Good Doug. Thanks everyone. morning,
Starting The Turning that charges The before results by continued jumping the financial non-cash to remarks results. stated persist and that his into I’d Adient’s impacted that X as are by performance, point Adient’s impairments. a were Adient’s there financials, the ongoing performance GAAP expected Doug impairments in onetime quarter were QX were significantly driven Slide drivers to some into to on significantly of were like our headwinds. degree future. biggest out variety asset fourth foreseeable to issues impacted
flows fair cash down to XXXX Note the values assets that of XXth, in For downs flows were loss that are The values SS&M, million in were this charge $XXX September analysis by determined assesses that impairment. on in long write asset impairment lived program for as assets. cash lived long assets using QX was and write current with reflected analysis currently The flow. associated capital the an in cash base. resulted Note net discounted capital to working our their production. use impact impact don’t this these
For assessed YFAI, performance our ongoing investments given for in Adient existed whether impairment our issues, JV.
a result YFAI equity the for in recorded business. after using an analysis of loss the million, impairment net recorded As $XXX flows Adient determined charge is cash Fair value tax been income. $XXX of was million. The impact has discounted which
deferred valuation earnings, on Regarding thus certain future these profitability, tax tax geographic benefit be would of balances. we loss against that due tax our company the the unlikely our year in that $XXX throughout in mentioned million These allowances resulting allowances in been regions have had we’ve certain the realize deferred recall, was assets the forecasted impacted to the of and calls of established. the earnings level certain quarter. assets of earnings recording increased determined as net to by it pressure valuation lower history Based to you on utilize our
noted, not it As tax an in will payments. but result in this impact tax rate our effective our will increase cash forward
the related reform. a to provisional for was asset impairments, revision In addition U.S. made these to tax estimate performance
on SAB pension amortization now results adjustments, Based accounting approximately XXX other $X.X impairments, including assumptions, estimating asset restructuring Adient’s items, mark-to-market, If billion. updated million. made also Other GAAP related you $XXX In becoming results. this we and QX, impacted the to adjustment impacted by $XXX GAAP total, were and purchase in we a combining estimate. Adient’s, recall, the charges, be back are million
with to this Now, our adjusted turn our adhering results the on our typical left to X. format on is Slide results formatted let’s right In and page side. the reported
equity for EBITDA approximate declined year-on-year, on sales, Despite a We an $XXX decline explained which which will explained adjusted exclude million YFAI minutes. performance, X% I’ll period our focus more quarter in adjusted the previous slide. just same the last a Meanwhile, detail our income business. $XX few by commentary in to million a the the and within the results, by in year, primarily decrease increase in million $XXX million items $XX adjusted discussed for cover the quarter was in compared down was business than Interiors
Finally net results and were EPS per shown and and are year XX% $X.XX on adjusted income $XXX Full approximately respectively. million down Slide year-on-year share XX.
$X we increased from the sales year billion business prevented mentioned good unconsolidated impact of as the over factor on down and net was over a SS&M challenges a launches year, performing as issues income well. respectively. related $XX per sales Equity Interiors. had a operational in approximately are albeit million profit. year-over-year. down approximately was performance considering unsatisfactory $X.X bit million was converting general, were down year up adjusted facing seen us the XX% the about outcome As came into throughout $XX.X $X.XX not EBITDA share XX% Seating million throughout The to And finally, Adjusted our the decrease are financial year-over-year in difficult line, in year-over-year, $XXX income, businesses the and the EPS billion. were a performance, year X% In at our and significant bottom and we’ve as revenue
compared our in in of same the Futuris primarily of of detail, volume, revenue to euro as well from impact fourth Slide $X.X in more peso. movements down acquisition million with the period primary the negative movements. The the with ago. starting an combined XX. America, break than over the drivers FX North results let’s increased related real offset Now as a and Benefits increase quarter reported more consolidated currency are $XXX Brazilian Argentine to billion, year We sales just on
