Lear(US:LEA)2024-04-30 11:01Financial Performance - Lear Corporation reported record revenue of $6.0 billion for Q1 2024, a 3% increase from $5.8 billion in Q1 2023[4] - Net income for Q1 2024 was $110 million, with adjusted net income at $183 million, compared to $144 million and $166 million in Q1 2023, respectively[4] - Adjusted earnings per share increased by 14% to $3.18 in Q1 2024, up from $2.78 in the same period last year[4] - Core operating earnings rose 6% to $280 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 $5,845.5 million for the same period in 2023[29] - North America net sales increased to $2,475.9 million, up 4.0% from $2,380.0 million year-over-year[29] - Adjusted net income for the three months ended March 30, 2024, was $183.2 million, compared to $165.8 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 $263.4 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 $2.41 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 $2.9 billion[4] - Free cash flow for the three months ended March 30, 2024, was $(148.2) million, slightly worse than $(147.4) million in the prior year[29] - Lear increased its share repurchase authorization to $1.5 billion, with $30 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 $294.9 million, down from $300.4 million in the previous year[33] - E-Systems segment net sales increased to $1,517.0 million, with adjusted segment earnings rising to $77.1 million from $48.9 million year-over-year[33] Balance Sheet - Total assets increased to $14,872.0 million as of March 30, 2024, compared to $14,695.5 million at the end of 2023[26] - Total liabilities decreased slightly to $9,885.8 million as of March 30, 2024, from $9,634.9 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]