Decline in auto production affects Lear’s Q1 results
Published: 15 May, 2019
The U.S. headquartered automotive seating, electrical and electronic systems supplier has posted total sales of US$5.2 billion in the first quarter of 2019, compared with US$5.7 billion in the same quarter of the previous year. Lear’s net income in the first quarter of 2019 amounted to US$229 million and adjusted net income US$253 million, against US$354 million and US$345 million, respectively, in the prior year. Core operating earnings were US$378 million in the period, down from US$491 million in the first quarter of 2018. Earnings per share were US$3.73 and adjusted earnings per share US$4, compared with US$5.16 and US$5.10, respectively, a year ago. North America net sales in the quarter decreased 8.7% to US$1.88 billion, while sales in Europe and Africa fell 11.1% to US$2.17 billion.
"In the first quarter, Lear faced challenging macroeconomic conditions marked by significant declines in industry production. In addition, we experienced planned, yet significant, downtime, as our customers shut down their operations to change over to new models”, said Ray Scott, President and CEO, Lear. In the Seating segment, margins and adjusted margins were 6.4% and 7.6% of sales, respectively, while in the E-Systems segment, margins and adjusted margins were 10.3% and 11.3% of sales, respectively.
Lear says its full year 2019 financial outlook remains unchanged from the prior forecast, with net sales expected to reach between US$20.9 billion and US$21.7 billion.
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