Lear Corporation, a global automotive technology supplier of seating and e-systems, reported results for the second quarter 2023, which included an 18% increase in sales to $6 billion compared to $5.1 billion in Q2 of 2022.
Other highlights included:
- Sales outperformed global industry production, driven by growth over market in e-systems of 11 percentage points;
- Net income of $169 million and adjusted net income of $198 million, compared to $69 million and $107 million, respectively, in the second quarter of 2022;
- Core operating earnings increased 61% to $302 million, compared to $187 million in the second quarter of 2022;
- Net cash provided by operating activities of $311 million and free cash flow of $159 million, compared to $11 million and $161 million, respectively, in the second quarter of 2022;
- Extending competitive advantage in seating with developments in thermal comfort systems;
- Completed acquisition of I.G. Bauerhin (IGB), further expanding product capabilities in thermal comfort systems;
- Shared strategic vision for thermal comfort systems and increased targets for seating market share and margins during Seating Product Day;
- Awarded first-to-market contract to supply Intutm comfort and wellness products on several future vehicle models with an ultra-luxury European automaker;
- Agreed with Valeo to explore proprietary solutions that integrate Valeo HVAC and radiant panel technologies with Lear thermal comfort seating technologies to optimize occupant comfort and user experience while extending EV range and helping to achieve our sustainability goals
- One of 200 companies named to U.S. News & World Report’s 2023-2024 “Best Companies to Work For” list
- Released 2022 Sustainability Report, which highlights progress on our climate goals, sustainable product development and diversity, equity and inclusion initiatives
“Lear’s positive momentum accelerated in the second quarter with record sales and improved operating results in both business segments,” said Ray Scott, Lear’s president and CEO. “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%.
