Commission welcomes agreement on the modernisation of EU export controls

Commission welcomes agreement on the modernisation of EU export controls

Adient announces date change for Q4 fiscal 2020 earnings release and conference call; provides preliminary Q4 fiscal 2020 results

Adient (NYSE: ADNT), a global leader in automotive seating, today announced that it is changing its earnings release and conference call date for the fourth quarter fiscal 2020 as a result of a delay in reporting at one of its unconsolidated joint ventures in China, impacting the company’s ability to complete its financial statements.  Adient now plans to release financial results from the fourth quarter fiscal 2020 on Monday, Nov. 30, 2020, prior to the market open.

On a preliminary basis, based on the information currently available, Adient expects:

•             Q4FY20 revenue of approximately USD 3.6 billion, slightly higher compared with previously issued guidance of between USD 3.3 billion to USD 3.5 billion

•             Q4FY20 Adj. EBITDA excluding equity income of approximately USD 200 million, significantly higher compared with previously issued guidance of between USD 130 million to USD 140 million

•             Q4FY20 free cash flow of approximately USD 450 million (comprised and defined as operating cash flow of approximately USD 520 million less capital expenditures of approximately USD 70 million), higher compared with previously issued guidance of between USD 300 million to USD 400 million

•             Cash and cash equivalents of approximately USD 1.7 billion at Sept. 30, 2020; total liquidity of ~USD 2.5 billion (comprised of cash on hand of ~USD 1.7 billion and USD 800 million of undrawn capacity under the company’s revolving line of credit)

•             Gross debt and net debt of approximately USD 4.3 billion and USD 2.6 billion, respectively; Adient voluntarily began to repay a portion of its debt in Q4FY20 (USD 103.5 million in principal using ~USD 100 million in cash)

The financial information contained in this press release is preliminary and subject to change based on the completion of Adient’s financial statements for the quarter and fiscal year ended Sept. 30, 2020. 

Adient (NYSE: ADNT) is a global leader in automotive seating.  With approximately 77,000 employees in 32 countries, Adient operates 202 manufacturing/assembly plants worldwide. We produce and deliver automotive seating for 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 to engineering and manufacturing — and into more than 23 million vehicles every year.

www.adient.com

Vans owner VF Corp to buy streetwear brand Supreme for about USD 2.1 billion

By guest authors Aishwarya Venugopal, Melissa Fares from Reuters.

Reporting by Aishwarya Venugopal in Bengaluru and Melissa Fares in New York; Additional reporting by Tom Bergin in London; Editing by Maju Samuel and Bernadette Baum

VF Corp VFC.N said on November 9, 2020, it would pay USD 2.1 billion to buy streetwear apparel company Supreme, adding another popular brand to the Vans shoe maker’s roster would make an additional payment of up to USD 300 million, subject to satisfaction of certain post-deal closing milestones.

Shares of VF Corp surged about 13 % to USD 78.94 in afternoon trading of Nov. 9.

It said current investors Carlyle Group and New York-based private equity firm Goode Partners were selling their stakes in Supreme, founded by American-British businessman James Jebbia in 1994.

Known for its red box logo with “Supreme” written in white, the brand has gained a following among “hypebeasts,” or fans of the streetwear style, with product launches of everything from hoodies to burner phones selling out in minutes and people lining up outside its 12 stores worldwide for hours.

Perceived scarcity has helped Supreme to acquire a cachet among young people and allowed it to charge far higher prices than other streetwear brands like VF’s Vans and Nike.

“This scarcity, novelty and strong social influence model supports meaningful pricing power resulting best in class profitability,” VF Corp Chief Executive Steve Rendle said.

VF Corp estimated the broader streetwear market to be a roughly USD 50 billion global opportunity and that Supreme was at the epicenter of this market, he said.

VF Corp executive said its deal with Supreme will help bolster its e-commerce business, which has become more urgent for apparel and footwear makers due to the COVID-19 pandemic.

Supreme, which has collaborated with many prominent fashion names including Louis Vuitton as well as Nike, Levi and Vans, gets over 60% of its revenue from the online business.

The deal, which is expected to be completed late in 2020, is anticipated to contribute at least $500 million of revenue and adjusted earnings per share of 20 cents in fiscal 2022.

Supreme does not provide group sales or profit figures but its UK-based European arm is obliged to publish annual accounts and these have showed rapid growth and industry-leading margins in recent years.

In the year to the end of January 2019, Supreme’s European business racked up revenue of 100 million pounds ($130 million) despite having just two stores and a profit margin, before interest expenses, of 44 % – a multiple of the margins earned by other streetwear brands like Vans, Abercrombie & Fitch or even luxury brands like Gucci, company filings show.

Analysts have wondered whether Supreme will be able to maintain its premium pricing as its products become more ubiquitous, but were more sanguine after Monday’s announcement.

“Supreme is a strong streetwear brand …. and while the brand has built its appeal on scarcity, we believe the market will be excited at the margin and growth profile and its contribution to VFC,” Bernstein analyst Jaime Merriman said.

A shopper with a bag full of purchases walks past ticketed shoppers waiting on the sidewalk outside the Supreme clothing store on Fairfax in Los Angeles, California, October 31, 2019. Picture taken October 31, 2019. REUTERS/Mike Blake

www.vfc.com

https://www.streetwearofficial.com/

Circular Plastics Alliance: A step closer to 10 million tonnes of recycled plastics 

Today, the Circular Plastics Alliance (CPA), which gathers 245 public and private actors covering the whole plastics value chains, has delivered its first actions. Those delivered actions pursue the Alliance’s objective: to reach the target of 10 million tonnes of recycled plastics used in products by 2025.

They include a work plan on design-for-recycling of plastic products, which lists 19 plastic products that the Alliance will make more recyclable; a report on collected and sorted plastic waste in the EU, presenting the current state of play; and an R&D agenda for circular plastics. Commissioner for Internal Market, Thierry Breton, said: “We need concerted action by all actors along the value chain to deliver the circular economy for plastics.

Despite the impact of coronavirus in particular on plastics recyclers and plastics converters, the business case remains clear. I welcome the commitment and great work done by the Circular Plastics Alliance to achieve the 10 million tonnes target.” As a next step, in January 2021, the CPA will deliver three more actions, including a monitoring system to track the plastics materials flows in Europe; a report on the untapped potential for more collection, sorting and recycling of plastic waste and the necessary improvements to reach the 10 million tonnes target; and a mapping of the related investment needs.

The European Commission announced the launch of the Circular Plastics Alliance in December 2018. The launch followed the preliminary assessment of industry voluntary pledges for more recycled plastics. It showed that pledges from suppliers of recycled plastics were sufficient to reach and even exceed the EU target of 10 million tonnes of recycled plastics used in Europe by 2025. However, pledges received from users of recycled plastics (such as plastics converters and manufacturers) were not sufficient, and action was necessary to bridge the gap between the supply and demand.

For more information see here

www.ec.europa.eu