SOUTHFIELD, Mich.,
July 25,
2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a
global automotive technology leader in Seating and E-Systems,
today reported results for the second quarter 2024.
Second Quarter 2024 Highlights
- Delivered record quarterly revenue of $6.0 billion in the second quarter, a modest
increase compared to the second quarter of 2023
- Total company growth over market of 3 percentage points, with 7
percentage points in E-Systems and 2 percentage points in
Seating
- Net income of $173 million and
adjusted net income of $206 million,
compared to $169 million and
$198 million, respectively, in the
second quarter of 2023
- Core operating earnings of $302
million, flat compared to the second quarter of 2023
- Earnings per share of $3.02 and
adjusted earnings per share of $3.60,
compared to $2.84 and $3.33, respectively, in the second quarter
of 2023
- Adjusted earnings per share increased 8% in the second quarter
compared to the same period last year
- Net cash provided by operating activities of $291 million and free cash flow of $170 million, compared to $311 million and $159
million, respectively, in the second quarter of 2023
- Eighth consecutive quarter of year-over-year margin improvement
in E-Systems
- Released 2023 Sustainability Report, which highlights progress
on climate goals, sustainable product development, and diversity,
equity and inclusion initiatives
- Completed the acquisition of WIP Industrial Automation to
further strengthen our automation and artificial intelligence
capabilities
- Introducing ComfortFlex by Lear™ modular designs and the
ComfortMax Seat by Lear™ technology for Lear's thermal comfort
products
- New JIT seat award with Geely Zeekr, continuing growth with
Chinese domestic automotive manufacturers
- Awarded the low voltage wiring for the Volvo EX30 in
Europe
- Smart junction box award for several Volkswagen/Audi
vehicles
- Cash and cash equivalents at quarter end of $950 million and total liquidity of $3.0 billion
- Repurchased $60 million of Lear
shares and paid $44 million in
dividends
"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
highly efficient designs of our thermal comfort products, which
improve performance through enhanced modularity and advanced
manufacturing processes. The ComfortMax Seat by Lear™ builds on
ComfortFlex by Lear™ by leveraging our leadership in vertical
integration to deliver the most efficient, feature-packed complete
seat in the industry. We continue to focus our efforts on
developing innovative products and utilizing automation to extend
our leadership position in operational excellence. I am confident
that the actions we are taking will support continued growth in
earnings, strong cash flow and significant shareholder
returns."
Second Quarter Financial Results
(in millions, except
per share amounts)
|
2024
|
|
2023
|
|
Reported
|
|
|
|
|
Sales
|
$6,012.4
|
|
$5,999.2
|
|
Net income
|
$173.1
|
|
$168.7
|
|
Earnings per
share
|
$3.02
|
|
$2.84
|
|
|
|
|
|
Adjusted(1)
|
|
|
|
|
Core operating
earnings
|
$302.0
|
|
$301.8
|
|
Adjusted net
income
|
$205.8
|
|
$197.9
|
|
Adjusted earnings per
share
|
$3.60
|
|
$3.33
|
In the second quarter, global vehicle production was down 1%
compared to a year ago, with North
America up 2%, Europe down
6% and China up 5%. Global vehicle
production was down 1% on a Lear sales-weighted
basis(2).
Sales in the second quarter were $6.0
billion, representing a modest year-over-year increase
compared to a year ago. Excluding the impact of commodities,
foreign exchange and acquisitions, sales were up 2%, reflecting the
addition of new business in both of our business segments, offset
by lower production on key Lear platforms.
Core operating earnings were $302 million, or 5.0% of
sales, in both 2024 and 2023. The flat earnings resulted
primarily from positive operating performance and the addition of
new business, offset by lower production on key Lear platforms and
the impact of foreign exchange. In the Seating segment, margins and
adjusted margins were 6.2% and 6.8% of sales, respectively. In
the E-Systems segment, margins and adjusted margins were 4.4% and
5.3% of sales, respectively.
Earnings per share were $3.02.
