Seating supplier Adient, the former unit of Johnson Controls Inc. that spun off in 2016, said its core earnings before interest and taxes plunged 37 percent to $129 million during the most recent quarter.
The company also said Tuesday that it recorded $334 million in restructuring charges -- $250 million of which were for changes in tax-related valuations. Those charges helped push Aident to a net loss of $321 million. Adjusted net income fell 74 percent to $36 million.
Revenue fell 6 percent to $4.21 billion.
Adient for the most part has been in turnaround mode since the JCI spinoff. Its board ramped up those efforts by hiring CEO Doug Del Grosso in October. Restructuring efforts have included capital expenditure reductions and layoffs across its operations.
"Adient's turnaround plan is on track as evidenced by our Q3 financial results, which improved sequentially for the second consecutive quarter," Del Grosso said in a statement. "Benefits related to actions implemented earlier this year are gaining traction and more than offset significant industry weakness in the China market."
The statement noted new business wins with General Motors, Ford Motor Co., FAW, Volkswagen Group and Kia Motors Corp.
Despite the red ink, Adient's 38 cents in adjusted earnings per share beat the consensus Wall Street expection of 34 cents.
Adient shares gained 32 percent to $25.45 on Tuesday.
"While the absolute numbers don't look so good, Adient is turning the corner," wrote David Leiker, analyst for Robert W. Baird & Co. "Execution on turnaround going well: solid sequential improvements, new contract wins holding up, strong cash flow."
Investors have responded well to the supplier's efforts even after years of poor financial performance. Adient shares rose 23 percent year-to-date through Monday.
Adient, of Plymouth, Mich., ranks No. 13 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $17.4 billion in 2018.
Philip Nussel contributed to this report.