year-over-year. revenue, region. FX, sales Adient’s our was production strong Seating up in network through regards in revenue, good as with strategic down about JV to and X%, year-over-year. outcome growth low margin and driven production FX the Interiors, revenue the year. with Volvo, for versus on Unconsolidated Sales a adjusting X% with for roughly to continued mix market. was by down recognized quarter. outperformance growth helped XX% Interior, relatively Yanfeng driven the unconsolidated SS&M overall BMW, Strong remains Moving Adjusting relative last for flat through our ownership SAIC, in Adient’s grew unconsolidated was China, Automotive drive were very in sales, X% X% When versus primarily about stake and cockpit
approximately the last XX, decline. EBITDA in headwinds combined with downward to across pressures represent of drove performance SS&M, and EBITDA executive operations. quarter corporate Big communications, million $XXX from back QX Slide labeled versus our adjusted adjusted between costs the periods. to and bucket macro These Weaknesses The moving margin million SS&M the the of commodity our Now $XXX costs was attributed primarily represents and to the that $XXX provided a costs points and Seating not performance within office, finance, provide Interiors core more to FX, bridge to adjusted related negative picture, continued central our quarter, last legal, marketing. was show year-on-year business were last EBITDA segments $XXX Compared than Corporate basis guidance the allocated include the year. X.X%, current and with and The YFAI, with million down corresponding strong, expected, majority versus are up year. Interiors, our for of we the was compared the XX, $X our $XXX reason associated primary and in Futuris include: we’ve the with Slides for the Slide million and equity for few contributed China as operational and XX the SS&M outside to period through positive Adient’s million. XX% periods a combined period as volumes First, included approximately down both adjusted unconsolidated shortfall. $XX SS&M on on Important remains on with increased million weighed results benefits EBITDA to quarters, same challenges last quarter acquisition about XX. million, fourth the significant ago. stake our to past business year. same compared performance Seating Seating impact to bridges Starting to on note the the $XXX drivers a Similar decreased detailed year lower had The between segments the recognized both Seating results. income ownership year-over-year of volume
the business $XX However, headwinds business these incurred million were improvements Most by were significantly, of factors. over offset more a in variety performance the during which launch-related. quarter, many of just than
these productivity. let positive. say to by said, would offset can the would components components or and company be a industry. me components which that slightly for be to $XX business million price reduction unfortunately approximately suppliers negative distinct net reductions generally Before zero our short, is $XX our expect That these of explaining improved to we million $XX expect The our from that to we price our would customers, common the performance, of cost In netted operating reductions customers to few headwind The million performance. gave categories. its bucketed into for performance be
Although call $XX result million material performance in margin, benefit operating a have a thus, net it expected of $XX positive. at normal the would times, we million net net portion least offset $XX we efficiencies negative million material to was that from
with performance. the of we efficiencies. XXXX freight, slide performance, within of half complex launch net improvements back ended significant as scrap However, highlight a and than waste, quarter-over-quarter. that our instead that One offset In is the launch operating I’d heavy These and increased the providing have the such more headwinds load related hit. normally our inefficiencies point additional $XX experienced productivity network. associated has negative but operations would items million the declines are first Adient’s and -- operational approximated up seating half quarterly the bottom at Note expect, results to like total
issues addressed, and time, take are While Doug into it’s will XXXX. reasonable they that carry forward to indicated these being these will forecast
million addition an versus chemical SG&A insurance approximate $XX currency In by increased approximately primarily the to business with quarter. and year. service million in accruals and performance more Seating, prices, negative point same combined were on in related to efficiencies our QX last the from changes just costs comp’s offset recoveries in commodity a $XX seating described, for the the CapEx fee period than workers movements YFAI. One resulted year headwinds last business in reduction was this
segment XX to Slide Turning and our SS&M performance.
