Lear Q4 results hit by lower global automotive production

Worldwide
Published:  29 January, 2019

The automotive seating and components supplier has posted solid full year results despite challenging macroeconomic headwinds in the fourth quarter.

Lear Corp has posted sales of US$4.9 billion in the fourth quarter of 2018, against US$5.4 billion a year earlier (-8%). Excluding the impact of foreign exchange, sales were down -5%, “reflecting lower production on key Lear platforms, partially offset by the addition of new business in both of our product segments”. Net income in the quarter was US$212 million and adjusted net income of US$261 million, down from US$401 million and US$300 million, respectively, in Q4 2017. Core operating earnings totalled US$389 million (Q4 2017: US$441 million), or 7.9% of sales. In the Seating segment, margins and adjusted margins were 7.5% and 8% of sales, respectively.

In full 2018, Lear’s sales totalled US$21.1 billion, up +3% from US$20.5 billion for the full 2017. Net income was US$1,150 million and adjusted net income US$1,205 million, compared with US$1,313 million and US$1,178 million, respectively, in the prior year. Core operating earnings amounted to US$1,749 million (2017: US$1,719 million), or 8.3% of sales. In the Seating segment, margins and adjusted margins were 7.9% and 8.3% of sales, respectively. 

Ray Scott, President and CEO, Lear, said global vehicle production decreased by 5% in the fourth quarter compared with the previous year, with China down 15%. "While the industry will continue to face challenges in 2019, we are well positioned with two high-performing business segments that are complementary and aligned with the key trends driving the future of the automotive industry."

Global automotive leather manufacturer, Eagle Ottawa is part of Lear Corp.