Steve Wybo: Assessing Adient’s future – Crain’s Detroit Business
Steve Wybo was featured in Crain’s Detroit Business‘ article titled “Assessing Adient’s future.”
“Wall Street typically rewards spinoffs — that’s what statistics tell you. They typically outperform the major indexes,” said Steven Wybo, senior managing director of Birmingham-based financial adviser Conway MacKenzie Inc. “The optimism is now gone and it’s all about, ‘Well, how ya doing?,’ and the numbers Adient reported are not good.”
Wybo, whose firm specializes in operational restructurings and turnarounds, said poor performance in Adient’s case can likely be pinned on two factors: poor management and a difficult industry segment. Margins are thin in the seat supply business, and it’s tougher to make money than in other supply areas, he said.
“(Adient) needs to lean out and run more efficiently, and I believe it will do that and be a successful company long-term,” Wybo said. “Revenues have grown; now it’s time to focus on profits. I suspect the new full-time person will be driving free cash flow and enterprise value by focusing on profits.”