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This auto seat supplier just formed a joint venture with Boeing to make airplane seats.

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This auto seat supplier just formed a joint venture with Boeing to make airplane seats.

Adient plc (ADNT)
From AlphaProfit Sector Investors’ Newsletter

Adient plc (ADNT) was spun off from Johnson Controls. Adient is a leading automotive seating supplier with a third of the global market share. It ended fiscal 2017 on a strong note beating analysts fourth quarter EPS forecasts by over 4%.

Adient’s ongoing restructuring plan to lower raw material & overhead costs and close parts of its auto interiors business should help to widen operating margin. It seeks to grow non-auto seating (e.g., aircraft) revenue to $1 billion by 2021.

Its shares interest patient growth-at-a-reasonable-price investors. They trade at 7.6Xforward EPS versus prospects for 10% EPS growth in fiscal 2018. (Next earnings: Early Feb. 2018)

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Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, December 2017