Car seat supplier Adient announced on Tuesday (August 6) its revenue for the third fiscal quarter of fiscal 2019, and its earnings before interest and taxes plummeted 37% to $ 129 million.
Adient said the company spent $ 334 million on restructuring last quarter, of which $ 250 million was used to adjust tax-related valuations. These expenses also caused Adient to have a net loss of $ 321 million. In addition, in the last quarter just ended, Adorto's adjusted net income fell by 74% to $ 36 million, while the company's operating income reached $ 4.21 billion, a year-on-year decrease of 6%.
Since its divestiture from Johnson Controls in 2016, Adient has started a restructuring model. Measures taken by the company's board of directors include hiring Doug Del Grosso as CEO in October last year. In addition, the company has reduced investment expenditures and laid off staff across the business. In his speech, Del Grosso said: "In terms of revenue in the third fiscal quarter, Adorto's restructuring plan has been on track, and revenue has been good for the second consecutive quarter. The measures introduced at the beginning of this year brought with it The subsequent benefits have already begun to bear fruit and have offset the decline in our business in the Chinese market. "
Despite the loss, Adient's adjusted earnings per share reached 38 cents, exceeding Wall Street's expected 34 cents. As of Tuesday's close, Adorto's shares had risen 32% to $ 25.45.