Adjusted earnings per share were $3.60, up 8% compared to a year ago, primarily
reflecting the benefit of our share repurchase program.
In the second quarter of 2024, net cash from operating
activities was $291 million, and
free cash flow(1) was $170
million.
(1) For more information regarding our non-GAAP
financial measures, see "Non-GAAP Financial Information" below.
(2) The production change on a Lear sales-weighted
basis is calculated using Lear's prior year regional sales mix and
second quarter fiscal calendar. Management believes this provides a
more meaningful comparison of the Company's global revenue growth
relative to global vehicle production.
Share Repurchase Program
During the second quarter of
2024, Lear repurchased 477,932 shares of our common stock for a
total of $60 million. At the end of
the second quarter, we had a remaining share repurchase
authorization of approximately $1.4
billion, which reflects approximately 21% of our total
market capitalization at current market prices.
Since initiating the share repurchase program in 2011, we have
repurchased 56.2 million shares of our common stock for a total of
$5.3 billion at an average price of
$93.88 per share. This represents a
reduction of approximately 53% of our shares outstanding since the
time we began the program.
2024 Financial Outlook
Our 2024 financial outlook,
adjusted for the changes to our outlook for global production and
its impact on our business, is summarized below:
|
Full Year 2024 Financial
Outlook
|
|
|
|
|
Net Sales
|
$23,230 million -
$23,670 million
|
|
|
|
Core Operating
Earnings
|
$1,030 million -
$1,200 million
|
|
|
|
Adjusted
EBITDA
|
$1,670 million -
$1,840 million
|
|
|
|
Restructuring
Costs
|
≈$150
million
|
|
|
|
Operating Cash
Flow
|
$1,135 million -
$1,285 million
|
|
|
|
Capital
Spending
|
≈$650
million
|
|
|
|
Free Cash
Flow
|
$485 million - $635
million
|
|
|
The financial outlook is based on a full year average exchange
rate of $1.085/Euro and 7.20
RMB/$.
Certain of the forward-looking financial measures above are
provided on a non-GAAP basis. The Company does not provide a
reconciliation of such forward-looking measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP because to do so would be potentially
misleading and not practical given the difficulty of projecting
event-driven transactional and other non-core operating items in
any future period. The magnitude of these items, however, may be
significant.
Second Quarter 2024 Conference Call and Webcast
Information
A conference call and webcast will be held to
discuss Lear's second quarter 2024 financial results and related
matters on July 25, 2024, at
9:00 a.m. EDT. The webcast link for
the conference call will be available through Lear's investor
relations webpage at ir.lear.com. In addition, the conference call
can be accessed by dialing 1-877-883-0383 (domestic) or
1-412-902-6506 (international) with Conference I.D. 4935995. The
webcast replay will be available two hours following the call.
Non-GAAP Financial Information
In addition to the
results reported in accordance with accounting principles generally
accepted in the United States
(GAAP) included throughout this press release, the Company has
provided information regarding "pretax income before equity income,
interest, other expense, restructuring costs and other special
items" (core operating earnings or adjusted segment earnings),
"pretax income before equity income, interest, other expense,
depreciation expense, amortization of intangible assets,
restructuring costs and other special items" (adjusted EBITDA),
"adjusted depreciation and amortization," "adjusted net income
attributable to Lear" (adjusted net income), "adjusted diluted net
income per share attributable to Lear" (adjusted earnings per
share) and "free cash flow" (each, a non-GAAP financial measure).
Other expense includes, among other things, non-income related
taxes, foreign exchange gains and losses, gains and losses related
to certain derivative instruments and hedging activities, gains and
losses on the disposal of fixed assets and the non-service cost
components of net periodic benefit cost. Adjusted depreciation and
amortization represents depreciation expense and amortization of
intangible assets adjusted for intangible asset impairment charges.
Adjusted net income and adjusted earnings per share represent net
income attributable to Lear and diluted net income per share
attributable to Lear, respectively, adjusted for restructuring
costs and other special items, including the tax effect thereon.
