Great. everyone. Doug, good morning Thanks
Turning to our financial performance.
at internal Adient’s in consistent first expectations stated with what were to discussed conference As in the Deutsche remarks, Bank his Doug quarter January. in results we and line
Slide reported our side. X in the formatted to format, our to the the left typical page and result adjusted Turning results is in with adhering and right our
various decline in performance. largely a our we same otherwise in down year. On few and performance, for within view trend a commentary on decline XX% in out $XX contributing Also modest in exclude was one important focus which I’ll adjusting high sales, the period down our are million $XX EBITDA business will items last Adjusted million interiors in the million The quarter, nature decrease our adjusted Largely million, year-on-year, or was the was $X negative a We YFAI the that decline FX. income, $XXX business compared cover in results. adjusted explained underlying $XX as million with appendix. quarter items called minutes. to which skew in a These by numbers either the the despite or level, equity explained time by
and million and $XX year-over-year $X.XX, adjusted down XX% respectively. EPS net income at Finally approximately were
more a XX. $XX a Now, in the of The same currency let’s benefit quarter period Slide million, negative by results $X.XX was of breakdown We first detail increased than revenue the compared sales movement. volume starting ago. reported offset to of with more consolidated impact year our decrease billion, on from
down held Unconsolidated the ownership Seating X% region. when our of with Strong the as FX. our double revenue year-on-year conducted production recognized was strategic that business helped was interiors our unconsolidated for FX. unconsolidated outcome roughly mix to primarily the our Network important Moving in revenue, up production digits on for when and QX customer outside Yanfeng down regard in XX% in well quarter. is stake Automotive good through adjusting of remember result Adient’s in China. to outperformance SS&M diversification Interiors market. down X% A overall It JV relative China for driven Adient’s versus was adjusting through Sales to is XX% drive the for
quarter A Moving we last of basis year-over-year core legal, was not corporate decline performance driver approximately to include periods. as point provide versus communications, is The back that costs million year. labeled primary operation launch operations. down seating, related. the the of picture, the performance marketing. EBITDA costs The business corresponding between adjusted margin QX of our attributed our finance, largely show negative a in bridge $XXX executive related Slide million to and corporate versus to last are to EBITDA X.X%, EBITDA $XXX represents and office, and These The adjusted was the million XXX Doug $XXX XX, central to the allocated big mentioned bucket current of adjusted with year. segments
continued many the won’t corporate million, EBITDA addition, with I on year period XX, of Slide also impact $XX approximately few A XX the primary outside year-over-year $XX were Seating The go cost launched negative on both we’ve as to same between business to $XXX drivers a million improvement to were them quarter into XX. and reductions down in and results Similar included in Seating million headwinds, Starting offsets. adjusted significant million, China Slides in results. past In included specific in interiors callout include ago. weighed for the of the compared had challenges periods which a within a first $XX items on light the detail performance box. we’ve decreased as and related. SS&M bridges operational quarters, our partial SS&M segment
negative performance, increased SG&A the QX last did to same currency resulted the this impact of year an year in Seating, commodity year. the in And but this impact addition was $XX the period year, negative cost recognized business movements million approximately million. in not $XX last approximate repeat business headwind versus impacted last $XX million by and Seating about the Temporary benefits income, on point our year-over-year. of was segment million CapEx down QX excluding also the finally, Seating One the in $X of for equity quarter. FX In
SS&M segment performance. Turning to Slide and XX our
in slide. detailed quarter, reduced cost this the include recognized and is temporary primarily the but Similar a call-out $XX premium than better offset million or increased architecture improved The positive engineering performance. equity Unfortunately, improvement drivers lower spend between the of lower business negative seat of SG&A bridge, performance, The negative which this FX offset more year’s $X the box primary a impact than with net driven and quarter the in related QX SG&A cost not by in the year, on Seating the adjusted mix, freight. QX combined first did QX Reduced EBITDA and front partially the million For included was business million year. segment. impact and Europe, control XXXX. $XX year was repeat last last negative benefits to includes income, for result launch common improved the volume of
business the million. for roughly quarter, $XX the spent CapEx SS&M's Regarding
me now structure to Let on XX. cash our capital and Slide shift
earnings of restructuring million, $XXX outflow an million million of cash flow. defined increase was was This an last lower left lower flow, the customer by we $XXX the the the free tooling Adjusted were compares $XXX bonus operating costs, an in for an outflow $XXX quarter with of impact cash for side down year. and of page, last On less break our to cash million quarter. as CapEx, year. of payout. expenditures The negative recoveries, absence a offset Capital compared flow
can out see break we footnote, the CapEx segment. you As to in by continue
On we and leverage position. the of side cash detail page, our right-hand the
