Lear has posted a net income of US$76 million and adjusted net income of US$124 million for the first quarter of the year, compared with US$229 million and US$253 million, respectively, in the prior year. Core operating earnings stood at US$205 million, or 4.6% of sales, compared with US$378 million in the first quarter of 2019. In the Seating segment, margins and adjusted margins were 5.5% and 6% of sales, respectively. Estimated negative impact of Covid-19 on Lear’s sales and core operating earnings in the quarter was approximately US$900 million and US$200 million, respectively. Earnings per share was US$1.26 and adjusted earnings per share US$2.05, compared with US$3.73 and US$4.00, respectively, a year ago.
“Our first quarter financial results were significantly impacted by production disruptions stemming from the Covid-19 pandemic. We experienced plant shutdowns in China beginning in late January that were followed by shutdowns of almost all our global operations outside of China beginning in mid- to late-March”, said Ray Scott, President and CEO, Lear. “While significant near-term challenges remain, I am confident in the strength of our underlying business, long-term competitive position and liquidity.”
Lear said it is working closely with global customers and supply chain to help the industry prepare for the challenges associated with restarting manufacturing facilities. As part of these efforts, the company has embarked on a comprehensive evaluation of its supply base to identify and address any gaps that could impact the restarting of production.