Adient plc

Previous wording

The results presented below are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to be impacted by inflationary pressures and volatile commodity pricing on certain input costs, along with the impacts of higher interest rates and volatility in consumer demand. The automotive industry continues to also experience significant change with the ongoing rollout of electric vehicles, which has recently shown signs of softening. Refer to the consolidated results of operations and segment analysis discussion below for additional information on the impacts of these items on Adient's results.

Current wording

The results presented below are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to experience softening consumer demand and lower than expected vehicle production along with higher interest rates, inflationary pressures and volatile commodity pricing on certain input costs. The automotive industry continues to also experience significant change with the ongoing rollout of electric vehicles, which continues to show signs of softening. Each segment is facing challenges including delayed vehicle launches in Americas, persistent operational and market-driven headwinds in EMEA and model changeovers in Asia. Refer to the consolidated results of operations and segment analysis discussion below for additional information on the impacts of these items on Adient's results. Adient is closely monitoring the financial results of its EMEA segment for implications on the recoverability of long-lived assets, including goodwill. While no impairment is deemed to have occurred as of June 30, 2024, if trends impacting the EMEA segment remain unfavorable and financial results further decline, additional restructuring actions may be necessary and impairment of long-lived assets, including goodwill, may occur in future periods.

Previous wording

Adient conducts its business globally in the automotive industry, which is highly competitive and sensitive to economic, political and social factors in the various regions. During the three and six months ended March 31, 2024, global light vehicle production increased 0.9% and 5.4%, respectively, driven by improved production volumes predominately in China and North America. The current operating environment varies by region, being impacted by a more traditional demand-driven model including higher interest rates and slowing consumer demand due to affordability concerns along with slower electric vehicle adoption rates in certain regions.

Current wording

Adient conducts its business globally in the automotive industry, which is highly competitive and sensitive to economic, political and social factors in the various regions. During the three and nine months ended June 30, 2024, global light vehicle production increased 0.5% and 3.8%, respectively, driven by improved production volumes predominately in China and North America. The current operating environment varies by region, being impacted by a more traditional demand-driven model including higher interest rates and slowing consumer demand due to affordability concerns along with slower electric vehicle adoption rates in certain regions.

Previous wording

Significant aspects of Adient's financial results for the second quarter of fiscal 2024 include the following:

Current wording

Significant aspects of Adient's financial results for the third quarter of fiscal 2024 include the following:

Previous wording

•Adient recorded net sales of $3,750 million for the second quarter of fiscal 2024, representing a decrease of $162 million or 4.1% when compared to the second quarter of fiscal 2023. The decrease in net sales is attributable to Adient's lower overall production volumes in the Americas and EMEA regions, the unfavorable impact of foreign currencies and unfavorable material economics recoveries, partially offset by net favorable pricing adjustments.

Current wording

•Adient recorded net sales of $3,716 million for the third quarter of fiscal 2024, representing a decrease of $339 million or 8.4% when compared to the third quarter of fiscal 2023. The decrease in net sales is attributable to Adient's lower overall production volumes in all regions, the unfavorable impact of foreign currencies, unfavorable material economics recoveries, and unfavorable net pricing adjustments.

Previous wording

•Gross profit was $230 million, or 6.1% of net sales, for the second quarter of fiscal 2024 compared to $250 million, or 6.4% of net sales for the second quarter of fiscal 2023. Profitability, including gross profit as a percentage of net sales, was lower due to lower production volumes in the Americas and EMEA regions and the unfavorable impact of foreign currencies, partially offset by favorable business performance and favorable material economics, net of recoveries.

Current wording

•Gross profit was $207 million, or 5.6% of net sales, for the third quarter of fiscal 2024 compared to $302 million, or 7.4% of net sales for the third quarter of fiscal 2023. Profitability, including gross profit as a percentage of net sales, was lower due to lower production volumes in all regions, the unfavorable impact of foreign currencies, unfavorable business performance in EMEA, unfavorable material economics, net of recoveries and non-recurring net benefits largely associated with insurance recoveries in fiscal 2023.

