According to Automotive News, automotive seat supplier Adient’s net profit and comprehensive revenue declined last quarter due to difficulties in the European and American markets.
From July to September this year, Adient’s revenue fell 4% year-on-year to $3.562 billion; net profit was $79 million, a year-on-year decrease of 41%; adjusted EBITDA remained stable at $235 million.
In terms of the market, Adient’s sales in Europe and the Americas fell 8% and 6% respectively last quarter, while sales in China increased by 5%. The company’s chief financial officer Mark Oswald said that the reasons for the decline in performance in the Americas included the stagnation of large-volume projects such as Ram and Jeep Wrangler, which affected sales. However, Adient still obtained a new supply contract to provide a full set of seat systems for the Chevrolet Bolt.
At present, Adient is struggling to cope with the strong resistance brought by the decline in demand in the European market. The company’s CEO Jerome Dorlack said that due to declining exports and increased competition from Chinese companies, production will not return to pre-epidemic levels, and Adient expects demand in the European market to remain weak in the next two years. Oswald pointed out that “there is a lot of overcapacity in the region that needs to be cut.”