Lear Q2 sales rise but profits fall

Lear, a supplier of chairs and e-systems, said sales outperformed global manufacturing output by six percentage points in the second quarter of 2022, reflecting above-market growth in both segments.

Revenue grew 7% to US$5.1 billion, from $4.8 billion in the second quarter of 2021.

Net income of $69 million and adjusted net income of $107 million compared to $175 million and $148 million a year ago.

Core operating income decreased from $233 million to $187 million.

Earnings per share of $1.14 and adjusted earnings per share of $1.79 compared to $2.89 and $2.45.

“In a quarter marked by ongoing supply chain disruptions in the industry, including significant Covid-related production shutdowns in China and higher raw material costs, Lear posted solid financial results in the second quarter,” President and CEO Ray Scott said in a statement.

“We are proactively taking steps to reduce costs and improve our manufacturing flexibility to position the company to succeed in multiple industrial volume scenarios. The IGB acquisition we announced in the quarter will further strengthen Lear’s position as a leading supplier of car seats.

“Our increased emphasis on thermal comfort will create value for our customers through innovative and efficient products that improve quality, performance, weight and cost. The strategic actions we are taking are designed to increase profits and cash flow and support higher cash returns for shareholders.”

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