Previous wording

Net sales decreased by $201 million, or 3%, during the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 due to lower overall production volumes in all regions that are resulting from slower than expected product launches and production disruptions at certain customers resulting primarily from the United Auto Workers ("UAW") strike during the first fiscal quarter in the Americas and softening demand in EMEA ($226 million), unfavorable material economics recoveries ($53 million), partially offset by net favorable pricing adjustments ($50 million) and the favorable impact of foreign currencies ($28 million). Refer to the segment analysis below for a discussion of segment net sales.

Current wording

Net sales decreased by $540 million, or 5%, during the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 due to lower overall production volumes in all regions that are resulting from slower than expected product launches, production disruptions at certain customers resulting primarily from the United Auto Workers ("UAW") strike during the first fiscal quarter in the Americas and softening demand and weaker program mix in EMEA ($489 million), unfavorable material economics recoveries ($73 million) and the unfavorable impact of foreign currencies ($26 million), partially offset by net favorable pricing adjustments ($48 million). Refer to the segment analysis below for a discussion of segment net sales.

Previous wording

Cost of sales decreased by $142 million, or 4%, and gross profit decreased by $20 million, or 8%, in the second quarter of fiscal 2024 as compared to the second quarter of fiscal 2023. The year over year decrease in cost of sales was due to lower production volumes ($100 million), favorable material economics ($37 million) and the favorable impact of foreign currencies ($16 million), partially offset by higher operating costs ($7 million), higher restructuring related charges ($2 million), net unfavorable pricing adjustments ($1 million) and higher depreciation expense ($1 million). Gross profit for the three months ended March 31, 2024 was unfavorably impacted by lower production volumes and the unfavorable impact of foreign currencies, partially offset by favorable business performance and favorable material economics, net of recoveries.

Current wording

Cost of sales decreased by $244 million, or 7%, and gross profit decreased by $95 million, or 31%, in the third quarter of fiscal 2024 as compared to the third quarter of fiscal 2023. The year over year decrease in cost of sales was primarily due to lower production volumes ($203 million), the favorable impact of foreign currencies ($38 million), favorable material economics ($18 million), favorable supplier pricing adjustments ($6 million) and the favorable impact of the KEIPER supply agreement modifications ($3 million), partially offset by non-recurring net benefits largely associated with insurance recoveries in fiscal 2023 ($21 million). Gross profit for the three months ended June 30, 2024 was unfavorably impacted by lower production volume, the unfavorable impact of foreign currencies, unfavorable business performance, unfavorable material economics, net of recoveries and non-recurring net benefits largely associated with insurance recoveries in fiscal 2023.

Previous wording

Cost of sales decreased by $196 million, or 3%, and gross profit decreased by $5 million, or 1%, in the first six months of fiscal 2024 as compared to the first six months of fiscal 2023. The year over year decrease in cost of sales was due to lower production volumes ($158 million), favorable material economics ($65 million), net favorable pricing adjustments ($13 million) and favorable business performance ($10 million), partially offset by the unfavorable impact of foreign currencies ($44 million), higher depreciation expense ($5 million) and higher restructuring related charges ($1 million). Gross profit for the six months ended March 31, 2024 was unfavorably impacted by lower production volumes, the unfavorable impact of foreign currencies and higher depreciation expense, partially offset by favorable business performance and favorable material economics, net of recoveries such that gross profit as a percentage of sales increased. Refer to the segment analysis below for a discussion of segment profitability.

Current wording

Cost of sales decreased by $440 million, or 4%, and gross profit decreased by $100 million, or 13%, in the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023. The year over year decrease in cost of sales was primarily due to lower production volumes ($361 million), favorable material economics ($83 million), the favorable impact of the KEIPER supply agreement modifications ($14 million), favorable business performance ($10 million) and favorable supplier pricing adjustments ($8 million), partially offset by non-recurring net benefits largely associated with insurance recoveries in fiscal 2023 ($21 million), higher depreciation expense ($6 million), the unfavorable impact of foreign currencies ($5 million) and higher restructuring related charges ($3 million). Gross profit for the nine months ended June 30, 2024 was unfavorably impacted by lower production volumes, the unfavorable impact of foreign currencies, unfavorable business performance, higher depreciation expense and non-recurring net benefits largely associated with insurance recoveries in fiscal 2023, partially offset by favorable material economics, net of recoveries. Refer to the segment analysis below for a discussion of segment profitability.

