SOUTHFIELD, Mich., Aug. 26, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, collected eight top-three finishes – more than twice as many as the next closest competitor – in the J.D. Power 2024 U.S. Seat Quality and Satisfaction Study℠. Lear was also the only company to sweep one of the study's seven vehicle segments, taking first, second and third place in the Premium Car category. The comprehensive industry analysis conducted by J.D. Power ...

Core Viewpoint - Lear Corporation has appointed Rod Lache, a former Wall Street automotive analyst, to its Board of Directors, effective August 12, 2024, enhancing the board's expertise in the automotive industry [1][2][3]. Group 1: Appointment Details - Rod Lache's appointment increases Lear's board size to 11 directors, reflecting the company's commitment to ensuring a diverse range of skills and experiences on its board [6]. - Lache has a distinguished background, having recently retired from Wolfe Research, LLC, where he served as Managing Director and Senior Analyst for six years, and previously spent 24 years at Deutsche Bank [3][4]. Group 2: Expertise and Contributions - Lache is recognized as a top automotive industry analyst in the U.S., known for his innovative research on strategic, competitive, and technological themes, including the rise of electrified vehicles and AI in the automotive sector [4]. - His induction into the Institutional Investor Magazine Hall of Fame in 2021 highlights his significant contributions to the field [4]. Group 3: Vision for the Company - Lache expressed confidence in Lear's operational excellence and its potential for design innovation and automation to enhance competitive advantage [5]. - He aims to contribute to shareholder value creation during transformative times for the automotive industry [5]. Group 4: Company Overview - Lear Corporation is a global leader in automotive technology, specializing in Seating and E-Systems, and is committed to innovation, operational excellence, and sustainability [7]. - The company serves every major automaker worldwide and ranks 174 on the Fortune 500 [7].

Investment Rating - The report does not explicitly mention an investment rating for Lear Corporation (LEA) [1][2][3] Core Views - Lear Corporation's Q2 2024 revenue was $6 billion, showing a slight year-over-year increase, with overall revenue growth outperforming the market by approximately 3 percentage points (PP) [2][8] - The company's core operating EBIT remained flat at $302 million compared to the same period last year, while adjusted EPS increased by 8% to $3.6 [9] - Free cash flow for Q2 2024 was $170 million, up 8% year-over-year, while operating cash flow decreased by 6% to $291 million [10] - The company expects full-year 2024 revenue to be between $23.2 billion and $23.7 billion, with core operating earnings projected at $1.03 billion to $1.2 billion and adjusted EBITDA between $1.7 billion and $1.8 billion [17] Financial Performance Revenue - Q2 2024 revenue was $6 billion, with electronic systems revenue growing 2% year-over-year to $1.6 billion and seating revenue flat at $4.4 billion [8][11][13] - North America revenue growth outperformed the market by 1 PP, Europe by 7 PP, while China lagged behind the market by 5 PP [2][16] Profitability - Core operating EBIT was $302 million, flat year-over-year, with adjusted EPS at $3.6, up 8% [9] - Seating business adjusted earnings were $302 million, down 6%, with an adjusted operating margin of 6.8% [11] - Electronic systems business adjusted earnings were $82 million, up 30%, with an adjusted operating margin of 5.3%, up from 4.1% in the same period last year [13] Cash Flow - Free cash flow was $170 million, up 8% year-over-year, while operating cash flow was $291 million, down 6% [10] - The company repurchased $60 million worth of shares and paid $44.7 million in dividends during Q2 2024 [10] Business Segments Seating Business - Q2 2024 seating revenue was $4.4 billion, flat year-over-year, with adjusted earnings of $302 million, down 6% [11] - The company is advancing its thermal comfort solutions, including the ComfortFlex modular seating and ComfortMax seating products, with plans to supply these to Volvo, Lucid, and a European OEM [11][12] - The company expects seating thermal comfort revenue to exceed $1 billion by 2027 [12] Electronic Systems Business - Q2 2024 electronic systems revenue was $1.6 billion, up 2% year-over-year, with adjusted earnings of $82 million, up 30% [13] - The business achieved its eighth consecutive quarter of year-over-year margin growth, securing orders from Volvo, Geely, and potential orders from Volkswagen and Audi [13] - The acquisition of WIP, an industrial automation company, was completed on July 17, 2024, to accelerate the company's global industrial automation plan [13] Regional Performance - Global automotive production in Q2 2024 was 21.8 million units, down 1% year-over-year, with North America up 2%, Europe and Africa down 6%, and China up 5% [15] - North America revenue growth outperformed the market by 1 PP, Europe by 7 PP, while China lagged behind the market by 5 PP [16] Guidance - Full-year 2024 revenue is expected to be between $23.2 billion and $23.7 billion, with core operating earnings projected at $1.03 billion to $1.2 billion and adjusted EBITDA between $1.7 billion and $1.8 billion [17] - H2 2024 seating revenue is expected to be $8.5 billion, with core operating earnings of $533 million [18] - H2 2024 electronic systems revenue is expected to be $3 billion, with core operating earnings of $166 million [19] Customer Development - The company has a strong presence in China, with two-thirds of its orders in the past three years coming from local Chinese automakers, including BYD and Geely [14] - The company expects to supply approximately 30% of BYD's seating needs in the coming years [14] Automation and Efficiency - The company is focusing on automation to improve efficiency and reduce labor costs, with recent acquisitions like WIP contributing to this strategy [13][30] - The company expects to see significant cost savings and margin improvements from its automation initiatives in the coming years [24][30] Market Trends - The company is navigating the transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs), with EV platform sales declines impacting revenue [21][22] - The company expects to outperform the market in both seating and electronic systems businesses, with seating expected to grow 4% and electronic systems 6% over the next five years [23][24]

While analyzing LEA's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor. During the quarter, South America contributed $213.9 million in revenue, making up 3.6% of the total revenue. When compared to the consensus estimate of $221.51 million, this meant a surprise of -3.44%. Looking back, South America contributed $205.2 million, or 3.4%, in the previous quarter, and $227.8 million, or 3.8%, in the sa ...

