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Lear(LEA) - 2024 Q1 - Quarterly Results
LEALear(LEA)2024-04-30 11:01
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Financial Performance - Lear Corporation reported record revenue of 6.0billionforQ12024,a36.0 billion for Q1 2024, a 3% increase from 5.8 billion in Q1 2023[4] - Net income for Q1 2024 was 110million,withadjustednetincomeat110 million, with adjusted net income at 183 million, compared to 144millionand144 million and 166 million in Q1 2023, respectively[4] - Adjusted earnings per share increased by 14% to 3.18inQ12024,upfrom3.18 in Q1 2024, up from 2.78 in the same period last year[4] - Core operating earnings rose 6% to 280million,representing4.7280 million, representing 4.7% of sales, compared to 4.5% of sales in Q1 2023[7] - Total net sales for the three months ended March 30, 2024, reached 5,994.6 million, an increase of 2.5% compared to 5,845.5millionforthesameperiodin2023[29]−NorthAmericanetsalesincreasedto5,845.5 million for the same period in 2023[29] - North America net sales increased to 2,475.9 million, up 4.0% from 2,380.0millionyear−over−year[29]−AdjustednetincomeforthethreemonthsendedMarch30,2024,was2,380.0 million year-over-year[29] - Adjusted net income for the three months ended March 30, 2024, was 183.2 million, compared to 165.8millioninthesameperiodof2023,reflectinganincreaseof10.4165.8 million in the same period of 2023, reflecting an increase of 10.4%[31] - Core operating earnings for the period were 279.8 million, compared to 263.4millioninthesamequarterof2023,representingagrowthof6.5263.4 million in the same quarter of 2023, representing a growth of 6.5%[29] - The company reported a diluted net income per share of 1.90 for the three months ended March 30, 2024, down from 2.41inthesameperiodof2023[31]CashFlowandLiquidity−CashandcashequivalentsattheendofQ12024were2.41 in the same period of 2023[31] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 2024 were 930 million, with total liquidity of 2.9billion[4]−FreecashflowforthethreemonthsendedMarch30,2024,was2.9 billion[4] - Free cash flow for the three months ended March 30, 2024, was (148.2) million, slightly worse than (147.4)millionintheprioryear[29]−Learincreaseditssharerepurchaseauthorizationto(147.4) million in the prior year[29] - Lear increased its share repurchase authorization to 1.5 billion, with 30millionrepurchasedinQ12024[10]BusinessDevelopments−ThecompanyannouncedtheacquisitionofWIPIndustrialAutomation,expectedtoclosebyQ32024,toenhanceautomationandAIcapabilities[4]−Learinitiatedvalidationworkforitsfirstcompleteseatmodule,settolaunchinNorthAmericain2026,aspartofitsthermalcomfortstrategy[5]MarketConditions−Globalvehicleproductiondecreasedby130 million repurchased in Q1 2024[10] Business Developments - The company announced the acquisition of WIP Industrial Automation, expected to close by Q3 2024, to enhance automation and AI capabilities[4] - Lear initiated validation work for its first complete seat module, set to launch in North America in 2026, as part of its thermal comfort strategy[5] Market Conditions - Global vehicle production decreased by 1% year-over-year, with Lear's sales-weighted basis remaining flat[6] Segment Performance - Seating segment net sales were 4,477.6 million, with adjusted segment earnings of 294.9million,downfrom294.9 million, down from 300.4 million in the previous year[33] - E-Systems segment net sales increased to 1,517.0million,withadjustedsegmentearningsrisingto1,517.0 million, with adjusted segment earnings rising to 77.1 million from 48.9millionyear−over−year[33]BalanceSheet−Totalassetsincreasedto48.9 million year-over-year[33] Balance Sheet - Total assets increased to 14,872.0 million as of March 30, 2024, compared to 14,695.5millionattheendof2023[26]−Totalliabilitiesdecreasedslightlyto14,695.5 million at the end of 2023[26] - Total liabilities decreased slightly to 9,885.8 million as of March 30, 2024, from 9,634.9millionattheendof2023[26]FinancialOutlook−Thefinancialoutlookfor2024includesnetsalesprojectedbetween9,634.9 million at the end of 2023[26] Financial Outlook - The financial outlook for 2024 includes net sales projected between 24 billion and $24.6 billion[12]