Free cash flow represents net cash provided by operating activities
less capital expenditures.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position and results of
operations. In particular, management believes that core operating
earnings, adjusted EBITDA, adjusted depreciation and amortization,
adjusted net income and adjusted earnings per share are useful
measures in assessing the Company's financial performance by
excluding certain items that are not indicative of the Company's
core operating performance or that may obscure trends useful in
evaluating the Company's continuing operating activities.
Management also believes that these measures provide improved
comparability between fiscal periods. Management believes that free
cash flow is useful to both management and investors in their
analysis of the Company's ability to service and repay its debt.
Further, management uses these non-GAAP financial measures for
planning and forecasting future periods.
Core operating earnings, adjusted EBITDA, adjusted depreciation
and amortization, adjusted net income, adjusted earnings per share
and free cash flow should not be considered in isolation or as a
substitute for net income attributable to Lear, diluted net income
per share attributable to Lear, cash provided by operating
activities or other income statement or cash flow statement data
prepared in accordance with GAAP or as a measure of profitability
or liquidity. In addition, the calculation of free cash flow does
not reflect cash used to service debt and, therefore, does not
reflect funds available for investment or other discretionary uses.
Also, these non-GAAP financial measures, as determined and
presented by the Company, may not be comparable to related or
similarly titled measures reported by other companies. Set forth
below are reconciliations of these non-GAAP financial measures to
the most directly comparable financial measures calculated and
presented in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated financial results and
liquidity. The words "will," "may," "designed to," "outlook,"
"believes," "should," "anticipates," "plans," "expects," "intends,"
"estimates," "forecasts" and similar expressions identify certain
of these forward-looking statements. The Company also may provide
forward-looking statements in oral statements or other written
materials released to the public. All statements contained or
incorporated in this press release or in any other public
statements that address operating performance, events or
developments that the Company expects or anticipates may occur in
the future are forward-looking statements. Factors that could cause
actual results to differ materially from these forward-looking
statements are discussed in the Company's Annual Report on Form
10-K for the year ended December 31,
2023, and its other Securities and Exchange Commission
filings. Future operating results will be based on various factors,
including actual industry production volumes, supply chain
disruptions, labor disruptions, commodity prices, changes in
foreign exchange rates, the impact of restructuring actions and the
Company's success in implementing its operating strategy.
Information in this press release relies on assumptions in the
Company's core sales backlog. The Company's core sales backlog
reflects anticipated net sales from formally awarded new programs
less lost and discontinued programs and excludes the impact of
non-core products winding down in our E-Systems business. The
Company enters into contracts with its customers to provide
production parts generally at the beginning of a vehicle's life
cycle. Typically, these contracts do not provide for a specified
quantity of production, and many of these contracts may be
terminated by the Company's customers at any time. Therefore, these
contracts do not represent firm orders. Further, the calculation of
the core sales backlog does not reflect customer price reductions
on existing or newly awarded programs. The core sales backlog may
be impacted by various assumptions embedded in the calculation,
including vehicle production levels on new programs, foreign
exchange rates and the timing of major program launches.
The forward-looking statements in this press release are made as
of the date hereof, and the Company does not assume any obligation
to update, amend or clarify them to reflect events, new information
or circumstances occurring after the date hereof.
About Lear Corporation
Lear, a global automotive
technology leader in Seating and E-Systems, enables superior
in-vehicle experiences for consumers around the world. Lear's
diverse team of talented employees in 38 countries is driven by a
commitment to innovation, operational excellence, and
sustainability. Lear is Making every drive better™ by providing the
technology for safer, smarter, and more comfortable journeys. Lear,
headquartered in Southfield,
Michigan, serves every major automaker in the world and
ranks 174 on the Fortune 500. Further information about Lear is
available at lear.com.
