Lear’s Q3 results boosted by recovery in car production

Worldwide
Published:  02 November, 2020
Lear's facility in Flint, U.S. state of Michigan, opened in 2018

The U.S. headquartered supplier of automotive seats and components has reported sales of US$4.9 billion (+2%) for the third quarter of the year, compared with US$4.8 billion in the corresponding period of 2019.

Lear has posted a net income of US$174 million for the third quarter of 2020, with an adjusted net income of US$225 million, compared with US$216 million and US$217 million, respectively, in the prior year. Core operating earnings were US$327 million, compared with US$338 million in the third quarter of 2019. Earnings per share came in at US$2.89 and adjusted earnings per share was US$3.73, compared with US$3.58 and US$3.54, respectively, in the third quarter of the previous year.

“The steps we took to prepare our plants to safely ramp up production following Covid-19-related shutdowns and position the company for success resulted in significantly improved third quarter performance”, said Ray Scott, President and CEO, Lear. “Despite lower industry volumes versus a year ago, we generated operating margins near pre-Covid levels in both business segments. I am very pleased with how quickly the industry recovered and our business rebounded after the second quarter shutdowns, and, barring any Covid-19-related disruptions or a significant change in industry demand.”

According to Lear, global vehicle production recovered significantly in the third quarter versus the prior quarter but remained lower than prior year levels. Global vehicle production declined 4% year-on-year, with North America up 1%, Europe down 8% and China up 9%. Global production declines on a Lear sales-weighted basis were approximately 3%, said the manufacturer.