Previous wording

SG&A expenses decreased by $26 million, or 18%, in the second quarter of fiscal 2024 as compared to the second quarter of fiscal 2023. The year over year decrease in SG&A was due to lower compensation expense including lower performance-based incentive compensation costs and other compensation related austerity measures ($14 million), lower overall engineering and other administrative spending ($8 million), lower depreciation and amortization expense ($3 million) and the favorable impact of foreign currencies ($1 million).

Current wording

SG&A expenses decreased by $27 million, or 18%, in the third quarter of fiscal 2024 as compared to the third quarter of fiscal 2023. The year over year decrease in SG&A was primarily due to lower net engineering and other administrative spending ($13 million), lower compensation expense including lower performance-based incentive compensation costs ($7 million), lower depreciation and amortization expense ($5 million) and the favorable impact of foreign currencies ($3 million).

Previous wording

SG&A for the first six months of fiscal 2024 decreased by $17 million, or 6%, as compared to the first six months of fiscal 2023. The year over year decrease in SG&A was due to lower overall engineering and other administrative spending ($7 million), lower compensation expense including performance-based incentive compensation costs and other compensation related austerity measures ($5 million), lower depreciation and amortization expense ($5 million), higher levels of gains on sales of assets ($4 million), non-recurring contract related settlement ($3 million) and lower transaction costs ($2 million), partially offset by a one-time loss on business divestiture ($8 million) and the unfavorable impact of foreign currencies ($1 million).

Current wording

SG&A for the first nine months of fiscal 2024 decreased by $44 million, or 10%, as compared to the first nine months of fiscal 2023. The year over year decrease in SG&A was primarily due to lower net engineering and other administrative spending ($20 million), lower compensation expense including performance-based incentive compensation costs and other compensation related austerity measures ($12 million), lower depreciation and amortization expense ($10 million), higher levels of gains on sales of assets ($4 million), non-recurring contract related settlement ($3 million), the favorable impact of foreign currencies ($2 million) and lower transaction costs ($2 million), partially offset by a one-time loss on business divestiture ($8 million).

Previous wording

Restructuring and impairment costs were higher by $108 million during the second quarter of fiscal 2024 and higher by $112 million during the first six months of fiscal 2024 due to restructuring actions taken primarily in EMEA in response to structural changes occurring in the European automotive market and to ensure Adient maintains a competitive cost structure by reducing labor costs and increasing efficiencies. Adient continues to monitor and assess market conditions within the automotive industry in each of its regions and will consider taking further restructuring action as needed to stay competitive and to position Adient to serve the needs of its customers. Refer to Note 13, "Restructuring and Impairment Costs," of the notes to the consolidated financial statements and the discussion under Liquidity and Capital Resources below for additional information related to Adient's restructuring plans.

Current wording

Restructuring and impairment costs were higher by $10 million during the third quarter of fiscal 2024 and higher by $122 million during the first nine months of fiscal 2024 due to restructuring actions taken primarily in EMEA in response to structural changes occurring in the European automotive market and to ensure Adient maintains a competitive cost structure by reducing labor costs and increasing efficiencies. Adient continues to monitor and assess market conditions within the automotive industry in each of its regions, with particular focus on EMEA in the near term, and will consider taking further restructuring action as needed to stay competitive and to position Adient to serve the needs of its customers. Refer to Note 13, "Restructuring and Impairment Costs," of the notes to the consolidated financial statements and the discussion under Liquidity and Capital Resources below for additional information related to Adient's restructuring plans.

Previous wording

Equity income was $18 million for the second quarter of fiscal 2024, compared to $4 million in the second quarter of fiscal 2023. The increase is primarily attributable to favorable production volumes and operating performance at partially-owned affiliates ($10 million), the non-recurrence of prior year non-cash impairment charges recorded on certain of Adient's investments in non-consolidated affiliates ($7 million), partially offset by the impact of the KEIPER supply agreement modifications executed in fiscal 2023 ($2 million) and the unfavorable impact of foreign currencies ($1 million).

Current wording

Equity income was $24 million for the third quarter of fiscal 2024, compared to $25 million in the third quarter of fiscal 2023. The decrease is primarily attributable to the unfavorable impact of foreign currencies ($2 million) and the impact of the KEIPER supply agreement modifications executed in fiscal 2023 ($2 million), partially offset by various non-recurring gains ($3 million).