|
Lear Corporation and
Subsidiaries
Condensed Consolidated Statements of
Income
(Unaudited; in millions, except per share amounts)
|
|
|
|
Three Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Net sales
|
|
$
6,012.4
|
|
$
5,999.2
|
|
|
|
|
|
|
Cost of
sales
|
|
5,563.6
|
|
5,542.2
|
|
Selling, general and
administrative expenses
|
|
175.3
|
|
182.8
|
|
Amortization of
intangible assets
|
|
12.7
|
|
16.0
|
|
Interest
expense
|
|
26.9
|
|
26.2
|
|
Other expense,
net
|
|
7.4
|
|
19.5
|
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
226.5
|
|
212.5
|
|
Income taxes
|
|
46.2
|
|
41.5
|
|
Equity in net income of
affiliates
|
|
(14.1)
|
|
(16.2)
|
|
|
|
|
|
|
Consolidated net
income
|
|
194.4
|
|
187.2
|
|
Net income attributable
to noncontrolling interests
|
|
21.3
|
|
18.5
|
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
173.1
|
|
$
168.7
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to Lear
|
|
$
3.02
|
|
$
2.84
|
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
57.2
|
|
59.4
|
|
Lear Corporation and
Subsidiaries
Condensed Consolidated Statements of
Income
(Unaudited; in millions, except per share amounts)
|
|
|
|
Six Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Net sales
|
|
$
12,007.0
|
|
$
11,844.7
|
|
|
|
|
|
|
Cost of
sales
|
|
11,160.1
|
|
10,957.7
|
|
Selling, general and
administrative expenses
|
|
361.8
|
|
359.6
|
|
Amortization of
intangible assets
|
|
27.8
|
|
31.9
|
|
Interest
expense
|
|
53.0
|
|
50.4
|
|
Other expense,
net
|
|
20.9
|
|
33.2
|
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
383.4
|
|
411.9
|
|
Income taxes
|
|
86.7
|
|
87.1
|
|
Equity in net income of
affiliates
|
|
(24.6)
|
|
(25.8)
|
|
|
|
|
|
|
Consolidated net
income
|
|
321.3
|
|
350.6
|
|
Net income attributable
to noncontrolling interests
|
|
38.6
|
|
38.3
|
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
282.7
|
|
$
312.3
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
4.92
|
|
$
5.25
|
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
57.4
|
|
59.5
|
|
Lear Corporation and
Subsidiaries
Condensed Consolidated Balance
Sheets
(In millions)
|
|
|
|
June 29,
2024
|
|
December 31,
2023
|
|
|
(Unaudited)
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
Current:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
950.3
|
|
$
1,196.3
|
|
Accounts
receivable
|
|
4,158.8
|
|
3,681.2
|
|
Inventories
|
|
1,702.4
|
|
1,758.0
|
|
Other
|
|
969.3
|
|
1,001.4
|
|
|
7,780.8
|
|
7,636.9
|
|
Long-Term:
|
|
|
|
|
|
PP&E,
net
|
|
2,864.7
|
|
2,977.4
|
|
Goodwill
|
|
1,720.4
|
|
1,737.9
|
|
Other
|
|
2,316.0
|
|
2,343.3
|
|
|
6,901.1
|
|
7,058.6
|
|
|
|
|
|
|
Total Assets
|
|
$
14,681.9
|
|
$
14,695.5
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current:
|
|
|
|
|
|
Short-term
borrowings
|
|
$
26.8
|
|
$
27.5
|
|
Accounts payable and
drafts
|
|
3,552.2
|
|
3,434.2
|
|
Accrued
liabilities
|
|
2,238.5
|
|
2,205.2
|
|
Current portion of
long-term debt
|
|
0.3
|
|
0.3
|
|
|
5,817.8
|
|
5,667.2
|
|
Long-Term:
|
|
|
|
|
|
Long-term
debt
|
|
2,743.5
|
|
2,742.6
|
|
Other
|
|
1,206.6
|
|
1,225.1
|
|
|
3,950.1
|
|
3,967.7
|
|
|
|
|
|
|
Equity
|
|
4,914.0
|
|
5,060.6
|
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$
14,681.9
|
|
$
14,695.5
|
|
Lear Corporation and
Subsidiaries
Consolidated Supplemental Data
