Automotive seating supplier Adient said earnings swung to a loss and revenue fell 11 percent for its fiscal second quarter as a variety of industry headwinds hurt results.
The company posted an $81 million net loss, compared with a $69 million gain during the same period last year.
Adient said adjusted earnings declined 48 percent to $159 million from the year-earlier period. Consolidated sales fell more than 8 percent from a year earlier to $3.5 billion.
In a Thursday presentation to investors, Adient attributed the decline to “numerous external factors including supply chain disruptions (and resulting operating inefficiencies) and increased freight costs.”
CEO Doug Del Grosso said Adient was implementing strategies to help remedy the losses.
“All together, these headwinds are forecasted to place approximately $475 million of downward pressure on Adient’s results in fiscal 2022,” Del Grosso said. “Through self-help initiatives and improvements in overall external conditions, we expect a large majority of these pressures to reverse over time.”
One initiative Adient is implementing is its Back to Basics strategy, which calls for focusing on improving “launch execution, cost/operational improvement, and customer profitability management.”
Most major U.S. suppliers are reporting lower results for the quarter that ended March 31.
Adient’s U.S. competitor Lear Corp. saw its adjusted net income decrease by half and revenue fall by 3 percent in its first-quarter report, which was released Tuesday. The company said the decline was due to decreased production and other industrywide challenges.
Adient also said it anticipated negative external influences, such as increased supplier costs and prolonged supply chain disruptions, to intensify because of “the Ukraine conflict and widespread COVID lockdowns in China.”
Adient lowered its sales outlook to $14.2 billion for the current fiscal year, down from an initial forecast of $14.8 billion.
Its shares fell 7.4 percent to $33.94 in afternoon trading.
Adient ranks No. 14 on Automotive News‘ list of the top 100 global suppliers, with $12.67 billion in worldwide parts sales to automakers in 2020.