For on $XX negative the was XXXX. Adient’s heavy of quarter $XX was adjusted primarily $XX the between QX EBITDA this inefficiencies or include headwinds. the burdened approximately year’s last and we essentially of quarter, segment Pricing SS&M million, business the bridge. operational which performance, by complex negative with primary QX material the impact The lower driven million fourth than what each as offset launch to year drivers shown similar Seating launch other, million load, discussed for and performance and
in the about achieving costs North in quarter. high commodity In about business required of such However, commodities with as ton the the factors from totaled FX associated make steel pullback weighed and America efficiency in of hopeful operations the the level reaching July, also launches FX we’re total, metric hold. per Macro million. After equation and the to a prices continues. burden prevented recent $XX $XXX in
another though, on impact sequential the third motors specifically steel of activities, to segment’s of China of the the a higher factor increased quarter prices out tariffs launch improvements. electric consecutive in was inability to deliver addition In and coming
downward future $XX to equity primarily $XX by forward, of headwinds annualized on the million tariffs related offsetting unfavorable impact pressure on quarter. insurance worker’s the of SG&A to costs mention approximately million. comp Partially with landscape, also income about were of these $XX today’s is I’ll Going and accruals million. the driven approximately of changes increased estimated million and SS&M be associated growth earnings during lower placed $X based
charge for million. step backwards reflected the and taken in the the of spent a is Clearly impairment disappointing, absolute the Regarding performance level SS&M’s took in performance and quarter. the quarter, versus $XX CapEx business fact roughly our that QX the is
cash me capital and Let on XX. Slide our now to structure shift focus
left segment. free last flow. the million the as down of we for On quarter page, cash of earnings to last quarter $XXX was defined working were side compared impact the expenditures our see $XXX CapEx, and trade in the $XXX less out million year. continued by footnotes, was million break cash performance. more $XXX lower The as million compared the flow, flow we operating negative to Adjusted cash you by positive than capital offset with year, break Capital can for CapEx
below associated When was year, expectations our capital cash QX flow the free provided was financing with to earnings QX, or benefits million, approximately adjusting in $XXX the expenditures line year $XXX initiated For in XXXX the $XX million, totaled Free accounts the the the previous you cash million for million. on flow full for in call. guidance. $X receivable facility with
page year side hand At September $XX million and balance that right ended of of our we equivalents. we included cash the On position. note cash cash I’ll the the XXXX roughly quarter detail XXth, the and and company September leverage $X.XXX Doug in Gross from mentioned in billion with the another million cash million and on and were at The billion generated after $XX assets it XXth, debt certain the call net $X.XX remaining XXXX. collected closed. proceeds the totaled proceeds, debt respectively quarter earlier of sale $XXX call.
balance result XXXX XXth, operating and of our cash performance, September times. level, Adient’s leverage was at net As X.XX ratio a debt
efforts. paydown taking said, suspend action dividend XXXX just to flexibility company beginning recognizes board’s capital our actions the importance that. fiscal level, is of financial Our third increase leverage our to current initiating cash our to quarterly and XXXX our is we’re pretty quarter our structure. That The will result. reducing equal steps with QX debt The much to and de-risk do debt
financial navigate a matters, as credit X.X turning as agreement. effort company view amendment let increased execute the sheet. times. balance on Slide XX, addition maximum bank including our amendment The from flexibility to few and net total was times In additional covenant and to the plan. successful This we the the ratio X.X focused of to leverage to turnaround We comment part our me a adjusted other gives de-risk
what our de-risking September reminder, different using remains XXth. on The to X over to I structure in focused a are spend reported leverage totaled bank a will subject discuss. opportunities explained capital continue our than I’d XXXX. company just on like Just credit times formula leverage. at a agreement That Taxes and look leverage another moment for calculates just to
our significantly profits, First, tax geographic year-over-year by distribution and rate the rate. was effective year for the impacted U.S. tax earnings, reduced of lower
Going forward, it’s likely discussed valuation allowances our taxes the effective tax rate the will not increase Adient’s materially to allowance, valuation forward. going note, will year-over-year, Important impact primarily driven as by cash earlier.
Doug Slide into to continue days coming conclude on Moving in the process. execute XX, months. He’s what a me expect on with, thoughts XX plan. let his day hundred to to approximately To with begin the few will
As plants XXXX team our severe will on prioritized SS&M improve have both the our he be the weeks. future working plan the forward on hard his been fiscal be the operating most Resources solidifies to The in plan underperforming path the and businesses. and coming Seating will within launches. performance refined
should the models XXXX. continue results specific and review our First, both Seating include; macro operations. mentioned when As to that XXXX business plan, faced updating all Drivers your we challenges company the finalizing XXXX to production improvements challenges clear within considered the in under elements of in impact our be will although cash regional identify and assumptions, and the are profit facets including generation opportunities, earlier, still further its are of
a basis, intensified As vis-à-vis will impact XXXX, and our of later XXXX on first year-over-year thus these in XXXX. noted half earlier,
are XXXX. issues Next, within improve business continue expected are the albeit they business, to performance to that experienced the over in expected SS&M headwinds
SG&A the approximate continued and impacted company-specific called full-year during business. economics, headwinds, tariffs, Interiors those challenges in downward increased of cost, commodity as to million such pressure the $XX place as labor XXXX. of reversal of temporary added influences, the out impact Next, business on will and cost, the macro the freight And, addition our operational savings, several
actions. operating to As especially these opportunities you’d improvement to commercial help negative expect, influences, we’ll work mitigate identify
let’s Operator, our XXXX in to share Doug We answer expect first to have expectations the we has With question with review. after the please? bottoms move the call. had you fiscal question, complete January, of and to that, up portion his time can
