Garrett Motion Clocks 14% Sales Decline In Q4; Bottom-Line Exceeds Expectation

Garrett Motion Inc GTX reported a fourth-quarter sales decline of 14% year-over-year to $862 million, -13% on a constant currency basis, missing the consensus of $863 million.
The decrease in net sales was driven by global semiconductor shortage sales across all product lines, mainly in passenger vehicles.
EPS was $0.29, compared to $0.34 in 4Q20, beating the consensus of $0.19.
The gross margin expanded by 72 bps to 18%. Adjusted EBITDA was $129 million (-13.4% Y/Y), and margin expanded by 20 bps to 15%.
Garrett Motion's cash used for operating activities totaled $310 million in FY21, compared to cash generated $25 million a year ago. Adjusted Free cash flow was $367 million. Adjusted free cash flow conversion rate was 111%.
FY22 Outlook: Garrett Motion expects net sales of $3.7 billion - $4 billion versus a consensus of $3.89 billion, Net income of $295 million - $340 million, and Adjusted EBITDA of $590 million - $650 million.
It expects net cash provided by operating activities of $485 million - $585 million and Adjusted free cash flow of $400 million - $500 million.
Price Action: GTX shares are trading higher by 0.70% at $7.22 during the premarket session on Monday.

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