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SOUTHFIELD, Mich., Aug. 29, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, will participate in a fireside chat on September 11, 2024, at the Morgan Stanley 12th Annual Laguna Conference in Dana Point, California. Representing Lear will be: Jason Cardew, SVP and Chief Financial Officer Frank Orsini, EVP and President, Seating Lear's webcast will begin at 5:00 PM EDT (2:00 PM PDT) and will run approximately 30 minutes. The webcast link will b ...

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]

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 ...

Group 1: Acquisition Details - Lear Corporation has completed the acquisition of WIP Industrial Automation, a supplier for 25 years, which specializes in advanced automation technologies [3][6] - The acquisition is expected to enhance Lear's capabilities in safety and quality in manufacturing, improving operational efficiency and addressing macroeconomic challenges [6][9] Group 2: Financial Outlook - Lear anticipates full-year net sales between $24 billion and $24.6 billion, an increase from $23.5 billion in 2023, with core operating earnings projected between $1.15 billion and $1.30 billion, up from $1.12 billion in 2023 [7]

SOUTHFIELD, Mich., June 26, 2024 /PRNewswire/ -- Lear Corporation will hold a conference call to review the company's second quarter 2024 financial results and related matters on July 25, 2024, at 9:00 a.m. EDT. To participate in the conference call: Webcast link: click here Toll-free calls: 877-883-0383 International calls: 412-902-6506 The conference code is 4935995. You also may listen to the live audio webcast of the call, in listen-only mode, on Lear's Investor Relations website at ir.lear.com. The web ...

SOUTHFIELD, Mich., May 30, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, will participate in a fireside chat on June 11, 2024, at the Deutsche Bank Global Auto Industry Conference in New York. Representing Lear will be: Ray Scott, President and CEO Jason Cardew, SVP and Chief Financial Officer Lear's webcast will begin at 9:00am EDT and will run approximately 35 minutes. The webcast link will be available on the Company's website at ir.lea ...