Adient reports strong first quarter 2021 financial results

Rhea-AI Summary

Adient (NYSE: ADNT) reported robust Q1 2021 results with a GAAP net income of $150M and an EPS of $1.58. Adjusted EPS rose to $1.71, while Adjusted EBITDA reached $378M, up $81M year-over-year, reflecting a margin improvement of 9.8%, up 228 bps. The company maintained strong liquidity with $1.82B in cash and cash equivalents and total liquidity of approximately $2.8B as of December 31, 2020. Adient also published its 2020 Sustainability Report, showcasing its commitment to environmental responsibility.

Positive

• Q1 GAAP net income of $150M and EPS of $1.58.
• Adjusted EPS of $1.71, reflecting strong performance.
• Adjusted EBITDA increased to $378M, up $81M year-over-year.
• Adjusted EBITDA margin improved to 9.8%, a rise of 228 bps.
• Cash and cash equivalents stood at $1.82B as of December 31, 2020.

Negative

• None.

PLYMOUTH, Mich., Feb. 5, 2021 /PRNewswire/ -- Adient (NYSE: ADNT), a global leader in automotive seating, today announced first quarter 2021 financial results.

• Q1 GAAP net income and EPS diluted of $150M and $1.58 respectively; Q1 Adj.-EPS diluted of $1.71
• Q1 Adj.-EBITDA of $378M, up $81M y-o-y; Q1 Adj. EBITDA margin of 9.8%, up 228 bps y-o-y
• Cash and cash equivalents of $1,820M at Dec. 31, 2020; total liquidity at Dec. 31, 2020, was ~$2.8B
• Adient issued its 2020 Sustainability Report — highlighting the company's commitment to operating its business in an environmentally responsible manner

For complete details and to see reconciliations of non-GAAP measures to their most directly comparable GAAP measures, visit the events section of the Adient investor website at www.investors.adient.com/events-and-presentations/events to download the full press release and earnings presentation.

Investor analyst conference call:
Adient's president and chief executive officer, Douglas Del Grosso, and executive vice president and chief financial officer, Jeff Stafeil, will host a conference call today at 8:30 a.m. Eastern to discuss the results. To participate by telephone, please dial 800-779-1454 (U.S.) or 312-470-7220 (international) 15 minutes prior to the start time of the call and ask to be connected to the Adient conference call. The conference passcode is ADIENT.

About Adient:
Adient (NYSE: ADNT) is a global leader in automotive seating.  With approximately 77,000 employees in 32 countries, Adient operates 202 manufacturing/assembly plants worldwide. We produce and deliver automotive seating for all major OEMs. From complete seating systems to individual components, our expertise spans every step of the automotive seat-making process. Our integrated, in-house skills allow us to take our products from research and design to engineering and manufacturing — and into more than 19 million vehicles every year. For more information on Adient, please visit www.adient.com.

Cautionary Statement Regarding Forward-Looking Statements:
Adient has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding Adient's future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, market position, outlook, targets, guidance or goals are forward-looking statements. Words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "should," "forecast," "project" or "plan" or terms of similar meaning are also generally intended to identify forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Adient's control, that could cause Adient's actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: the continued financial and operational impacts of and uncertainties relating to the COVID-19 pandemic on Adient and its customers, suppliers, joint venture partners and other parties, the ability of Adient to execute its turnaround plan, the ability of Adient to effectively launch new business at forecast and profitable levels, the ability of Adient to meet debt service requirements, the terms of financing, the impact of tax reform legislation through the Tax Cuts and Jobs Act and/ or under a new U.S. presidential administration, uncertainties in U.S. administrative policy regarding trade agreements, tariffs and other international trade relations including as may be impacted by the change in U.S. presidential administration, general economic and business conditions, the strength of the U.S. or other economies, automotive vehicle production levels, mix and schedules, changes in consumer demand, work stoppages and similar events, global climate change and related emphasis on ESG matters by various stakeholders, energy and commodity prices, the availability of raw materials and component products, currency exchange rates and cancellation of or changes to commercial arrangements, and the ability of Adient to identify, recruit and retain key leadership. A detailed discussion of risks related to Adient's business is included in the section entitled "Risk Factors" in Adient's Annual Report on Form  10-K for  the fiscal year ended September 30, 2020 filed with the SEC on November 30, 2020, and in subsequent reports filed with or furnished to the SEC, available  at www.sec.gov. Potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are made only  as of the date of this document, unless otherwise specified, and, except as required by law, Adient assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this document.

In addition, this document includes certain projections provided by Adient with respect to the anticipated future performance of Adient's businesses. Such projections reflect various assumptions of Adient's management concerning the future performance  of Adient's businesses, which may or may not prove to be correct. The actual results may vary from  the anticipated results      and such variations may be material. Adient does not undertake any obligation to update the projections to reflect events or circumstances or changes in expectations after the date of this document or to reflect the occurrence of subsequent events. No representations or warranties are made as to the accuracy or reasonableness of such assumptions or the projections based thereon.

ADNT-FN

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SOURCE Adient

FAQ

What were Adient's Q1 2021 financial results?

Adient reported a Q1 2021 GAAP net income of $150M and an EPS of $1.58, with an adjusted EPS of $1.71.

How much did Adient's Adjusted EBITDA increase in Q1 2021?

Adient's Adjusted EBITDA increased to $378M, which is up $81M year-over-year.

What is Adient's current liquidity position?

As of December 31, 2020, Adient had cash and cash equivalents of $1.82B and total liquidity of approximately $2.8B.

What is the significance of Adient's 2020 Sustainability Report?

The report highlights Adient's commitment to operating its business in an environmentally responsible manner.