Lear Reports Third Quarter 2024 Results

Core Insights - Lear Corporation reported third quarter 2024 revenue of $5.6 billion, a decrease from $5.8 billion in the same quarter of 2023, reflecting a year-over-year decline of 3% [2][4] - The company achieved a net income of $136 million and adjusted net income of $163 million, compared to $133 million and $170 million in the third quarter of 2023, respectively [2][4] - Earnings per share were $2.41, with adjusted earnings per share at $2.89, showing growth from $2.25 and $2.87 in the prior year [2][5] Financial Performance - Core operating earnings for the quarter were $257 million, down from $267 million in the same period last year, maintaining a margin of 4.6% of sales [4][5] - Net cash provided by operating activities was $183 million, with free cash flow of $51 million, significantly lower than $404 million and $251 million in the third quarter of 2023 [2][5] - The company repurchased $209 million worth of shares and paid $43 million in dividends during the quarter [2][6] Market Position and Growth - Lear's revenue outperformed industry volume by 3 percentage points globally, with E-Systems and Seating segments outperforming by 5 and 3 percentage points, respectively [2][4] - Continued growth in China was noted, with new business awards from BYD, Xiaomi, Seres in Seating, and the Dongfeng Group in E-Systems [2][4] - The launch of the ComfortFlexTM module, which combines heat, ventilation, and massage, was highlighted as a significant innovation [2][4] Awards and Recognition - Lear received eight top-three finishes in the J.D. Power 2024 U.S. Seat Quality and Satisfaction Study, including a sweep in the Premium Car category [2][4] - The company was named a finalist for the 2025 Automotive News PACE Award for its Zone Control Module featuring a highly configurable software solution [2][4] Financial Outlook - The financial outlook for 2024 anticipates net sales between $22.95 billion and $23.15 billion, with core operating earnings projected between $1.04 billion and $1.09 billion [7][8] - Adjusted EBITDA is expected to range from $1.67 billion to $1.72 billion, with free cash flow projected between $535 million and $585 million [7][8]