Previous wording

Equity income was $41 million for the first six months of fiscal 2024, compared to $32 million for the first six months of fiscal 2023. The increase is primarily attributable to favorable production volumes and operating performance at partially-owned affiliates ($11 million), the non-recurrence of prior year non-cash impairment charges recorded on certain of Adient's investments in non-consolidated affiliates ($6 million), partially offset by the impact of the KEIPER supply agreement modifications executed in fiscal 2023 ($4 million), the unfavorable impact of foreign currencies ($2 million) and a one-time divestiture related tax impact at an affiliate ($2 million).

Current wording

Equity income was $65 million for the first nine months of fiscal 2024, compared to $57 million for the first nine months of fiscal 2023. The increase is primarily attributable to favorable production volumes and operating performance at partially-owned affiliates ($11 million), the non-recurrence of prior year non-cash impairment charges recorded on certain of Adient's investments in non-consolidated affiliates ($6 million) and various non-recurring gains ($3 million), partially offset by the impact of the KEIPER supply agreement modifications executed in fiscal 2023 ($6 million), the unfavorable impact of foreign currencies ($4 million) and a one-time divestiture related tax impact at an affiliate ($2 million).

Previous wording

Net financing charges decreased by $12 million in the second quarter of fiscal 2024 as compared to the second quarter of fiscal 2023, and by $9 million during the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 due primarily to premiums paid and deferred financing cost write offs associated with repurchasing of debt in the second quarter of fiscal 2023. Refer to Note 8, "Debt and Financing Arrangements," of the notes to the consolidated financial statements for further information related to Adient's debt transactions and components of net financing charges.

Current wording

Net financing charges decreased by $10 million during the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 due primarily to premiums paid and deferred financing cost write offs associated with repurchasing of debt in the second quarter of fiscal 2023. Refer to Note 8, "Debt and Financing Arrangements," of the notes to the consolidated financial statements for further information related to Adient's debt transactions and components of net financing charges.

Previous wording

There was no change in other pension expense in the second quarter of fiscal 2024 compared to the second quarter of fiscal 2023.

Current wording

There was no change in other pension expense in the third quarter of fiscal 2024 compared to the third quarter of fiscal 2023.

Previous wording

Other pension expense was lower by $7 million for the first six months of fiscal 2024 as compared to the first six months of fiscal 2023 due primarily to a prior year non-recurring curtailment loss associated with employee termination benefit plans in the Americas. Refer to Note 12, "Retirement Plans," of the notes to the consolidated financial statements for information related to the non-service components of Adient's net periodic pension costs.

Current wording

Other pension expense was lower by $7 million for the first nine months of fiscal 2024 as compared to the first nine months of fiscal 2023 due primarily to a prior year non-recurring curtailment loss associated with employee termination benefit plans in the Americas. Refer to Note 12, "Retirement Plans," of the notes to the consolidated financial statements for information related to the non-service components of Adient's net periodic pension costs.

Previous wording

The second quarter fiscal 2024 income tax expense of $8 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances, partially offset by $14 million of tax benefits from the release of uncertain tax positions due to audit closures. The second quarter fiscal 2023 income tax expense of $25 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and foreign tax rate differentials.

Current wording

The third quarter fiscal 2024 income tax expense of $40 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and $15 million of tax expense related to foreign exchange remeasurements of tax balances primarily in Mexico. The third quarter of fiscal 2023 income tax expense of $28 million was higher than the statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and foreign tax rate differentials.

Previous wording

The first six months of fiscal 2024 income tax expense of $28 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances, partially offset by $17 million of tax benefits from the release of uncertain tax positions due to audit closures. The first six months of fiscal 2023 income tax expense of $56 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and foreign tax rate differentials.

Current wording

The first nine months of fiscal 2024 income tax expense of $68 million was higher than the Irish statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and $8 million of tax expense related to foreign exchange remeasurements of tax balances primarily in Mexico, partially offset by $17 million of tax benefits from the release of uncertain tax positions due to audit closures. The first nine months of fiscal 2023 income tax expense of $84 million was higher than the statutory rate of 12.5% primarily due to the inability to record a tax benefit for losses in jurisdictions with valuation allowances and foreign tax rate differentials.

