Garrett Motion Q3: Sales Plummet 14% Amid Weak Vehicle Demand, Cuts FY24 Topline Forecast

Garrett Motion Inc. (NASDAQ:GTX) shares are trading lower after the company reported worse-than-expected third-quarter results and reduced its FY24 net sales guidance.

Sales declined 14% (reported and constant currency basis) year-over-year to $826 million, missing the consensus of $851 million.

The decline was primarily due to weaker light vehicle sales caused by industry softness in Europe and China, competitive pressures on global OEMs, and short-term impacts from the customer vehicle platform mix.

Net sales were also affected by pricing, net of inflation pass-through, and commodity deflation.

Gross profit was $166 million, compared to $176 million last year, with a gross profit margin of 20.1% versus 18.3% a year ago.

Adjusted EBITDA declined to $144 million from $152 million on lower volumes, the impact of commodity deflation on pricing after accounting for inflation pass-through, and unfavorable foreign ...