SOUTHFIELD–The Southfield-based automotive seating and electronics manufacturer Lear Corp. (NYSE: LEA) reported net income of $168.7 million or $2.84 a share, up from $68.5 million or $1.14 a share in the same quarter a year earlier.
Revenue rose 18 percent to a record $6 billion, up from $5.07 billion a year earlier.
For the first six months of 2023, net income was $312.3 million or $5.25 a share, up from $117.9 million or $1.96 a share a year earlier. Revenue was $11.84 billion, up from $10.28 billion a year earlier.
“Lear’s positive momentum accelerated in the second quarter with record sales and improved operating results in both business segments,” said Lear President and CEO Ray Scott. “Core operating earnings in the quarter were the highest in over two years and sales once again outpaced market growth rates. At our Seating Product Day, we shared our strategic vision to leverage our industry-leading component capabilities to gain market share and improve margins. In E-Systems, margins improved in the quarter, and the business is on track for further margin improvements in the second half of the year. We continue to focus our efforts on operational excellence and positioning Lear to deliver profitable growth, strong cash flow and significant shareholder returns.”
In the second quarter, global vehicle production increased by 15% compared to a year ago, with North America up 15%, Europe up 15% and China up 19%. Global vehicle production increased 15% on a Lear sales-weighted basis.
Core operating earnings were $302 million, or 5% of sales, compared to $187 million, or 3.7% of sales, in 2022. The increase in earnings resulted primarily from higher production on key Lear platforms and the addition of new business. In the Seating segment, margins and adjusted margins were 6.6% and 7.2% of sales, respectively. In the E-Systems segment, margins and adjusted margins were 3.5% and 4.1% of sales, respectively.
The company’s financial outlook, which was updated on June 27, forecasts net sales of $22.35 billion to $23.05 billion, and free cash flow of between $480 million and $580 million.
To listen to a replay of a conference call discussing these results, visit ir.lear.com.