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Jun 30, 2020
Garrett Motion Q2 2020 Earnings Report
Garrett Motion's financial performance declined due to the impact of the COVID-19 pandemic, but cost control measures and operational flexibility helped mitigate some of the negative effects.
Key Takeaways
Garrett Motion reported a decrease in net sales by 40.5% to $477 million, with a net loss of $9 million, or ($0.12) per share. Adjusted EBITDA decreased to $63 million, representing a 13.2% margin. The company faced challenges due to COVID-19, including manufacturing shutdowns and reduced demand, but implemented cost controls and adapted its operations.
Net sales decreased by 40.5% to $477 million, or 39.2% at constant currency.
Net loss totaled $9 million, or ($0.12) per basic and diluted share.
Adjusted EBITDA decreased to $63 million, with an Adjusted EBITDA margin of 13.2%.
Adjusted free cash flow totaled ($174) million.
Garrett Motion
Garrett Motion
Forward Guidance
Garrett anticipates a challenging demand environment extending into 2021, which could further challenge our capital structure and limit our ability to expand on our strategy now and in the future.
Challenges Ahead
- Lower production levels
- Plant shutdowns
- Challenging demand environment extending into 2021
- Capital structure challenges
- Limited ability to expand strategy