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Adient PLC ADNT Stock Quote

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Morningstar‘s Stock Analysis ADNT

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Is it the right time to buy or sell?

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Economic Moat

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Capital Allocation

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Adient Continues to Reduce Debt Despite Macroeconomic Uncertainty

Business Strategy and Outlook

| David Whiston, CFA, CPA, CFE |

Adient is the automotive seating business of Johnson Controls that was spun off to JCI shareholders in a taxable transaction Oct. 31, 2016. Adient leads the seating market with about 33% share globally. It is common for a spinoff to be ignored or misunderstood, but we think ignoring Adient just because it is an auto-parts supplier is shortsighted. Seating is one of the stickiest parts of the supplier sector since it is very difficult to take out an incumbent on a vehicle program, and automakers need suppliers that can consistently deliver high-quality seats in a just-in-time system all over the world. Automakers have global platforms and are willing to pay for the right supplier rather than the supplier simply with the lowest price. We think the seating sector can benefit from autonomous and electric vehicles rather than be hurt by the change because AVs and EVs open up new seating configurations and possibly more electronics content in seats.

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Key Statistics ADNT

Company Profile ADNT

Business Description

Adient began trading Oct. 31, 2016, when Johnson Controls spun off its automotive experience segment into this new company. Adient is the leading seating supplier to the industry with about one third of the global market. Its share in China is now nearly 20%, down from about 45%, following the sale of its main joint venture there at the end of fiscal 2021. Unconsolidated seating revenue from joint ventures after factoring in the sale was around $4.5 billion in fiscal 2021 and guidance for consolidated China revenue after the deal (before new China COVID-19 lockdowns in Spring 2022) was slightly over $1 billion. The company is headquartered in Ireland but has corporate offices in the Detroit area. Fiscal 2021 consolidated revenue, excluding joint venture sales, was $13.7 billion.

Contact
25-28 North Wall Quay, IFSC, Dublin 1
Dublin, D01 H104, Ireland
T +1 734 254-5000
Industry Auto Parts
Most Recent Earnings Jun 30, 2022
Fiscal Year End Sep 30, 2021
Employees 75,000

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