"Through hundreds of efficiency projects and the increased use of renewable energy at our operations around the world, we are pleased to report that Lear is making progress toward our climate goals," said Ray Scott, Lear President and CEO. "In addition, major automakers are adopting our sustainable product innovations, which are designed to reduce environmental impact, lower carbon emissions and use recycled and recyclable content to support a global circular economy." Environmental Stewardship Sustainable ...

Lear Corp. (LEA) reported second-quarter 2024 adjusted earnings per share of $3.60, which increased from $3.33 recorded in the year-ago quarter and beat the Zacks Consensus Estimate of $3.34. In the reported quarter, revenues increased 0.2% year over year to $6.01 billion and surpassed the Zacks Consensus Estimate of $6 billion. Sales of the E-Systems segment were $1.57 billion, rising 2.2% year over and beating the Zacks Consensus Estimate of $1.55 billion. Adjusted segmental earnings amounted to $82.2 mil ...

Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in ora ...

Financial Data and Key Metrics Changes - The company generated record quarterly revenue of over $6 billion in Q2 2024, reflecting a modest increase compared to the previous year [15][20] - Core operating earnings remained flat at $302 million, while adjusted earnings per share increased by 8% to $3.60, driven by higher adjusted net income and share repurchase benefits [20][28] - Operating cash flow was $291 million, and free cash flow was $170 million, marking an 8% increase compared to last year [20][53] Business Line Data and Key Metrics Changes - In the E-Systems segment, sales reached $1.6 billion, a 2% increase from 2023, with adjusted earnings improving to $82 million, reflecting strong net operating performance [54] - The Seating segment reported sales of $4.4 billion, flat compared to 2023, with adjusted earnings down 6% to $302 million due to lower production on key Lear platforms [29][30] - The company continues to see strong demand for innovative thermal comfort solutions in Seating, with a focus on new product launches [21][36] Market Data and Key Metrics Changes - Global vehicle production decreased by 1% year-over-year, with North America production up 2% and China up 5%, while Europe saw a 6% decline [26] - The company outperformed industry production in North America by 1 percentage point, driven by new business on the General Motors Ultium platform [27] - In China, revenue growth lagged the market by 5 percentage points, primarily due to lower volumes on Lear platforms, although new business with domestic automakers like BYD and Geely is expected to improve the customer mix [52][49] Company Strategy and Development Direction - The company is focused on negotiating agreements to ensure sustainable financial returns and has increased its restructuring cost outlook to $150 million to improve manufacturing capacity utilization [31][56] - The acquisition of WIP Industrial Automation is expected to enhance automation and AI capabilities, further strengthening the company's position as an advanced manufacturing integrator [46][37] - The company aims to meet or exceed its total revenue target of $1 billion from thermal comfort by 2027, leveraging its innovative product offerings [22][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainty due to lower volumes on electric vehicle platforms but remains confident in long-term growth driven by strong backlogs and market share gains [72][86] - The company expects to reduce headcount in both Seating and E-Systems by approximately 8% and 6%, respectively, to drive savings and improve efficiency [57][58] - Management highlighted that the financial return profile with Chinese domestic customers aligns with segment averages, indicating continued growth potential in that market [50][49] Other Important Information - The company repurchased $60 million worth of stock in Q2 2024 and has a target of $325 million for the year, which will help accelerate earnings per share growth [34][59] - The company has seen a significant increase in its non-consolidated backlog, which rose by 70% to $650 million, positioning it well for future growth in Asia [49] Q&A Session Summary Question: What is the competitive landscape for BYD's seating suppliers? - The company has a significant share of BYD's seating supply, with expectations to produce about 30% of their seats in the coming years, while also maintaining a strong presence in emerging markets [40][73] Question: How does the company view the impact of recent production cuts by OEMs? - Management indicated that the revenue guidance adjustment is largely driven by lower volumes on electric vehicle platforms, with expectations of continued adjustments based on industry demand [64][72] Question: What is the outlook for seating margins moving forward? - The company is focused on improving seating margins through operational efficiencies and expects to see a gradual recovery in margins as restructuring actions take effect [82][90] Question: How is the company addressing the impact of the UAW strike? - Management confirmed that the costs associated with the UAW contract are reflected in their guidance, and they are closely monitoring the situation [101][94] Question: What is the expected impact of automation on future margins? - The acquisition of WIP Industrial Automation is expected to enhance operational efficiencies, potentially leading to higher margins in the long term [112][113]

Lear (LEA) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.34 per share. This compares to earnings of $3.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.78%. A quarter ago, it was expected that this automotive seating and electrical distribution systems company would post earnings of $3.04 per share when it actually produced earnings of $3.18, delivering a surprise of 4.61% ...

Tim Brumbaugh (248) 447-1329 FOR IMMEDIATE RELEASE Lear Contacts: Marianne Vidershain (248) 447-5541 "In the second quarter, Lear grew sales to a record level and improved year-over-year margins in E- Systems for the eighth consecutive quarter," said Ray Scott, Lear's President and Chief Executive Officer. "We are executing our thermal comfort strategy, and, today, we are introducing ComfortFlex by Lear™ modular designs and the ComfortMax Seat by Lear™ technology. Our ComfortFlex by Lear™ solutions are high ...