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/).
SOURECE: Adient