Previous wording

The decrease in income attributable to noncontrolling interests in the second quarter of fiscal 2024 as compared to the second quarter of fiscal 2023 is primarily attributable to lower production volumes associated with new launches at certain affiliates.

Current wording

The decrease in income attributable to noncontrolling interests in the third quarter of fiscal 2024 as compared to the third quarter of fiscal 2023 is primarily attributable to lower production volumes associated with new launches at certain affiliates.

Previous wording

The first six months of fiscal 2024 compared to the first six months of fiscal 2023 shows no change in income attributable to noncontrolling interests, however, lower production volumes associated with new launches at certain affiliates are offset by a $5 million adjustment to increase income attributable to noncontrolling interests related to the three months ended September 30, 2023.

Current wording

The decrease in income attributable to noncontrolling interests in the first nine months of fiscal 2024 compared to the first nine months of fiscal 2023 is attributable to lower production volumes associated with new launches at certain affiliates, which are offset by a $5 million adjustment to increase income attributable to noncontrolling interests related to periods prior to September 30, 2023.

Previous wording

Net loss attributable to Adient was $50 million for the first six months of fiscal 2024, compared to net loss attributable to Adient of $3 million for the first six months of fiscal 2023. The higher net loss in fiscal 2024 is primarily attributable to higher restructuring costs, lower production volumes, the unfavorable impact of foreign currencies, partially offset by favorable material economics, net of recoveries, lower SG&A expenses mainly driven by overall engineering and other administrative spending, higher equity income, lower depreciation and amortization expense, lower income tax expense, and lower other pension expense.

Current wording

Net loss attributable to Adient was $61 million for the first nine months of fiscal 2024, compared to net income attributable to Adient of $70 million for the first nine months of fiscal 2023. The net loss in fiscal 2024 is primarily attributable to lower overall production volumes, higher restructuring costs, the unfavorable impact of foreign currencies, non-recurring net benefits largely associated with insurance recoveries in fiscal 2023, a one-time loss on business divestiture and higher depreciation, partially offset by lower SG&A expenses mainly driven by lower incentive compensation expense and net engineering and other administrative spending, favorable pricing adjustments, favorable material economics, net of recoveries, lower income tax expense, higher equity income, lower net financing charges and lower other pension expense.

Previous wording

Comprehensive loss attributable to Adient was $168 million for the second quarter of fiscal 2024 compared to $28 million of comprehensive income for the second quarter of fiscal 2023. The decrease of $196 million is due primarily to lower net income ($59 million), the unfavorable impact of foreign currency translation adjustments ($136 million), and the unfavorable impact of realized and unrealized losses on derivatives ($20 million), partially offset by lower comprehensive income attributable to noncontrolling interests ($19 million).

Current wording

Comprehensive loss attributable to Adient was $78 million for the third quarter of fiscal 2024 compared to $6 million of comprehensive income for the third quarter of fiscal 2023. The decrease of $84 million is due primarily to lower net income ($90 million), higher realized and unrealized losses on derivatives ($34 million), higher comprehensive income attributable to noncontrolling interests ($3 million), partially offset by the impact of foreign currency translation adjustments ($43 million).

Previous wording

Comprehensive loss attributable to Adient was $10 million for the first six months of fiscal 2024 compared to $155 million of comprehensive income for the first six months of fiscal 2023. The decrease of $165 million is due primarily to lower net income ($47 million), the unfavorable impact of foreign currency translation adjustments ($100 million), and the impact of realized and unrealized gains on derivatives ($36 million), partially offset by lower comprehensive income attributable to noncontrolling interests ($18 million).

Current wording

Comprehensive loss attributable to Adient was $88 million for the first nine months of fiscal 2024 compared to $161 million of comprehensive income for the first nine months of fiscal 2023. The decrease of $249 million is due primarily to lower net income ($137 million), higher realized and unrealized losses on derivatives ($70 million) and the unfavorable impact of foreign currency translation adjustments ($57 million), partially offset by lower comprehensive income attributable to noncontrolling interests ($15 million).

Previous wording

The results presented below are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to manage inflationary pressures and volatile commodity pricing on certain input costs, and as it addresses the impacts of higher interest rates and volatility in consumer demand. Refer to the Factors Affecting Adient’s Operating Environment section in this Form 10-Q and within our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, for additional information on factors that have impacted Adient.

