Lear Corporation, a global automotive technology leader in Seating and E-Systems, today reported results for the second quarter 2020.
Lear’s second quarter financial results were significantly impacted by the COVID-19 pandemic, which resulted in unprecedented extended shutdowns of automotive industry production. Global vehicle production declined by 46% compared to a year ago, and, on a Lear sales-weighted basis, global vehicle production was down 55%.
Second Quarter 2020 Highlights
- Sales of $2.4 billion, compared to $5.0 billion in the second quarter of 2019
- Net loss of $(294) million and adjusted net loss of $(249) million, compared to net income of $183 million and adjusted net income of $236 million in the prior year
- Core operating earnings of $(248) million, compared to $352 millionin the second quarter of 2019
- Earnings per share of $(4.89)and adjusted earnings per share of $(4.14), compared to $2.92 and $3.78,respectively, in the second quarter of 2019
- Net cash used by operating activities of $(525) million and free cash flow of $(611) million, compared to net cash provided by operating activities of $404 million and free cash flow of $268 million in the second quarter of 2019
- Cash and cash equivalents at quarter end of $1.8 billion and total liquidity of $2.5 billion; cash balance reflects $1 billion draw on $1.75 billion revolving credit facility
- Awarded significant new business, including additional conquest awards in Seating
- Recognized by GM as 2019 Supplier of the Year
- Won 2020 PACE Award for Xevo Market, the first white-label, intelligent, in-vehicle commerce and services platform for the automotive industry
- Demonstrated commitment to helping end racial injustice and fostering diversity, equity and inclusion through creation of new three-pillared initiative — Drive, Educate, Fund
- Joined the United Nations Global Compact, the world’s largest corporate responsibility initiative
- Increased capacity to produce protective face masks for front line workers, local communities and Company employees; over 10 million masks made at 12 Lear plants on three continents
“The second quarter of 2020 was one of the most challenging in our history,” said Ray Scott, Lear’s President and CEO. “Our business was negatively impacted by unprecedented production shutdowns in our major markets in April and May. As restrictions and closures eased, we concentrated our efforts on safely and efficiently restarting operations, managing costs, and positioning the company to take advantage of growth opportunities. Following the resumption of production, we saw weekly improvements in capacity utilization and in our business performance throughout the month of June. We also had another quarter of strong business wins, including additional conquest business in Seating. I am so proud of the Lear team for what we have accomplished this quarter, and, while we will continue to face an uncertain operating environment in the near term, I am confident that the Lear team will continue to rise to the challenge.”
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SOURCE: Lear
