Bruce. Thanks everyone. Good morning,
remarks The performance, Turning momentum. sense in Bruce team first is disappointing Adient's unacceptable. to the our working reignite urgency financial with both positive to quarter stated and as his a of was results
headwinds mechanisms the had XX, you structures a seat see significant can As results. Slide impact on and within on
format otherwise exclude focus primarily on one-time deferred in reported our right the the view adjusted with to GAAP skew with results left as size. charge associated formatted of adjusted results addition the asset is the or either our typical on the for quarter. page the our underlying and also numbers In results tax our adjusted that Adhering impacted re-measurement one trend commentary and These our We'll performance. results. various items time important nature in to
deferred item amortization. million primarily adjustments re-measurement tax restructuring of charge. becoming related largest special quarter, tax provisional and For the legislation charges $XXX Adient's related newly the asset, purchase resulting was accounting to enacted Adient a include Other the the US in
fell on adjusted part compared business. $XXX adjusted the EBIT EBITDA in adjusted period and operating $XX $XXX for quarter and million on, last the the million within driven last SS&M Moving large equity the with income million performance year, up same quarter the Meanwhile, year. versus respectively was by
was between I'll of overall was seating into Although, growth dig minute. which a unconsolidated in there emerging solid, YFAI the and results operating just diversions JVs a
net adjusted EPS just Finally, and year-over-year income down $XX and million XX% respectively. $X.XX per were and under shares
faced more come challenges operational Structures in on this namely I'll have Seat sales moment. plan, and execution While in in unexpected and we elaborate have our a Mechanisms. our
compared of million $X.X acquisition of North more to offset revenue more same JV Now an the consolidation let's America. detail. Slide Benefits first volumes of primarily period We in of sales year reported a XX. the increase quarter than impact Starting in with $XXX consolidated ago. billion, negative China Futuris and on breakdown lower our results
In impact on QX rate year to a addition, the as the had the by this last compared year foreign USD our was QX, in EURO to approximately to versus primary exchange $XXX of this XXXX. X.XX The driver period EURO million. positive average X.XX sales same quarter
outpaces Moving this Adjusting from the region versus Adient's interior the ago. sales Yanfeng low regard is remaining primarily the Broadly year-on-year revenue down for XX% X% XXXX FX production China our growth. sales slightly. strategic year significantly up through with network driven outcome now the stake FX was Unconsolidated in recognized interior a year-on-year. were in automotive were sales XX%. for about interiors our XX% through Unconsolidated JV speaking, strong. also both which in unconsolidated seating vehicle on QX, was experienced revenue sales ownership JV China approximately consolidated, grew in to that about up Adjusting margin periods, in and cockpit
bridge key periods. an to adjusted is provided the Moving to show XX, Slide drivers between
coming recall was If expenditures we depreciation, SG&A we'll year. include versus amount given approximately QX of of million million as predicting capital benefit of $XXX short related The exact the to EBITDA QX call, with last margin in excluding view and The our the X.X% versus and a our than resulting movements timing more the initiatives the year-over-year to fell progression of down which contributed EBIT. EBITDA points term said, engineering. years, you measures. primary meaningful of the using continue growth improvement in XXX year. earnings from provide further investment With of quarter status adjusted approximately corresponding last $XXX $XX measurement of margin the difficulty the planned picture, adjusted Big the that saving basis EBITDA drivers period between associated both million
of which higher the income performed equity China And year-on-year. FX. the to to is $XX quarter. unconsolidated during $X unconsolidated existed up better shown able Important and our is we last well million slide late I mix acquisition In YFAI. and adjusted mentioned Futuris a level specifically business for million. between The they results than a planned about moment on the note, contributed Our JV interiors were ago seating year consolidate total, and was
million keep versus the On point side, year. for of QX income $X pace out adjusting did was the equity million equity last million adjusting consolidation operational year's Currently, initiatives, investment the by impacted Unfortunately, as FX pricing QX $XX sales factors growth year to for combination impact seating negatively compared declined year's equity YFAI these JV growth in FX, will $X and driven I'll China to year-over-year. a up YFAI especially expect income last as not quarter. income expected results certain to mix, QX was decline continue customer first issues. this year-on-year headwind in we these factors are of intensify. last at The QX and such by headwinds the where with
items, a unfortunately amount positive XX% to profitability Despite chart partner SS&M have as to on approximately drivers with related have headwinds our limited. offset under illustrate, but the basis. $XXX the just of to to only is million a influence we EBITDA continue $XXX We work identify improve and million areas of these year-over-year totaled primarily mentioned to the we ownership stake, with which just business the did
