FY 2023 Second Quarter Earnings Call
Q2 FY23 Adjusted-EBITDA
///// ////
/////
Q2FY23 adjusted EBITDA of $215M, up $56M y-o-y, was primarily driven by:
> Volume and mix, which benefited the quarter by ~$84M as production
improved
>
Improved business performance of ~$29M, driven by:
> Improved net material margin of ~$56M, aided by commercial
recoveries
>
Lower freight costs of ~$5M
>
These improvements were partially offset by ~$29M of labor and
overhead headwinds primarily associated with elevated wage
inflation and utility costs
>
Launch, ops waste and tooling negatively impacted the quarter by
~$3M in cost driven by a higher launch load (primarily in the
Americas)
>
>
>
Commodities were a net headwind of ~$39M driven primarily by the
timing of recoveries and nonrecurring favorable inventory valuation in
FY22 due to higher commodity costs, while FX weighed on the quarter by
~$5M
SG&A performance was a ~$9M headwind in the quarter, driven by the
nonrecurrence of certain compensation related austerity measures taken
in FY22, as well as timing of engineering spend in support of launches
Equity income was lower by ~$4M y-o-y, driven by lower volumes at
Adient's unconsolidated JV's (primarily in China) combined with the
impact of our restructured pricing agreement within our Keiper joint
venture
FY2023 Second Quarter Earnings Call
$ in millions
ADIENT
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|
$159
I
$29
$84
Q2FY22
Volume /
Mix
I
$(44)
$(9)
$(4)
$215
I
I
Business
Performance Commodities
FX/
SG&A
Equity
Income
Q2FY23
$8
$215
$23
$26
$(1)
$159
4.5%
5.5%
Q2FY22
Americas
EMEA
Asia
Corp
Q2FY23
Note: Corporate includes central costs that are not allocated back to the operations, currently including executive offices, communications, finance, corporate development, and legal
Adient PUBLIC
May 3, 2023
14
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