(Unaudited; in millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Net Sales
|
|
|
|
|
|
North
America
|
|
$
2,552.5
|
|
$
2,469.8
|
|
Europe and
Africa
|
|
2,171.6
|
|
2,192.5
|
|
Asia
|
|
1,074.4
|
|
1,109.1
|
|
South
America
|
|
213.9
|
|
227.8
|
|
Total
|
|
$
6,012.4
|
|
$
5,999.2
|
|
|
|
|
|
|
Content per Vehicle 1
|
|
|
|
|
|
North
America
|
|
$
614
|
|
$
604
|
|
Europe and
Africa
|
|
$
481
|
|
$
457
|
|
|
|
|
|
|
Free Cash Flow 2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
291.2
|
|
$
311.4
|
|
Settlement of accounts
payable in conjunction with acquisition of IGB
|
|
—
|
|
15.4
|
|
Capital
expenditures
|
|
(120.8)
|
|
(168.3)
|
|
Free cash
flow
|
|
$
170.4
|
|
$
158.5
|
|
|
|
|
|
|
Core Operating Earnings 2
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
173.1
|
|
$
168.7
|
|
Interest
expense
|
|
26.9
|
|
26.2
|
|
Other expense,
net
|
|
7.4
|
|
19.5
|
|
Income
taxes
|
|
46.2
|
|
41.5
|
|
Equity in net income
of affiliates
|
|
(14.1)
|
|
(16.2)
|
|
Net income
attributable to noncontrolling interests
|
|
21.3
|
|
18.5
|
|
Restructuring costs and
other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
33.7
|
|
34.3
|
|
Acquisition
costs
|
|
0.4
|
|
0.2
|
|
Acquisition-related
inventory fair value adjustment
|
|
—
|
|
1.8
|
|
Impairments related to
Fisker
|
|
0.3
|
|
—
|
|
Impairments related to
Russian operations
|
|
(0.3)
|
|
—
|
|
Intangible asset
impairment
|
|
—
|
|
1.0
|
|
Gain related to
typhoon in the Philippines
|
|
—
|
|
(0.3)
|
|
Other
|
|
7.1
|
|
6.6
|
|
Core operating
earnings
|
|
$
302.0
|
|
$
301.8
|
|
Lear Corporation
and Subsidiaries
Consolidated Supplemental
Data
(continued)
(Unaudited; in millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Adjusted Net Income and Adjusted Earnings Per
Share 2
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
173.1
|
|
$
168.7
|
|
Restructuring costs and
other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
32.1
|
|
34.3
|
|
Acquisition
costs
|
|
0.4
|
|
0.2
|
|
Acquisition-related
inventory fair value adjustment
|
|
—
|
|
1.8
|
|
Impairments related to
Fisker
|
|
0.3
|
|
—
|
|
Impairments related to
Russian operations
|
|
(0.3)
|
|
—
|
|
Intangible asset
impairment
|
|
—
|
|
1.0
|
|
Gain related to
typhoon in the Philippines
|
|
—
|
|
(0.3)
|
|
Foreign exchange
(gains) losses due to foreign exchange rate volatility
related to Russia
|
|
1.0
|
|
(1.0)
|
|
Other
|
|
9.6
|
|
7.2
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(10.4)
|
|
(14.0)
|
|
Adjusted net
income
|
|
$
205.8
|
|
$
197.9
|
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
57.2
|
|
59.4
|
|
|
|
|
|
|
Diluted net income per
share available to Lear
|
|
$
3.02
|
|
$
2.84
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.60
|
|
$
3.33
|
|
|
|
|
|
|
Adjusted Depreciation and Amortization
2
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
153.9
|
|
$
151.2
|
|
Less - Intangible asset
impairment
|
|
—
|
|
1.0
|
|
Adjusted depreciation
and amortization
|
|
$
153.9
|
|
$
150.2
|
|
Lear Corporation and
Subsidiaries
Consolidated Supplemental
Data
(continued)
(Unaudited; in millions, except content per vehicle and per share
amounts)
|
|
|
|
Six Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Net Sales
|
|
|
|
|
|
North
America
|
|
$
5,028.4
|
|
$
4,849.8
|
|
Europe and
Africa
|
|
4,425.4
|
|
4,423.5
|
|
Asia
|
|
2,134.1
