Adient - Q3 preview - Comments

All,

Sales: $ 4.2bn, Adj. EBITDA $ 205m

At first sight Adient slightly beat our expectations. Adj. EBITDA however includes an unwind of $20m of restructuring reserve and is therefore actually just slightly below our estimate. Still, the overall direction is in line with our expectations, safe for some regional discrepancies:

Americas: Strong beat - Sales strong and EBITDA strong - Improved Commodity Prices and volumes.

Europe: Slightly stronger than forecast

China: Disappointing - Lower volume and Equity income.

Other:

Restructuring impairments have fallen from $50m in Q318 to $15m.

The company has taken a Deferred Tax Provision of $264m during the course of the quarter.

Wolfgang