FY 2023 Second Quarter Earnings Call
Bor: A case study in effective, cost-efficient restructuring
ADIENT
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Adient continues to execute "efficient"
restructuring across its operations. Actions
are underpinned by the following mindset:
Cost of restructuring is not "free"; Adient
needs to be good stewards of capital
Extreme focus on customer / program
profitability
Opportunities to improve balance in /
balance out in future years
January 2020
> As replacement business for the successor model of existing business
came to sourcing, the customer's targets resulted in a projected
negative FCF.
>
>
This was not an acceptable outcome for Adient, leading to a decision
to exit the JIT business, including giving back an awarded program. In
addition, the team worked hard to reprice the business that was
winding down.
Adient explored innovative options to backfill the JIT business to
improve the cash generation capabilities of the facility.
Projected cash
burn: $(20)M
annually
Headcount: 850
FY2023 Second Quarter Earnings Call
December 2022
>
>
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The current model year business was successfully repriced as the
business builds out.
New business was quoted with alternative customers and won (wins
are across multiple customers and include BEV and ICE platforms).
Significant capex and restructuring spend was avoided and positive
cash flow is projected following the launch phase of new business
through the end of the decade.
Positive cash flow
forecast through
2030
Headcount: 500
Adient PUBLIC
May 3, 2023
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