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Adient plc (ADNT-0.75%) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports net sales of $3,495 million, a decrease of 4.5% compared to the same period the previous year. This decrease is attributed to lower production volumes in EMEA and China, unfavorable material economics recoveries, and the impact of foreign currency fluctuations.
Cost of sales for the quarter was $3,279 million, resulting in a gross profit of $216 million, or 6.2% of sales, compared to 6.7% in the previous year. The decline in gross profit is due to lower production volumes and unfavorable material economics.
Selling, general, and administrative expenses decreased by 15% to $125 million, primarily due to lower compensation expenses and reduced administrative spending.
Restructuring and impairment costs for the quarter were $23 million, a significant increase from $11 million the previous year, primarily due to a $10 million impairment loss on the Adient Aerospace investment.
Equity income increased to $25 million from $23 million, driven by favorable performance at partially-owned affiliates and a gain on the sale of Setex.
Net financing charges were $45 million, a slight increase from $44 million in the previous year.
The income tax provision for the quarter was $22 million, with an effective tax rate of 47%, higher than the Irish statutory rate due to valuation allowances and foreign exchange remeasurements.
Net income attributable to Adient was zero, compared to $20 million in the previous year, impacted by lower production volumes and higher restructuring costs.
The filing also details Adient's restructuring plans, including workforce reductions in Asia and EMEA, aimed at reducing operating costs and increasing efficiencies.
Adient reports a decrease in working capital to $268 million from $408 million, primarily due to decreases in accounts receivable and cash equivalents.
The company repurchased 1,227,329 shares during the quarter, with $235 million remaining under the current share repurchase authorization.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Adient plc quarterly 10-Q report dated January 28, 2025. To report an error, please email earnings@qz.com.