Lower sales for Lear Corporation

Worldwide
Published:  29 January, 2020
Chevrolet Corvette. Credit: Lear

The automotive technology and seating manufacturer cited a 6% decline in industry production among the factors affecting the company’s results.

For the fourth quarter of 2019, Lear posted sales of US$4.8 billion compared with US$4.9 billion in the same quarter of 2018, and a net income of US$126 million and adjusted net income of US$161 million, compared to US$212 million and US$261 million, respectively, in the prior year. For the full year 2019, Lear’s sales totalled US$19.8 billion, down from US$21.1 billion in 2018, while net income stood at US$754 million and adjusted net income US$866 million, compared with US$1,150 million and US$1,205 million, respectively, in 2018. Earnings per share in 2019 was US$12.75 and adjusted earnings per share US$13.99, down from US$17.22 and US$18.22, respectively, for the full year 2018.

“Lear delivered solid financial results in 2019, considering the challenging macroeconomic and industry environment. Our financial results were affected by a 6% decline in industry production, an extended labour strike at our largest customer, and the weakening of global currencies against the U.S. dollar," said Ray Scott, President and CEO, Lear. “During 2019, we launched over US$1 billion in new business, maintained our focus on operational excellence, and improved efficiencies. Though the environment remains challenging, we are confident in our ability to deliver profitable growth, generate strong cash flow, and increase long-term shareholder value.”