Lear Corporation, a global automotive technology leader in Seating and E-Systems, today reported results for the fourth quarter and full year 2020 and provided its financial outlook for the full year 2021. Highlights include:
Fourth Quarter 2020
- Sales of $5.2 billion, compared to $4.8 billion in the fourth quarter of 2019
- Continued to grow sales faster than the market in both segments; E-Systems growth over market of 11 percentage points and Seating growth over market of 7 percentage points
- Net income of $202 million and adjusted net income of $221 million, compared to net income of $126 million and adjusted net income of $161 million in the prior year
- Core operating earnings of $330 million, compared to $241 million in the fourth quarter of 2019
- Earnings per share of $3.33and adjusted earnings per share of $3.66, compared to $2.50 and $2.64, respectively, in the fourth quarter of 2019
- Reinstituted and paid quarterly cash dividend of $0.25 per share
Full Year 2020
- Above market sales growth in both segments; E-Systems growth over market of 10 percentage points and Seating growth over market of 4 percentage points
- $2.8 billion backlog for 2021-2023 supports continued growth over market in Seating and E-Systems; driven both by new conquest awards and the benefits of our growing electrification business
- Net cash provided by operating activities of $663 million and free cash flow of $211 million, compared to net cash provided by operating activities of $1,284 million and free cash flow of $680 million for the full year 2019
- Cash and cash equivalents at year-end of $1.3 billion and total liquidity of $3.1 billion
“Lear delivered strong financial performance in the fourth quarter of 2020,” said Ray Scott, Lear’s President and Chief Executive Officer. “The team achieved these strong results and continued to execute Lear’s key strategic growth initiatives while navigating the unique challenges presented by the COVID-19 pandemic. It is an exciting time in the automotive industry, as the transition to electric vehicles is accelerating and global vehicle production volumes are growing. Lear is very well positioned to benefit from these trends, which, coupled with our disciplined approach to investing in the business, reinforces our confidence in Lear’s ability to deliver superior shareholder returns over the long term.”
Fourth Quarter Financial Results
(in millions, except per share amounts)
In the fourth quarter, global vehicle production increased by 2% compared to a year ago, with North America flat, Europe up 1% and China up 5%. Global production declined on a Lear sales-weighted basis(2) by approximately 2%.
Sales in the fourth quarter increased 9% year over year to $5.2 billion. Excluding the impact of foreign exchange and acquisitions, sales were up 6%, primarily reflecting the addition of new business. Sales growth over market in the fourth quarter was 8 percentage points, driven primarily by the impact of new business in both segments.
Core operating earnings were $330 million, or 6.3% of sales, compared to $241 million, or 5.0% of sales, in 2019. In the Seating segment, margins and adjusted margins were 6.9% and 7.6%, respectively. In the E-Systems segment, margins and adjusted margins were 6.9% and 7.6%, respectively.
Earnings per share were $3.33, compared to $2.50 in 2019. Adjusted earnings per share were $3.66, up from $2.64 per share in 2019, primarily reflecting higher operating earnings.
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SOURCE: Lear
