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Apr 01, 2023
Lear Q1 2023 Earnings Report
Lear reported strong first quarter results, with significant increases in revenue and earnings compared to the previous year, driven by growth over market in both Seating and E-Systems businesses.
Key Takeaways
Lear Corporation reported a 12% increase in sales to $5.8 billion, with sales growth over market of 6 percentage points. Net income was $144 million, and core operating earnings increased by 43% to $263 million. The company completed the acquisition of I.G. Bauerhin and secured key electrification awards.
Sales increased 12% to $5.8 billion, with 6 percentage points sales growth over market.
Net income reached $144 million, a significant increase from $49 million in the previous year.
Core operating earnings rose by 43% to $263 million, driven by higher production and new business.
The acquisition of IGB was completed, expanding product capabilities in thermal comfort systems.
Revenue by Segment
Forward Guidance
The company's 2023 financial outlook remains unchanged. Net Sales are projected to be between $21.2 billion and $22.2 billion. Core Operating Earnings are expected to be between $875 million and $1,075 million. Free Cash Flow is projected to be between $375 million and $525 million.
Positive Outlook
- Net Sales: $21,200 - $22,200 million
- Core Operating Earnings: $875 - $1,075 million
- Adjusted EBITDA: $1,475 - $1,675 million
- Operating Cash Flow: $1,075 - $1,225 million
- Free Cash Flow: $375 - $525 million
Challenges Ahead
- Restructuring Costs: Approximately $100 million
- Capital Spending: Approximately $700 million
- Industry volume assumptions are derived from internal estimates and customer production schedules.
- Financial outlook is based on a full year average exchange rate of $1.05/Euro and 7.00 RMB/$
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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