December cash we the and Gross XX. ended with and equivalents. debt of net XXXX, billion, As of XX, $X.XXX December cash as in totaled debt quarter billion $XXX million $X.X and respectively,
X.XX leverage XX, level, December result performance, of Adient's cash and times. our debt a As operating at balance, net ratio XXXX was
Doug's to replacing Speaking credit difference A, $XXX leverage stability, $XXX a morning. leverage thereafter. secured Adient's the secured the earlier million, net roughly facilities. ratio our agreement QX secure our secured ratio. billion refinance million The outcome. and at of The XXXX, million leverage One billion steps income the and and end, were XX, point our just $X.X X.X facility, of an is the total based flexibility, includes The ratio financial net note $XXX netting and At dividends and the for Details secured X.X in a the Term times and resulting last EIB last million, team our interests. options months net eliminating roughly income previous the of was X.XX agreement adjusted calculation European debt eliminating equity position net X.X calculation as amendment million $XXX factory adding The our as billion. bank provide debt cash, up post-quarter times December times times. net comments, our earlier amendment. over between on net $XXX to of loan, the the X.X credit various $X.XXX amended at we The leverage following and XXXX close, totaled LTM Loan maximum covenant, quarter EBITDA EBITDA financial and the covenant, bank-adjusted totaled from bank-adjusted facility. includes company's the per caps of times $X.X follows: totaled down senior of subtracting cash which primary totaled and to XX fiscal strengthens filed amendment pivots QX of on the received the cash minority and approximately credit in explore on this amendment X-K liquidity should This company's leverage of
let to conclude to settle for fiscal XXXX. headwind, last and expect Moving million expected revenue on a in of production range. movements current me on XX, be the what decline few the primary Slide in we forecasted expect is with expected approximately which to foreign to thoughts compared plans vehicle to Based is year. $XX.X billion The to FX, $XX.X driver $XXX billion in year-over-year exchange,
to a water in XXXX half. and the is to half China in adjusted reduction results compared regards is expected in our expected of impact improvement degree. expected the adjusted full-year to business Despite in Europe complete to to year, With lesser the second a in first revenue, lower be full-year conditions is market mark, half also low of Softer XXXX. back but EBITDA, improving with much seat expected be fiscal EBITDA the to
sequential SS&M adjusted to decline to to up basis, Doug the being just to the lines executed, eliminate earnings look freights improvement gives quarter similar half's Seating QX show compared our early confidence will commercial As manual shaping the us expected our to on our performance, such premium first QX, To very the improve the of and benefit modestly, completed. half. in our to is read has is help quarter business recliner mentioned, On EBITDA dimension while at operational a second actions and in ability as expected quarter-over-quarter. Rockenhausen,
clarity actions, to gain China operational on month, the the updates just the a and of Detroit the improvement as tariff and the pace commercial headwinds, name of provided as be few. volumes, the in last such key conferences investor will discussed on we As pace at year additional through variables,
is it expected million finally, a million $XX the adjustments, although an headwinds, are to the year; million In or will quarter last aerospace benefits factors, global $XX operating year, spending be performance; SG&A Adient in including repeating be versus elimination other and, our year-over-year absorbed earnings costs weaker in be last dollar, versus impacted year. expected spend Adient's the per operational to $XX variety U.S. addition currencies versus call approximate not following: to of the expected headwind; be by becoming of which XXXX, to are increased temporary the for about lower
XXXX, reminder, we the As funded will in share. the while other million year, yet, will a million, was $XX we net million. spend expense, Boeing of the had and so about continue formed only JV $XX not same, $XX for Boeing to their reimburse roughly This
still as will are consolidating the However, we reported entire we in business, $XX results. million have this
Moving on, to to tax effective range. be low Adient's expected rate the high-teens in XX% is
losses modeling XX%. were rate previously due call in is year allowances to it higher valuation versus For The jurisdictions purposes, of benefited. effective where establishment certain last the primarily the
you does fourth note, by the If quarter cash recall, not impact of year's the rate results valuation significantly impacted our the allowances. effective establishment last taxes. higher tax were to Important
one total in significantly to million, on cash I'll in expect to last modeling, additional expenditures year. For $XXX impairments for compared on deprecation than and On cash XX% out Because note, impact year. million of taxes of we were taxes, XXXX your our our expect point million as fiscal QX to the decline mention to our withholding to the XXXX, on asset we item last will for year we about have year's asset it side be the the One related JVs called lower, $XXX an more last year-over-year. from for a $XXX expect range tax taxes dividends write-downs, And JVs. the cash consolidated to capital payments relates depreciation. with
question, smaller the let's current by expenditures the Operator, on we of opportunity can current Although years, plans. the to driven reduce move portion capital in that, to expenditures out please? the year SS&M see have supporting we year launch are business, our a With first question-and-answer call.