Current wording

The results presented below are not necessarily indicative of full-year results as Adient, along with the automotive industry, continues to experience softening consumer demand and lower than expected vehicle production along with higher interest rates, inflationary pressures and volatile commodity pricing on certain input costs. The automotive industry continues to also experience significant change with the ongoing rollout of electric vehicles, which continues to show signs of softening. Refer to the Factors Affecting Adient’s Operating Environment section in this Form 10-Q and within our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, for additional information on factors that have impacted Adient. Adient is closely monitoring the financial results of its EMEA segment for implications on the recoverability of long-lived assets, including goodwill. While no impairment is deemed to have occurred as of June 30, 2024, if trends impacting the EMEA segment remain unfavorable and financial results further decline, additional restructuring actions may be necessary and impairment of long-lived assets, including goodwill, may occur in future periods.

Previous wording

(4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities. The six months ended March 31, 2024 includes a $10 million gain on sale of a restructured facility.

Current wording

(4) Reflects restructuring-related charges for costs that are recorded as incurred or as earned and other non-recurring impacts that are directly attributable to restructuring activities. The nine months ended June 30, 2024 includes a $10 million gain on sale of a restructured facility.

Previous wording

(5) The three months ended March 31, 2023 reflects $4 million and $3 million of non-recurring impairment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively. The six months ended March 31, 2023 also reflects a $1 million non-recurring adjustment to certain of Adient's investments.

Current wording

(5) The nine months ended June 30, 2023 reflects $4 million and $3 million of non-recurring impairment to certain of Adient's investments in nonconsolidated partially-owned affiliates in Asia and EMEA, respectively, partially offset by $1 million non-recurring adjustment to certain of Adient's investments.

Previous wording

(6) During the six months ended March 31, 2024, a $5 million adjustment was recorded to increase equity-based compensation expense related to a retired executive's equity awards that should have been recognized in periods prior to September 30, 2023.

Current wording

(6) During the nine months ended June 30, 2024, a $5 million adjustment was recorded to increase equity-based compensation expense related to a retired executive's equity awards that should have been recognized in periods prior to September 30, 2023.

Previous wording

(7) The three months ended March 31, 2024 reflects $1 million of indirect tax recoveries in Brazil. The six months ended March 31, 2024 includes an $8 million loss on sale of 51% of Adient's interest in LFADNT (as described in Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements), and a $2 million one-time divestiture related tax impact at an affiliate, partially offset by a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil.

Current wording

(7) The nine months ended June 30, 2024 includes an $8 million loss on sale of 51% of Adient's interest in LFADNT (as described in Note 3, "Acquisitions and Divestitures," of the notes to consolidated financial statements), $1 million of transaction costs and a $1 million one-time divestiture related impact at an affiliate, partially offset by a $3 million non-recurring gain on a contract related settlement and $1 million of indirect tax recoveries in Brazil.

Previous wording

(8) The six months ended March 31, 2023 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.

Current wording

(8) The nine months ended June 30, 2023 includes an $8 million curtailment loss associated with employee termination benefit plans in the Americas segment.

Previous wording

Net sales decreased during the second quarter of fiscal 2024 by $101 million primarily due to lower current quarter production volumes resulting from slower than expected product launches ($103 million), unfavorable material economics recoveries ($10 million) and the unfavorable impact of foreign currencies ($2 million), partially offset by net favorable pricing adjustments ($14 million).

Current wording

Net sales decreased during the third quarter of fiscal 2024 by $163 million primarily due to lower current quarter production volumes resulting from adverse customer mix and slower than expected product launches ($172 million), unfavorable material economics recoveries ($8 million) and the unfavorable impact of foreign currencies ($8 million), partially offset by net favorable pricing adjustments ($25 million).

Previous wording

Net sales decreased during the first six months of fiscal 2024 by $178 million primarily due to lower current year production volumes resulting from slower than expected product launches and the UAW strike-related disruptions at certain customers ($183 million), unfavorable material economics recoveries ($35 million) and the unfavorable impact of foreign currencies ($2 million), partially offset by net favorable pricing adjustments ($42 million).

