For the fourth quarter of 2020, Lear reported that global vehicle production increased 2% year-on-year, with North America flat, Europe up 1% and China up 5%. Global production declined on a Lear sales-weighted basis by approximately 2%. Lear’s sales in the fourth quarter increased 9% to US$5.2 billion. Excluding the impact of foreign exchange and acquisitions, sales were up 6%, primarily reflecting the addition of new business, according to the company. Core operating earnings were US$330 million, or 6.3% of sales, up from US$241 million, or 5% of sales, in 2019. In the Seating segment, margins and adjusted margins were 6.9% and 7.6%, respectively. Earnings per share were US$3.33, up from US$2.50 in 2019.
For full 2020, Lear reported that global vehicle production declined significantly, reflecting industry disruptions related to the Covid-19 pandemic. Global vehicle production declined 17%, with North America down 20%, Europe down 22% and China down 5%. Lear’s sales for the full year decreased 14% to US$17 billion. Excluding the impact of foreign exchange and acquisitions, Lear said sales were down 14%, reflecting lower global vehicle production, partially offset by the addition of new business in both of its product segments. Core operating earnings were US$614 million, or 3.6% of sales, compared with US$1,309 million, or 6.6% of sales, in 2019. In the Seating segment, margins and adjusted margins were 4.6% and 5.4% of sales, respectively. Earnings per share were US$2.62, compared with US$12.75 in 2019.
