Adient plc announced earnings results for the first quarter ended December 31, 2017. For the quarter, the company reported GAAP net income and EPS diluted of $216 million and $2.32, respectively. Adjusted net income and EPS were down just under 50% year-over-year at $99 million and $1.06 per share, respectively. Adjusted- EBIT totaled $163 million, which is down $120 million year-over-year, primarily driven by the performance within our Seat Structures & Mechanisms business. Adjusted EBITDA fell $103 million, in the quarter versus last year, driven in a large part by the operating performance within the SS&M business. Consolidated sales were $4.2 billion, an increase of $178 million compared to the same period a year ago. Adjusted free cash flow, defined as operating cash flow less CapEx, was a negative $270 million for the quarter. The outflow reflects the negative year-on-year operating performance combined with normal seasonality. Capital expenditures were $143 million compared to $207 million last year. Net debt totaled $3,111,000,000.

For the year, current projection for consolidated revenues continues to be $17.0 billion to $17.2 billion. With regard to adjusted EBIT, after factoring in first quarter performance, profit mitigation plans, expenditures related to Adient Aerospace and expected rise in chemical prices, the company is expecting fiscal 2018 will settle into a range between $975 million and $1.025 billion. As the year progresses and the mitigation actions within SS&M gain traction, the company expects to see positive earnings momentum build. The revised outlook is more than driven by challenges at YFAI. Adjusted EBITDA is expected to range between $1.40 -- or $1.40 billion and $1.45 billion. The company expects an effective tax rate of between 8% and 9% for the year. At the bottom line, the range for adjusted net income is expected to be between $700 million and $740 million. Although current expectations for capital expenditures are consistent with previous guidance at $575 million and $600 million, the team continues to assess various opportunities that may reduce or re-calendarize the planned spend. Finally, with regard to free cash flow, based on revised operating performance and the elevated calls for cash mentioned at the start of the year, which includes cash restructuring, becoming Adient costs and, to a lesser degree, Futuris integration costs, the company now expects free cash flow to settle in around $225 million for the year.