Adient plc (NYSE:ADNT) Q4 2023 Earnings Call Transcript

Operator: And our last question comes from James Picariello with BNP Paribas. You may ask your question.

James Picariello: Hi. Good morning, everyone and congrats, Doug on the news. Just two housekeeping ones, regarding the equity income outlook, the $20 million year-over-year downside, can you just quantify what portion of that attributes to the Kiper [ph] JV rate? My apologies if I missed that and does that benefit the America segment?

Doug Del Grosso: Yeah, we didn’t provide the breakdown between how much of that’s the Kiper JV versus how much of it is other JVs within the region. At this time, I don’t think we will provide the breakdown of it. I’d say, yeah, we just — as we get further on in the year and we see how the equity income starts to flow in, we’ll start to provide the breakdown, but it will benefit the Americas is how to think of it, yes.

James Picariello: Okay. Understood. And then on the footprint actions, is in that one slide with all the detail packed around the guide. Is the net EBITDA impact $20 million positive or negative to think of it as ’24 bridge?

Doug Del Grosso: Yeah, so it’s a negative $20 million and the largest one on that $20 million, the vast majority of it was in 2023, we had the opportunity to really go through and deconsolidate one of our operations in China. It was a unique opportunity. Looking forward, we had the ability to harvest some cash out of it. It had a de minimis return going forward. So we took advantage of that. It has obviously, a net year-over-year impact on EBITDA for us. But from a cash standpoint, it was the right thing to do. But it does present a year-over-year headwind for us from an EBITDA — consolidated EBITDA standpoint.

James Picariello: Is there an associated revenue impact as well, since you’re deconsolidating it or no?

Doug Del Grosso: Yes, there’s an associated revenue impact, but it’s more than made up by the increasing sales that we see from our other operations in China.

Mark Oswald: Great. And surely it looks like we’re at the bottom of the hour. So with that, we’ll move to conclude the call. If there’s anybody that has additional questions, please feel free to reach out throughout the day. Thank you.

Operator: Thank you. This does conclude today’s call. We thank you for your participation. At this time, you may disconnect your lines.