Times are tough for many automotive suppliers across the globe courtesy of the ongoing COVID-19 pandemic, which has led to a number of challenges including a semiconductor chip shortage that’s been shutting down production lines and causing headaches for buyers in terms of both available inventory and late availability options. Regardless, some companies are managing to do just fine amid all this chaos, including Ford seat maker Adient.
Adient just announced its Q1 2021 financial results, which revealed that it posted a net income of $150 million versus a net loss of $167 in Q1 of 2020, which included a one-time $216 million charge for impaired assets. The profit came despite a 2.2 percent fall in revenue, which came in at $3.8 million, while margins improved by 2.5 percent in North America and 4 percent in Europe.
Adjusted earnings in North America came in at $132 million, a 40 percent increase, while revenue dropped to $1.7 billion, a 6.5 percent decrease. In Europe, those earnings doubled to $114 million with a revenue gain of 2.5 percent to $1.6 billion. These results mark the first time Adient has posted a profit since the onset of the COVID-19 pandemic.
To accomplish this, CEO Doug Del Grosso has cut jobs, furloughed employees, and shed unprofitable business ventures. “Adient’s unerring focus on our improvement plan resulted in a strong start to ’21, giving us a solid path to achieving our ’21 commitments and further positioning the company for sustained, long-term success,” Del Grosso said in a statement.
The Ford seat maker provides parts for a host of Blue Oval products, including the new 2021 Ford F-150 and 2021 Ford Mustang Mach-E, as well as seats for other automakers including Volkswagen and Fiat Chrysler, to name a few.