Lear Corporation, a global automotive technology leader in Seating and E-Systems, today reported results for the third quarter 2020 and provided its financial outlook for the full year 2020.
Third Quarter 2020 Highlights
- Sales of $4.9 billion, compared to $4.8 billion in the third quarter of 2019
- Continued to grow sales faster than the market in both segments; E-Systems growth over market of 12 percentage points
- Net income of $174 million and adjusted net income of $225 million, compared to net income of $216 million and adjusted net income of $217 million in the prior year
- Core operating earnings of $327 million, compared to core operating earnings of $338 million in the third quarter of 2019
- Earnings per share of $2.89 and adjusted earnings per share of $3.73, compared to $3.58 and $3.54, respectively, in the third quarter of 2019
- Net cash provided by operating activities of $565 million and free cash flow of $474 million, compared to net cash provided by operating activities of $343 million and free cash flow of $193 million in the third quarter of 2019
- Fully repaid $1.0 billion draw on revolving credit facility
- Cash and cash equivalents at quarter end of $1.25 billion and total liquidity of $3.0 billion
“The steps we took to prepare our plants to safely ramp up production following COVID-19-related shutdowns and position the Company for success resulted in significantly improved third quarter performance,” said Ray Scott, Lear’s President and Chief Executive Officer. “Despite lower industry volumes versus a year ago, we generated operating margins near pre-COVID levels in both business segments. I am very pleased with how quickly the industry recovered and our business rebounded after the second quarter shutdowns, and, barring any COVID-19-related disruptions or a significant change in industry demand, I am optimistic that our positive momentum will continue for the balance of the year. We will continue to focus on driving operational efficiencies, investing for long-term profitable growth, and delivering superior shareholder returns.”
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