|
|
2,128.6
|
|
South
America
|
|
419.1
|
|
442.8
|
|
Total
|
|
$
12,007.0
|
|
$
11,844.7
|
|
|
|
|
|
|
Content per Vehicle 1
|
|
|
|
|
|
North
America
|
|
$
619
|
|
$
608
|
|
Europe and
Africa
|
|
$
478
|
|
$
461
|
|
|
|
|
|
|
Free Cash Flow 2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
256.6
|
|
$
275.8
|
|
Settlement of accounts
payable in conjunction with acquisition of IGB
|
|
—
|
|
15.4
|
|
Capital
expenditures
|
|
(234.4)
|
|
(280.1)
|
|
Free cash
flow
|
|
$
22.2
|
|
$
11.1
|
|
|
|
|
|
|
Core Operating Earnings 2
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
282.7
|
|
$
312.3
|
|
Interest
expense
|
|
53.0
|
|
50.4
|
|
Other expense,
net
|
|
20.9
|
|
33.2
|
|
Income
taxes
|
|
86.7
|
|
87.1
|
|
Equity in net income
of affiliates
|
|
(24.6)
|
|
(25.8)
|
|
Net income
attributable to noncontrolling interests
|
|
38.6
|
|
38.3
|
|
Restructuring costs and
other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
88.0
|
|
48.9
|
|
Acquisition
costs
|
|
0.5
|
|
0.5
|
|
Acquisition-related
inventory fair value adjustment
|
|
—
|
|
1.8
|
|
Impairments related to
Fisker
|
|
14.8
|
|
—
|
|
Impairments related to
Russian operations
|
|
1.1
|
|
—
|
|
Intangible asset
impairment
|
|
—
|
|
1.9
|
|
Costs related to
typhoon in the Philippines
|
|
—
|
|
0.2
|
|
Other
|
|
20.1
|
|
16.4
|
|
Core operating
earnings
|
|
$
581.8
|
|
$
565.2
|
|
Lear Corporation and
Subsidiaries
Consolidated Supplemental
Data
(continued)
(Unaudited; in millions, except content per vehicle and per share
amounts)
|
|
|
|
Six Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Adjusted Net Income Attributable to Lear
2
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
282.7
|
|
$
312.3
|
|
Restructuring costs and
other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
86.4
|
|
48.9
|
|
Acquisition
costs
|
|
0.5
|
|
0.5
|
|
Acquisition-related
inventory fair value adjustment
|
|
—
|
|
1.8
|
|
Impairments related to
Fisker
|
|
14.8
|
|
—
|
|
Impairments related to
Russian operations
|
|
1.1
|
|
—
|
|
Intangible asset
impairment
|
|
—
|
|
1.9
|
|
Costs related to
typhoon in the Philippines
|
|
—
|
|
0.2
|
|
Foreign exchange
(gains) losses due to foreign exchange rate volatility
related to Russia
|
|
1.0
|
|
(2.0)
|
|
Loss related to
affiliate
|
|
2.2
|
|
5.0
|
|
Other
|
|
23.4
|
|
12.2
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(23.1)
|
|
(17.1)
|
|
Adjusted net income
attributable to Lear
|
|
$
389.0
|
|
$
363.7
|
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
57.4
|
|
59.5
|
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
4.92
|
|
$
5.25
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
6.78
|
|
$
6.12
|
|
|
|
|
|
|
Adjusted Depreciation and Amortization
2
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
309.2
|
|
$
298.4
|
|
Less - Intangible asset
impairment
|
|
—
|
|
1.9
|
|
Adjusted depreciation
and amortization
|
|
$
309.2
|
|
$
296.5
|
|
|
|
|
|
|
Diluted Shares Outstanding at End of
Period 4
|
|
56,928,966
|
|
59,210,340
|
|
|
|
|
|
|
1 Content
per Vehicle for 2023 has been updated to reflect actual production
levels.
|
|
|
|
|
|
|
2 See
"Non-GAAP Financial Information" included in this press
release.
|
|
|
|
|
|
|
|
|
|
|
3 Represents
the tax effect of restructuring costs and other special items, as
well as several discrete tax items.
