Adient Quarterly Earnings: Net Profit Swings to $12 Million

auto seat suppliers Adient Sales and earnings improved in the first quarter, but management said the production disruption had lasted longer than expected, hurting profitability.

The company achieved a net profit of $12 million from a loss of $54 million in the same quarter last year.

Adient said financial results released on Tuesday showed adjusted EBITDA of $212 million for the quarter, up 45 percent year-over-year to record $3.7 billion in revenue.

Profitability improved to 5% from 3.8% in the previous quarter as a recovery in commerce and lower commodity costs continued to weigh on profitability.

The Irish-based, Plymouth, Michigan-based company expects to reach full-year sales of $15 billion in 2023, and said it reaffirms its previous guidance, but shares earnings forecasts was reduced by more than 20% to $70 million.

“We are still far from ideal,” CFO Jerome Dorlack said on a conference call with investors. It is not operating at what we would call efficient.”

Adient (NYSE: ADNT) The stock fell 3% to $44.33 per share on Tuesday morning, but recovered by noon.

“The overall business environment remains volatile,” Dorlack said, but expects “significant improvement” in the second half of 2023. Fast as expected.