is and produce outcome. in discussed January of we a number launch The business As launching the mentioned this demand at and to expectations on hard name it conference, year and to contributed team ability The of the to biggest for detail in the throughout rest premium as minute. stabilize far few. a the by Bruce a to related how to our steel to auto business. driven factors availability share complexity, the pressure by expect progress outpacing I'll working few our efficiencies capacity,
on reduction growth impacted earlier, As this $XXX under our engineering new in approximately the to variance. mix flow and to $XX through year-on-year resources, Spending for launch by under our million, Investments revenue accounted has as was at business program activity win. negatively million pricing mentioned revenue just bridge of captured future volume, support the increased increased million managers $XX profit. the
As these X advance costs production. incurred X in you of know, about are years to
as quarter. million of were $XX experience totaling by additional did the minor we $XX most a for lower Growth part inefficiencies in mostly the million organization. margin commodities FX commodity mix the recoveries drove volume million. impact of throughout from quarter some headwinds offset on Finally, the about operational has approximately $XX
the our excluding quarters point last of quarter business margin bottom on foam will this versus current market. with first We on to the quarter. anticipate for slide mount business SS&M SS&M. running month, headwinds for perspective how consolidated provide the year's slide, the we the noted a excluding final at EBITDA the chemical mentioned the in do One As coming the the mostly presentation in and the DB commodity earlier in
recent As its down points as as lesser And as at just degree. an can mentioned, impact see, is you contributed well our the and accounts about majority point approximate performance our our for to of impact XX uptick which itself. The on growth basis by volume in variance most a X.X% had euro year-over-year. quarter XX investments basis other but stronger
Given on see about a of goal that target, of XXX and can the points improvement margin lot achievability you we basis performance commentary heard towards our XX. progress QX slide the read
an basis business stands this we've significantly impacting Our and XXX outlier Seat as the with point. our reduction Structures approximate Mechanisms SG&A page goal have the a No starting from points improvements out makes headwinds doubt XXX performance tougher. business and in offset of that much our basis achieving achieved points in
plans Despite As our the conference, saving margin in progress provide enhancement points we will DB noted XXX basis the not update SG&A April. on date standing still to to end team at achieving the an the target of achieve made in is towards still. is
this recent expect mitigation continue We and reduction to headcount to improvement further actions.
to investments, control equity needs to and growth. term Seat the for between be will we and the as business be from of be And of said executing basis offset our are growth. It and Through Structures picked target improvement rate continue income continues the spending down are is for XXX are growth not basis Meanwhile, With ensure our our run strong an outside net of for regard through income the and our Mechanisms. program the experience finally, performance bonus taking of balance reductions. should business our our third near going to support and of bucket, forward. correct area. in under tight roughly noted shown near-term points spending up hold. of backlog. We leading will are That in to term December look Future spending discretionary unconsolidated long just progressed headwinds exceeding planned XX% businesses monitored comfortable we SG&A and in our part likely certain efficiencies accruals, of as we accounting of such improved XX reviewed this struck XXst, or extremely performance our take taking we actions XXXX points our to margin
basis XX In starting with income fact, over is roughly equity the our margin expansion points baseline our associated point.
our XX. to cash capital and me Let now structure on shift Slide
side free the flow. $XXX for $XXX Capital of were breakdown with less million as million CapEx the a defined combined The year. with left page quarter. performance the flow outflow last $XXX the the cash negative our reflects cash seasonality. On negative quarter with year-on-year we million Adjusted cash operating expenditures normal compared operating for flow
On quarter totaled the our and we the in detailed At million XXXX at and hand December debt debt respectively page, equivalent. Gross net with cash $X,XXX right $X,XXX leverage million side position. cash $XXX XX, cash XXXX. and million December XX, the of and ended we
of the EBITDA, XXXX benefit in are only result of that prices the is four a performance minimal -- four our debt China, at the and to note was cash to out leverage QX ratio Futuris numbers. LTM As JV the purchase balance, of XX, of acquisition Important December providing quarters in the operating last level net quarters entire X.XXx. whereas debt consolidation as are out one net numbers, come against the and
of Slide end. comments due XXXX to it's some of timing I'd just the this our in kick Overall, neutral. legislation not beneficial be legislation roughly year Turning the The to tax influences in is on year a slightly fiscal the do to to going XX, the as negative rate say few US.