Current wording

Net sales decreased during the first nine months of fiscal 2024 by $341 million primarily due to lower current year production volumes resulting from slower than expected product launches and the UAW strike-related disruptions during the first quarter of fiscal 2024 at certain customers ($355 million), unfavorable material economics recoveries ($43 million) and the unfavorable impact of foreign currencies ($10 million), partially offset by net favorable pricing adjustments ($67 million).

Previous wording

Adjusted EBITDA increased during the second quarter of fiscal 2024 by $8 million due to lower SG&A expenses driven by lower compensation expense including lower performance-based compensation costs and other compensation related austerity measures ($20 million), favorable business performance ($15 million) and favorable material economics, net of recoveries ($4 million), partially offset by lower current quarter production volumes ($26 million) and the unfavorable impact of foreign currencies ($5 million).

Current wording

Adjusted EBITDA increased during the third quarter of fiscal 2024 by $4 million due to favorable business performance resulting from net favorable pricing adjustments and improved freight costs ($31 million), lower SG&A expenses driven by lower compensation expense, including lower performance-based compensation costs, along with improved engineering recoveries ($14 million) and favorable material economics, net of recoveries ($1 million), partially offset by lower current quarter production volumes ($34 million), non-recurring net benefits largely associated with insurance recoveries in fiscal 2023 ($4 million) and the unfavorable impact of foreign currencies ($4 million).

Previous wording

Adjusted EBITDA increased during the first six months of fiscal 2024 by $19 million, despite a $25 million unfavorable impact resulting from the UAW strike-related production disruptions at certain customers. The increase was due to favorable business performance ($66 million) and lower SG&A expenses driven by lower compensation expense including lower performance based compensation costs and other compensation related austerity measures ($21 million), partially offset by lower current quarter production volumes ($40 million, including UAW strike-related impact), the unfavorable impact of foreign currencies ($14 million) and unfavorable material economics, net of recoveries ($14 million).

Current wording

Adjusted EBITDA increased during the first nine months of fiscal 2024 by $23 million, despite a $25 million unfavorable impact resulting from the UAW strike-related production disruptions during the first quarter of fiscal 2024 at certain customers. The increase was due to favorable business performance resulting from net favorable pricing adjustments and improved freight costs ($97 million) and lower SG&A expenses driven by lower compensation expense, including lower performance based compensation costs and other compensation related austerity measures, along with improved engineering recoveries ($35 million), partially offset by lower current year production volumes ($74 million, including UAW strike-related impact), the unfavorable impact of foreign currencies ($18 million), unfavorable material economics, net of recoveries ($13 million) and non-recurring net benefits largely associated with insurance recoveries in fiscal 2023 ($4 million).

Previous wording

Net sales increased during the first six months of fiscal 2024 by $55 million primarily as a result of the favorable impact of foreign currencies ($81 million) and net favorable pricing adjustments ($15 million), partially offset by lower current year production volumes due to softening demand ($24 million) and unfavorable material economics recoveries ($17 million).

Current wording

Net sales decreased during the third quarter of fiscal 2024 by $150 million primarily as a result of lower current quarter production volumes due to lower vehicle sales across customer platforms resulting from overall weakness in industry demand and program mix ($90 million), net unfavorable pricing adjustments ($38 million), unfavorable material economics recoveries ($11 million) and the unfavorable impact of foreign currencies ($11 million).

Previous wording

Net sales decreased during the second quarter of fiscal 2024 by $31 million primarily as a result of lower current quarter production volumes due to softening demand ($52 million) and unfavorable material economics recoveries ($6 million), partially offset by the favorable impact of foreign currencies ($17 million) and net favorable pricing adjustments ($10 million).

Current wording

Net sales decreased during the first nine months of fiscal 2024 by $95 million primarily as a result of lower production volumes (primarily occurring in the current quarter) due to lower vehicle sales across customer platforms resulting from overall weakness in industry demand and program mix ($114 million), unfavorable material economics recoveries ($28 million) and net unfavorable pricing adjustments ($23 million), partially offset by the favorable impact of foreign currencies ($70 million).

Previous wording

Adjusted EBITDA increased during the second quarter of fiscal 2024 by $4 million due to favorable material economics, net of recoveries ($15 million), lower administrative and engineering expense ($5 million), increased equity income ($1 million) and the favorable impact of foreign currencies ($1 million), partially offset by lower current quarter production volumes ($15 million) and unfavorable business performance driven by higher launch costs ($3 million).

