DETROIT, January 17, 2018 /PRNewswire/ --
Adient Aerospace will develop, manufacture, and sell a
portfolio of seating products to airlines and leasing
companies
Adient, plc (NYSE: ADNT) and Boeing (NYSE: BA) today announced
the formation of Adient Aerospace, a joint venture that will
develop, manufacture, and sell a portfolio of seating products to
airlines and aircraft leasing companies. The seats will be
available for installation on new airplanes and as retrofit
configurations for aircraft produced by Boeing and other commercial
airplane manufacturers.
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The joint venture between Adient, the global leader in
automotive seating, and Boeing, the world's largest aerospace
company, addresses the aviation industry's need for more capacity
in the seating category, superior quality and reliable on-time
performance. Adient Aerospace will benefit from the world-class
engineering teams and innovative cultures at both companies, as
well as shared expertise in managing complex, global supply
chains.
"Adient has a strong set of transferable competencies that will
offer a unique opportunity to create value for our company and for
Boeing, our shareholders and the broader commercial aircraft
market," said Adient chairman and CEO Bruce
McDonald. "To enhance the customer experience for
passengers, airlines and commercial airplane manufacturers, we will
apply our unmatched expertise for comfort and craftsmanship along
with our reputation for operational excellence."
"Seats have been a persistent challenge for our customers, the
industry and Boeing, and we are taking action to help address
constraints in the market. Adient Aerospace will
leverage Boeing's industry leadership and deep understanding
of customer needs and technical requirements, to provide a superior
seating product for airlines and passengers around the world," said
Kevin Schemm, senior vice president
of Supply Chain Management, Finance & Business Operations and
chief financial officer for Boeing Commercial Airplanes.
"This joint venture supports Boeing's vertical integration
strategy to develop in-house capabilities and depth in key areas to
offer better products, grow services and generate higher lifecycle
value."
Adient Aerospace's headquarters, technology center and initial
production plant will be located in Kaiserslautern, Germany, near Frankfurt. The joint venture's initial
customer service center will be based in Seattle, Washington. Adient Aerospace
aftermarket spare parts distribution will be performed exclusively
through Aviall, a wholly owned subsidiary of Boeing.
Adient is the majority stakeholder in the new company (50.01
percent share) and expects the joint venture to be included in its
consolidated financial statements. Boeing (as 49.99 percent
partner) will receive a proportionate share of the earnings and
cash flow. Both will have representation on Adient Aerospace's
board of directors.
Industry analysts forecast the commercial aircraft seating
market to grow from approximately $4.5
billion in 2017 to $6 billion
by 2026.
About Adient:
Adient is the global leader in automotive seating. With
85,000 employees operating 238 manufacturing/assembly plants in 34
countries worldwide, we produce and deliver automotive seating for
all vehicle classes and all major OEMs. From complete seating
systems to individual components, our expertise spans every step of
the automotive seat making process. Our integrated, in-house skills
allow us to take our products from research and design all the way
to engineering and manufacturing - and into more than 25 million
vehicles every year. For more information on Adient, please visit
adient.com.
About Boeing:
Boeing is the world's largest aerospace company and leading
manufacturer of commercial airplanes and defense, space and
security systems. Boeing is also the world leader in combined
commercial airlines and government services with customers in more
than 150 countries. The company's products and tailored services
include commercial and military aircraft, satellites, weapons,
electronic and defense systems, launch systems, advanced
information and communication systems, and performance-based
logistics and training. Boeing employs approximately 140,000 people
across the United States and in
more than 65 countries. Company revenues for 2016 were $94.6 billion.
Cautionary Statement Regarding Forward-Looking
Statements:
Adient has made statements in this document that are
forward-looking and, therefore, are subject to risks and
uncertainties. All statements in this document other than
statements of historical fact are statements that are, or could be,
deemed "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. In this document,
statements regarding Adient's future financial position, sales,
costs, earnings, cash flows, other measures of results of
operations, capital expenditures or debt levels and plans,
objectives, outlook, targets, guidance or goals are forward-looking
statements. Words such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," "should," "forecast,"
"project" or "plan" or terms of similar meaning are also generally
intended to identify forward-looking statements. Adient cautions
that these statements are subject to numerous important risks,
uncertainties, assumptions and other factors, some of which are
beyond Adient's control, that could cause Adient's actual results
to differ materially from those expressed or implied by such
forward-looking statements, including, among others, risks related
to: the ability of Adient Aerospace to successfully implement its
strategic initiatives or realize the expected benefits of the joint
venture, the ability of Adient to meet debt service requirements,
the ability and terms of financing, general economic and business
conditions, the strength of the U.S. or other economies, automotive
vehicle production levels, mix and schedules, energy and commodity
prices, the availability of raw materials and component products,
currency exchange rates, the ability of Adient to effectively
integrate the Futuris business, and cancellation of or changes to
commercial arrangements. A detailed discussion of risks related to
Adient's business is included in the section entitled "Risk
Factors" in Adient's Annual Report on Form 10-K for the fiscal year
ended September 30, 2017 filed with
the SEC on November 22, 2017 and
quarterly reports on Form 10-Q filed with the SEC, available at
http://www.sec.gov. Potential investors and others should consider
these factors in evaluating the forward-looking statements and
should not place undue reliance on such statements. The
forward-looking statements included in this document are made only
as of the date of this document, unless otherwise specified, and,
except as required by law, Adient assumes no obligation, and
disclaims any obligation, to update such statements to reflect
events or circumstances occurring after the date of this
document.
In addition, this document includes certain projections provided
by Adient with respect to the anticipated future performance of
Adient's businesses. Such projections reflect various assumptions
of Adient's management concerning the future performance of
Adient's businesses, which may or may not prove to be correct. The
actual results may vary from the anticipated results and such
variations may be material. Adient does not undertake any
obligation to update the projections to reflect events or
circumstances or changes in expectations after the date of this
document or to reflect the occurrence of subsequent events. No
representations or warranties are made as to the accuracy or
reasonableness of such assumptions or the projections based
thereon.
CONTACT
Adient:
Ulrich Andree
T: +49-2174-65-4343
ulrich.andree@adient.com
Boeing Communications
T: +1-312-544-2002