Adient loses $216 million
Adient, the seating supplier, has reported a net loss of $216 million for the first quarter of 2018. These numbers are rather grim and "unacceptable" if you compare them to the $99 million profit of the previous year.
Adient, with headquarters in Plymouth, Michigan, is one of the top 100 global suppliers of automotive parts, ranking in No. 11. For the 2016 fiscal year, they had supplied automakers with the equivalent of $16.84 billion.
Shares in Adient dropped to $66.45, an 8.3 percent drop by the end of January 2018. According to CEO Bruce McDonald, "Clearly, when we look at these numbers, they're disappointing and, quite frankly, unacceptable," McDonald said in January during a conference call with media and investors.
Among the setbacks caused this loss, there's the availability of materials such as steel and wool, commodity prices, and delivery costs. The company is planning to restructure itself as a standalone operation in the coming months.
Despite experts’ warnings about a possible setback for the company caused by the metals, nobody expected such an impact.
"While there is a path to recovery, the recovery will take time, and the business will be unprofitable for quite some time," analysts from Barclay wrote in a report.
The projections for the rest of the year had to be adjusted to be able to recover from the loss. The projected income was lowered from between $940 million and $980 million to between $700 million and $740 million.