SOUTHFIELD–The automotive seating and electronics supplier Lear Corp. (NYSE: LEA) reported net income of $132.9 million or $2.25 a share in the third quarter, up from $92.3 million and $1.54 a share in the same quarter a year earlier.
Revenue was $5.78 billion, up from $5.24 billion a year earlier.
For the nine months, net income was $445.2 million or $7.50 a share, up from $210.2 million or $3.50 a share a year earlier. Revenue was $17.63 billion, up from $15.52 billion in the first nine months of 2022.
“Lear’s positive momentum continued in the third quarter with our fifth consecutive quarter of improved year-over-year results,” said Ray Scott, Lear president and CEO. “Our strategy to streamline our product portfolio and improve our financial performance in E-Systems is on track, as the division reported its highest operating margins in more than two years. In Seating, we were again recognized as a leader in quality by J.D. Power, third-party validation of Lear’s strength in operational excellence. We also received our first General Motors seat ventilation award, continuing the momentum of new business wins in thermal comfort systems. I am confident that the actions we are taking to provide innovative solutions for our customers and improve operational efficiency in both business segments will support continued above market growth, increased profitability and cash flow, and significant returns for our shareholders.”
In the third quarter, global vehicle production increased by 4% compared to a year ago, with North America up 9%, Europe up 6% and China down 1%. Global vehicle production increased 8% on a Lear sales-weighted basis.
In the third quarter of 2023, net cash provided by operating activities was $404 million, and free cash flow was $251 million.
During the third quarter of 2023, Lear repurchased 521,552 shares of common stock for a total of $74.9 million. During the first three quarters of 2023, Lear repurchased 991,084 shares for a total of $138 million. Since initiating the share repurchase program in 2011, Lear has repurchased 54.2 million shares of common stock for a total of $5 billion at an average price of $92.42 per share, 51% of the shares outstanding in 2011.
Lear also provided 2023 sales guidance of $23.1 billion to $23.3 billion and operating cash flow of $1.23 billion to $1.27 billion.
To listen to a conference call discussing these results, visit ir.lear.com or call 877-883-0383 (domestic) or 1-412-902-6506 (international) with conference ID 7035224.