Lear(US:LEA)2024-10-24 11:05Financial Performance - Revenue for Q3 2024 was $5.6 billion, a decrease of 3% compared to $5.8 billion in Q3 2023[2] - Net income increased to $136 million, up 2% from $133 million in Q3 2023[2] - Adjusted earnings per share grew by 1% year-over-year to $2.89, compared to $2.87 in Q3 2023[2] - Net sales for the three months ended September 28, 2024, were $5,584.4 million, a decrease of 3.4% compared to $5,781.0 million for the same period in 2023[22] - Consolidated net income for the three months ended September 28, 2024, was $156.0 million, up from $152.1 million in the prior year, representing a 2.6% increase[22] - Diluted net income per share attributable to Lear increased to $2.41 for the three months ended September 28, 2024, compared to $2.25 in the same period last year, reflecting a 7.1% growth[22] - For the nine months ended September 28, 2024, net sales totaled $17,591.4 million, a slight decrease of 0.2% from $17,625.7 million in the prior year[24] - Consolidated net income for the nine months ended September 28, 2024, was $477.3 million, down from $502.7 million in the previous year, indicating a decline of 5.0%[24] - Total net sales for the nine months ended September 28, 2024, were $17,591.4 million, a slight decrease from $17,625.7 million for the same period in 2023, representing a decline of 0.2%[32] Cash Flow and Assets - Free cash flow was $51 million, significantly lower than $251 million in Q3 2023[2] - Free cash flow for the three months ended September 28, 2024, was $50.5 million, significantly lower than $250.6 million for the same period in 2023[28] - Free cash flow for the nine months ended September 28, 2024, was $72.7 million, down from $261.7 million in the same period of 2023, indicating a decrease of 72.2%[32] - Total assets as of September 28, 2024, increased to $14,818.1 million from $14,695.5 million at the end of 2023, marking a growth of 0.8%[26] Segment Performance - Lear outperformed industry volume by 3 percentage points globally, with 5 percentage points in E-Systems and 3 percentage points in Seating[2] - Seating segment net sales for the nine months ended September 28, 2024, were $13,036.4 million, a decrease from $13,206.0 million in the same period of 2023, representing a decline of 1.3%[36] - E-Systems segment net sales for the nine months ended September 28, 2024, increased to $4,555.0 million from $4,419.7 million in the same period of 2023, marking an increase of 3.1%[36] - Core operating earnings for the three months ended September 28, 2024, were $256.6 million, slightly down from $267.1 million in the same period last year, indicating a decrease of 4.0%[28] - Core operating earnings for the nine months ended September 28, 2024, were $838.4 million, compared to $832.3 million in the same period of 2023, showing a marginal increase of 0.7%[32] - Adjusted segment earnings for the Seating segment for the nine months ended September 28, 2024, were $858.5 million, down from $897.4 million in the same period of 2023, indicating a decrease of 4.3%[36] - Adjusted segment margins for the E-Systems segment improved to 5.1% for the nine months ended September 28, 2024, compared to 4.3% in the same period of 2023[36] Shareholder Actions - Lear repurchased $209 million of shares during the quarter, with a remaining authorization of approximately $1.2 billion[7] - Diluted net income per share available to Lear common stockholders for the nine months ended September 28, 2024, was $7.33, a slight decrease from $7.50 in the same period of 2023[34] Other Developments - The company launched the first ComfortFlexTM module with Volvo, combining heat, ventilation, and massage[2] - The full-year 2024 financial outlook estimates net sales between $22.95 billion and $23.15 billion[8] - Global vehicle production was down 5% year-over-year, impacting Lear's sales performance[5] - The company reported restructuring costs related to restructuring actions of $83.6 million for the nine months ended September 28, 2024, compared to $65.8 million in the same period of 2023, an increase of 27.5%[36]