Current wording

Adjusted EBITDA decreased during the third quarter of fiscal 2024 by $78 million due to unfavorable business performance driven by higher operating costs associated with lower levels of customer orders, often with very little warning, leading to unplanned downtime and operating inefficiencies ($38 million), non-recurring net benefits largely associated with insurance recoveries in fiscal 2023 ($17 million), lower current quarter production volumes ($16 million), unfavorable material economics, net of recoveries ($5 million) and the unfavorable impact of foreign currencies ($3 million), partially offset by increased equity income ($1 million).

Previous wording

Adjusted EBITDA increased during the first six months of fiscal 2024 by $21 million due to favorable material economics, net of recoveries ($21 million), favorable business performance ($11 million), the favorable impact of foreign currencies ($7 million), increased equity income ($3 million), and lower administrative and engineering expense ($1 million), partially offset by lower current year production volumes ($16 million) and the non-recurrence of prior year gains on sale of assets ($6 million).

Current wording

Adjusted EBITDA decreased during the first nine months of fiscal 2024 by $57 million due to unfavorable business performance driven by higher operating costs associated with lower levels of customer orders, often with little warning, (primarily occurring in the current quarter) leading to unplanned downtime and operating inefficiencies ($32 million), higher operating costs ($27 million), non-recurring net benefits largely associated with insurance recoveries in fiscal 2023 ($17 million) and the non-recurrence of prior year gains on sale of assets ($6 million), partially offset by favorable material economics, net of recoveries ($16 million), lower administrative and engineering expense ($1 million), the favorable impact of foreign currencies ($4 million) and increased equity income ($4 million).

Previous wording

Net sales decreased during the first six months of fiscal 2024 by $83 million due to the unfavorable impact of foreign currencies ($50 million), lower current year production volumes due primarily to program changeovers, program launches and lower volumes on foreign OEM platforms in China ($25 million), lower levels of pricing adjustments ($7 million) and unfavorable material economics recoveries ($1 million).

Current wording

Net sales decreased during the first nine months of fiscal 2024 by $113 million due to the unfavorable impact of foreign currencies ($86 million), lower current year production volumes due primarily to program changeovers, program launches and lower volumes on foreign OEM platforms in China ($30 million) and unfavorable material economics recoveries ($2 million), partially offset by net favorable pricing adjustments ($5 million).

Previous wording

Adjusted EBITDA decreased during the second quarter of fiscal 2024 by $1 million due to lower current year production volumes and unfavorable product mix ($10 million) and the unfavorable impact of foreign currencies ($9 million), partially offset by higher equity income ($7 million) due to higher production volumes at certain of our partially owned affiliates and including the unfavorable impact of the KEIPER supply agreement modifications, favorable commercial settlements ($8 million), favorable business performance ($2 million) and favorable material economics, net of recoveries ($1 million).

Current wording

Adjusted EBITDA increased during the third quarter of fiscal 2024 by $1 million due to favorable business performance resulting from net favorable pricing adjustments and improved labor efficiencies ($19 million) and favorable material economics, net of recoveries ($1 million), partially offset by lower current year production volumes and unfavorable product mix ($10 million), the unfavorable impact of foreign currencies ($7 million) and lower equity income which reflects the impact of the KEIPER supply agreement modifications executed in fiscal 2023 ($2 million).

Previous wording

Adjusted EBITDA decreased during the first six months of fiscal 2024 by $25 million due to lower current year production volumes and unfavorable product mix ($13 million), the unfavorable impact of foreign currencies ($13 million) and higher administrative and engineering expense ($2 million), partially offset by favorable material economics, net of recoveries ($5 million), favorable business performance ($5 million) and higher equity income which includes the unfavorable impact of the KEIPER supply agreement modifications ($3 million).

Current wording

Adjusted EBITDA decreased during the first nine months of fiscal 2024 by $24 million due to lower current year production volumes and unfavorable product mix ($23 million), the unfavorable impact of foreign currencies ($20 million) and higher administrative and engineering expense ($2 million), partially offset by favorable business performance resulting from net favorable pricing adjustments and improved labor efficiencies ($14 million), favorable material economics, net of recoveries ($6 million) and higher equity income which includes the unfavorable impact of the KEIPER supply agreement modifications ($1 million).