The identification of these tax items is judgmental in nature, and
their calculation is based on various
assumptions and estimates.
|
|
|
|
|
|
|
4 Calculated
using stock price at end of quarter.
|
|
|
|
|
|
Lear Corporation and
Subsidiaries
Segment Supplemental Data
(Unaudited; in millions, except margins)
|
|
|
|
Three Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Adjusted Segment Earnings
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
4,447.0
|
|
$
4,468.1
|
|
|
|
|
|
|
Segment
earnings
|
|
$
276.0
|
|
$
292.9
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
22.9
|
|
25.3
|
|
Acquisition-related
inventory fair value adjustment
|
|
—
|
|
1.8
|
|
Impairments related to
Russian operations
|
|
(0.3)
|
|
—
|
|
Other
|
|
3.5
|
|
2.1
|
|
Adjusted segment
earnings
|
|
$
302.1
|
|
$
322.1
|
|
|
|
|
|
|
Segment
margins
|
|
6.2 %
|
|
6.6 %
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.8 %
|
|
7.2 %
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
1,565.4
|
|
$
1,531.1
|
|
|
|
|
|
|
Segment
earnings
|
|
$
69.5
|
|
$
52.9
|
|
Restructuring and
other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
10.0
|
|
8.1
|
|
Impairments related to
Fisker
|
|
0.3
|
|
—
|
|
Intangible asset
impairment
|
|
—
|
|
1.0
|
|
Gain related to
typhoon in the Philippines
|
|
—
|
|
(0.5)
|
|
Other
|
|
2.4
|
|
1.8
|
|
Adjusted segment
earnings
|
|
$
82.2
|
|
$
63.3
|
|
|
|
|
|
|
Segment
margins
|
|
4.4 %
|
|
3.5 %
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.3 %
|
|
4.1 %
|
|
Lear Corporation and
Subsidiaries
Segment Supplemental
Data
(continued)
(Unaudited; in millions, except margins)
|
|
|
|
Six Months Ended
|
|
|
June 29,
2024
|
|
July 1,
2023
|
|
Adjusted Segment Earnings
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
8,924.6
|
|
$
8,921.1
|
|
|
|
|
|
|
Segment
earnings
|
|
$
517.6
|
|
$
578.7
|
|
Costs related to
restructuring actions
|
|
66.6
|
|
37.3
|
|
Acquisition-related
inventory fair value adjustment
|
|
—
|
|
1.8
|
|
Impairments related to
Fisker
|
|
2.3
|
|
—
|
|
Impairments related to
Russian operations
|
|
1.1
|
|
—
|
|
Other
|
|
9.4
|
|
4.7
|
|
Adjusted segment
earnings
|
|
$
597.0
|
|
$
622.5
|
|
|
|
|
|
|
Segment
margins
|
|
5.8 %
|
|
6.5 %
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.7 %
|
|
7.0 %
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
3,082.4
|
|
$
2,923.6
|
|
|
|
|
|
|
Segment
earnings
|
|
$
123.6
|
|
$
95.2
|
|
Costs related to
restructuring actions
|
|
18.8
|
|
10.4
|
|
Impairments related to
Fisker
|
|
12.5
|
|
—
|
|
Intangible asset
impairment
|
|
—
|
|
1.9
|
|
Gain related to
typhoon in the Philippines
|
|
—
|
|
(0.1)
|
|
Other
|
|
4.4
|
|
4.8
|
|
Adjusted segment
earnings
|
|
$
159.3
|
|
$
112.2
|
|
|
|
|
|
|
Segment
margins
|
|
4.0 %
|
|
3.3 %
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.2 %
|
|
3.8 %
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lear-reports-second-quarter-2024-results-302206030.html
SOURCE Lear Corporation