CFO Jeff Stafeil said pretax earnings for Adient's seating segment were $344 million, down 17 percent from a year ago. The biggest hit was a loss of $91 million for operating inefficiencies.
That category includes excess scrap, and waste related to quality problems, he said. It also includes an additional $40 million in "premium freight" charges, he said. That's where a supplier has to pay extra for rush delivery of parts to an assembly plant.
In Adient's seat structure and mechanicals segment, which makes the underlying structure for seats, pretax earnings fell to a loss of $18 million, from a pretax profit of $31 million a year ago, the company said. There were charges for premium freight in that segment, too, but at least the charges were lower than the second fiscal quarter, Stafeil said.