enjoy will benefit of rate. we However, the lower a
time changes continue left opportunities Again, we global evaluate a detrimental tax as the influences, about and us would incur called negative of interest increase was to review not XXXX, impact effective As changes we going likely most limitations BTAX. until to base to bit the our X% minimum forward the it's of fiscal are commonly Absent we of on The our options. there structure, that we deductibility manage an erosion, to anti-avoidance estimated do rate. tax think two. have kind in unmanaged. any But
provide forward the a updates is now Adient. main going but We outcome takeaway for will neutral for continue to
slide we wanted importantly performed the with LTM and approximately expect annual we as operating XXXX what at Structures business as and forward the shown performance such XX, provide and more since and about of include fiscal how the XXXX. the and our Slide activities has June Seat million XXXX some through going commercial we period central resources. and business to the in Turning purchasing Mechanisms think SS&M $XXX certain allocation The progression IT, earnings, isolate insights cost of associated
In you get provided feel the so a perform. can at is of page bottom has addition, we better how consolidated at the the to contribution SS&M our business expected unconsolidated and
As you can were of above the see just XXXX operations LTM the breakeven period. June
the If related adjust of our unconsolidated businesses, loss. to million slight earnings consolidated a you the out $XX operations were at running
the You until fiscal can see operating results. around performance XXXX Adient's QX, breakeven hover
previously in intensified. commodities to efficiencies headwinds the XXXX for the loss As launching $XX operation. to most more quarter QX the business mentioned, losses the of in headwinds recent severe became consolidated related and significant drove even million our as about The a
containment issues state as estimated resolve certain period original intensified, as new that we issue also time business. customers optimistic the arose the the apparent our headwinds actions current required became to and addition, mandatory the specialty of the In was a by such the availability of given steel
the business. Mechanisms of plants time this As operating the into are fiscal approximately million year, QX negative shows changes since QX the company XXXX. will year-over-year improve expected improvement out we the the June $XXX we run and rate a when executes Bruce last Structures earlier, expect year's That structured XXXX and the changes fundamental the LTM sequential its QX sequentially as Analyzing forecasted even containment said, period the and same move results decline rolls our for quite relative though was the all facilities. high will still These last network. essentially in variance as related year's we seven to acted Seat point at be as mentioned is plans
program approximately program commodity presently our The Additionally, as scattered as where over SS&M to are so across by the up conversion decline network, part well XXXX product from by baseline and midterm related will the relates enable better understand conducted The remaining X,XXX in due in be plant facilities $XX to is a projected bottom million, our inefficiencies XX business as plan to this plant, being mechanisms remaining reduction review to also the or us that to facilities will inflation. the XXXX. review to lines. in
As executed company results a you would lead earning will on options to appropriate is expect, ensure of to to the capital will be cost also that roadmap business. the an
Finally, guidance aircraft XXXX. point is with the will to turning wrap be of in provided our remainder is thoughts reimburses One to which the million, conference slide refer investments Slide today of their January $XX for pointed share. the includes XX, we Boeing expected XX, the which auto let to impact me about of at
Adient materials, auto in to conference our contributed both million initially noted $XX As and venture. Boeing are the approximately each fund
starting revenue. Okay, with
Aerospace $XX.X we Our expecting billion. rise XXXX between range factoring revenues fiscal for and settle consolidated to after continues regard in will to Adient are a to chemical QX our be current billion into prices, projection With expected $XX.X EBIT, performance, in to mitigation $X.XXX and our billion adjusted billion. our profit of $X.XXX plans, related expenditures
expect momentum guidance. estimate, approximately adjusted YFAI. to the would the equity more builds. year and income to traction, revised $XXX gain by expect The year actions down progresses the earlier million our now be our SS&M will full we see we earnings million, challenges $XX As revised within at mitigation EBIT Included outlook positive is in than compared driven
Important As work with minutes mentioned few improvement plans. are note to facing to impacting YFAI our challenges identify we the unconsolidated not ago, business. continue profit just YFAI a seating to
to now XX% adjusting for for that income In seating running fact, expectations is in was with the business original growth consolidated than forecasted last equity year-over-year stronger that JV unconsolidated grow year. China is QX of
billion fiscal will excluding XXX XXXX. midpoint equity basis between range is implied and expected versus EBITDA The income at $X.XX a adjusted on down Moving $X.XX billion. margin about to be points
no $XXX For and investments, of depreciation to $XXX change our increased initial million million. regard guide With to tracking our given interest, forecast. model still growth is purposes,
recovers the Based the between for recent year. and of would we to rate XX%. effective geographic Moving in between reduced we at in business expect of rate our the When composition on an to earnings of factoring taxes. and normalized the tax on back reform our tax be to XX% guidance, X% US X% anticipate and the
is line, and adjusted $XXX between bottom the the range As million income net be $XXX for million. expected to
guidance Although expenditures are capital asses that planned consistent re-calendarize current and various event. to the expectation or million of opportunity previous million, reduce $XXX the may with for team $XXX continues
million to based $XXX Futuris degree restructuring, cost around the regard now settle elevated start includes for is let's of on year. urgency and for our recovery question and XXXX, the cash execute to we integration moving with of Operator, year, a We portion the becoming Adient's and to in flow the the free for lesser to revised move the headwinds sense the this team flow, question-and-answer of plans. is to cost. which mentioned please. the on cash operating the calls With cash at mitigate not path call. cash start In of Finally, first that expect the performance with free closing, intended however,
