Adient ADNT delivered adjusted earnings per share (EPS) of 31 cents for the first quarter of fiscal 2024. Earnings fell from 34 cents recorded in the year-ago period and also missed the Zacks Consensus Estimate of 47 cents. In the reported quarter, the company generated net sales of $3.66 billion, which decreased 1% year over year and missed the Zacks Consensus Estimate of $3.72 billion.

Segmental Performance

Adient currently operates through three reportable segments — the Americas, including North America and South America; Europe, which includes the Middle East and Africa (EMEA); and Asia Pacific/China (Asia).

In the reported quarter, the Americas segment recorded revenues of $1.65 billion, which declined 4% from the year-ago period but beat the Zacks Consensus Estimate of $1.64 billion. The segment recorded an adjusted EBITDA of $80 million, up from $69 million recorded in the prior-year period and topped the Zacks Consensus Estimate of $57 million, driven by sales outperformance.

In the fiscal first quarter, the EMEA segment registered revenues of $1.27 billion, which increased 7.6% year over year and exceeded the Zacks Consensus Estimate of $1.25 billion. The segment recorded EBITDA of $45 million in the quarter under review, which was higher than $28 million generated in the year-ago period. It also outpaced the Zacks Consensus Estimate of $40.99 million on the back of improved business performance, forex benefits and increased net commodities.

In the quarter, revenues in the Asia segment came in at $770 million, down 6.2% year over year and missed the Zacks Consensus Estimate of $844. The segment’s adjusted EBITDA fell 17.4% year over year to $114 million due to the end of production of a few programs and the launch of others, and the timing of recoveries.

Financial Position

Adient had cash and cash equivalents of $990 million as of Dec 31, 2023 compared with $1.11 billion as of Sep 30, 2023.

Long-term debt amounted to $2,403 million in the reported quarter, up from $2,401 million as of Sep 30, 2023.

Capital expenditures totaled $55 million in the fiscal first quarter of 2024 compared with $61 million in the prior-year quarter.

During the quarter under review, Adient repurchased nearly three million shares for $100 million.

Revised Guidance 2024

Adient envisions fiscal 2024 revenues in the range of $15.40-$15.50 billion, down from the previous guidance of $15.60-$15.70 billion. Adjusted EBITDA is estimated to be $985 million, down from the prior guidance of $1.01 billion. Equity income and capex are projected between $70 million and $310 million, respectively, the same as the previous guidance. Free cash flow is estimated to be $300 million. Interest expenses and cash tax are estimated between $185 million and $105 million, respectively.