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EMEA Net sales decreased during the second quarter of fiscal 2022 by $418 million primarily as a result of operational interruptions due to certain unplanned production stoppages resulting from semiconductor chip shortages and other supply chain disruptions Adient plc | Form 10-Q | 41 which have been intensified by the Russia/Ukraine conflict ($273 million), the unfavorable impact of foreign currency ($109 million), unfavorable impact of commercial settlements and net pricing adjustments ($25 million), and the impact of operational footprint changes ($35 million), partially offset by the favorable impact of material economics recoveries ($24 million).
Net sales decreased during the first six months of fiscal 2022 by $792 million primarily as a result of operational interruptions due to certain unplanned production stoppages resulting from semiconductor chip shortages and other supply chain disruptions which have been intensified by the Russia/Ukraine conflict ($580 million), the unfavorable impact of foreign currency ($167 million), unfavorable impact of commercial settlements and net pricing adjustments ($8 million), and the impact of operational footprint changes ($78 million), partially offset by the favorable impact of material economics recoveries ($41 million).
Income Attributable to Noncontrolling Interests The decreases in income attributable to noncontrolling interests in the second quarter ($4 million) and the first six months of fiscal 2022 ($3 million) as compared to the second quarter and first six months of fiscal 2021, are primarily attributable to lower income resulting from lower volumes due to production stoppages and supply chain issues at certain Seating affiliates in various jurisdictions.
Adient currently estimates that upon completion of the restructuring actions, the fiscal 2022 restructuring plan will reduce annual operating costs by approximately $11 million, which is primarily the result of lower costs of sales and selling, general and administrative expenses due to reduced employee-related costs, of which approximately 25% will result in net savings.
Adient currently estimates that upon completion of the restructuring actions, the fiscal 2021 restructuring plan will reduce annual operating costs by approximately $23 million, which is primarily the result of lower costs of sales and selling, general and administrative expenses due to reduced employee-related Adient plc | Form 10-Q | 45 costs, of which approximately 20%-30% will result in net savings.
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Ticker: ADNT
CIK: 1670541
Form Type: 10-Q Quarterly Report
Accession Number: 0001670541-22-000040
Submitted to the SEC: Thu May 05 2022 6:41:22 PM EST
Accepted by the SEC: Fri May 06 2022
Period: Thursday, March 31, 2022
Industry: Motor Vehicle Parts And Accessories