of Non-GAAP Financial Information:
This press
release contains expectations of Adient's financial results which
are not presented in accordance with U.S. GAAP. Specifically,
expected Adjusted EBITDA is defined as income before income taxes
and noncontrolling interests, excluding net financing charges,
qualified restructuring and impairment costs, restructuring related
costs, incremental "Becoming Adient" costs, net mark-to-market
adjustments on pension and postretirement plans, transaction
gains/losses, purchase accounting amortization, depreciation,
stock-based compensation and other non-recurring items.
Adient's management believes this information is useful to
investors by providing important supplemental information regarding
financial and business trends relating to Adient's financial
condition and results of operation. Investors should not
consider Adjusted EBITDA as an alternative to related GAAP
measures. Management uses Adjusted EBITDA to measure the
performance of Adient's operations for internal reporting, planning
and forecasting purposes.
About Adient:
Adient is a global leader in automotive
seating. With 84,000 employees
operating in 214 manufacturing/assembly plants in 32 countries
worldwide, we produce and deliver automotive seating for all
vehicle classes and all major OEMs. From complete seating systems
to individual components, our expertise spans every step of the
automotive seat-making process. Our integrated, in-house skills
allow us to take our products from research and design all the way
to engineering and manufacturing – and into more than 25 million
vehicles every year. For more information on Adient, please
visit adient.com.
Cautionary Statement Regarding Forward-Looking
Statements:
Adient has made statements in this document that
are forward-looking and, therefore, are subject to risks and
uncertainties. All statements in this document other than
statements of historical fact are statements that are, or could be,
deemed "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. In this document,
statements regarding Adient's future financial position, sales,
costs, earnings, cash flows, other measures of results of
operations, capital expenditures or debt levels and plans,
objectives, outlook, targets, guidance or goals are forward-looking
statements. Words such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," "should," "forecast,"
"project" or "plan" or terms of similar meaning are also generally
intended to identify forward-looking statements. Adient cautions
that these statements are subject to numerous important risks,
uncertainties, assumptions and other factors, some of which are
beyond Adient's control, that could cause Adient's actual results
to differ materially from those expressed or implied by such
forward-looking statements, including, among others, risks related
to: the impact of tax reform legislation through the Tax Cuts and
Jobs Act, uncertainties in U.S. administrative policy regarding
trade agreements, tariffs and other international trade relations,
the ability of Adient to execute its SS&M turnaround plan, the
ability of Adient to identify, recruit and retain key leadership,
the ability of Adient to meet debt service requirements, the
ability and terms of financing, general economic and business
conditions, the strength of the U.S. or other economies, automotive
vehicle production levels, mix and schedules, energy and commodity
prices, the availability of raw materials and component products,
currency exchange rates, the ability of Adient to effectively
integrate the Futuris business, and cancellation of or changes to
commercial arrangements. A detailed discussion of risks related to
Adient's business is included in the section entitled "Risk
Factors" in Adient's Annual Report on Form 10-K for the fiscal year
ended September 30, 2018 filed with
the SEC on November 29, 2018 and
quarterly reports on Form 10-Q filed with the SEC, available at
www.sec.gov. Potential investors and others should consider these
factors in evaluating the forward-looking statements and should not
place undue reliance on such statements. The forward-looking
statements included in this document are made only as of the date
of this document, unless otherwise specified, and, except as
required by law, Adient assumes no obligation, and disclaims any
obligation, to update such statements to reflect events or
circumstances occurring after the date of this document.
In addition, this document includes certain projections provided
by Adient with respect to the anticipated future performance of
Adient's businesses. Such projections reflect various assumptions
of Adient's management concerning the future performance of
Adient's businesses, which may or may not prove to be correct. The
actual results may vary from the anticipated results and such
variations may be material. Adient does not undertake any
obligation to update the projections to reflect events or
circumstances or changes in expectations after the date of this
document or to reflect the occurrence of subsequent events. No
representations or warranties are made as to the accuracy or
reasonableness of such assumptions or the projections based
thereon
ADNT-FN
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SOURCE Adient