Automotive seating supplier Adient posted a fiscal fourth-quarter net loss of $36 million compared with a $4 million net loss in the same quarter of 2019.
Despite a deeper net loss from the year before, the results still marked a significant improvement from Adient's third-quarter net loss of $325 million.
The company on Monday said it expects increased volume and industry growth to create positive momentum going into fiscal year 2021.
Revenue during the most recent quarter fell 8 percent to $3.59 million while adjusted net income nearly doubled to $109 million compared with the same quarter last year.
In the fourth quarter, Adient also repaid nearly $100 million in debt.
For its 2020 fiscal year, Adient reported a net loss of $547 million compared with a net loss of $491 million in 2019. Adjusted earnings before interest, taxes and other adjustments fell 14 percent to $673 million.
"We expect several factors will influence Adient's performance in 2021, many on the positive side including benefits driven by continued execution of the company's turnaround plan," Adient CFO Jeffrey Stafeil said in a call with investors and the media Monday morning. "Specifically related to operational improvements, cost containment and customer profitability management."
Adient expects its turnaround plan and the higher volumes in vehicle production to drive earnings and cash flow in the 2021 fiscal year. Looking ahead, the company said it expects revenue of between $14.6 billion and $15.0 billion. The company said free cash flow should range between $0 and $100 million.
The company said it has navigated through the COVID-19 pandemic by improving launch management, operational improvement, cost reductions and commercial discipline through its turnaround plan. Immediate actions were taken to increase and protect the company's liquidity. Return-to-work guidelines and cost reductions were implemented.
Adient's shares dropped 2.2 percent to close at $31.29 on Monday.
Adient, of Plymouth, Mich., ranks No. 12 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $16.53 billion in 2019.
