Adient, a global provider of automotive seating, has announced preliminary financial results for full year fiscal 2018. On a preliminary basis, based on the information currently available, the company expects:
- Full year 2018 revenue of approximately $17.4 billion, in line with prior guidance of approximately $17.5 billion
- Full year 2018 Adjusted-EBITDA of approximately $1.2 billion vs. prior guidance of approximately $1.25 billion
- Full year 2018 free cash flow (defined as operating cash flow less capital expenditures and excluding the impact of the accounts receivable financing facility initiated in Q3) of approximately $0, in-line with prior guidance of between $0 and $(100)M
“While sales and free cash flow were delivered in-line with our commitments, challenges within our Seat Structures and Mechanisms (SS&M) segment, and to a lesser extent, within our Interiors segment (YFAI), were the primary factors behind our earnings shortfall,” said Fritz Henderson, chairman of the company’s board of directors. “The management team, led by Doug DelGrosso, the company’s newly appointed president and CEO, is working with urgency to execute our transformation plan focused on better operational execution to drive meaningful improvements in profitability and free cash flow.”
In addition, the company says it expects its fourth quarter fiscal 2018 GAAP results to be impacted by certain material one-time, non-cash charges associated with asset impairments (within the SS&M and Interiors segments) and the recording of valuation allowances against certain deferred tax assets. Further details of Adient’s fourth quarter and full year fiscal 2018 results will be provided during the company’s fourth quarter 2018 earnings call on Nov. 9.