Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in ora ...

Financial Data and Key Metrics Changes - The company generated record quarterly revenue of over $6 billion in Q2 2024, reflecting a modest increase compared to the previous year [15][20] - Core operating earnings remained flat at $302 million, while adjusted earnings per share increased by 8% to $3.60, driven by higher adjusted net income and share repurchase benefits [20][28] - Operating cash flow was $291 million, and free cash flow was $170 million, marking an 8% increase compared to last year [20][53] Business Line Data and Key Metrics Changes - In the E-Systems segment, sales reached $1.6 billion, a 2% increase from 2023, with adjusted earnings improving to $82 million, reflecting strong net operating performance [54] - The Seating segment reported sales of $4.4 billion, flat compared to 2023, with adjusted earnings down 6% to $302 million due to lower production on key Lear platforms [29][30] - The company continues to see strong demand for innovative thermal comfort solutions in Seating, with a focus on new product launches [21][36] Market Data and Key Metrics Changes - Global vehicle production decreased by 1% year-over-year, with North America production up 2% and China up 5%, while Europe saw a 6% decline [26] - The company outperformed industry production in North America by 1 percentage point, driven by new business on the General Motors Ultium platform [27] - In China, revenue growth lagged the market by 5 percentage points, primarily due to lower volumes on Lear platforms, although new business with domestic automakers like BYD and Geely is expected to improve the customer mix [52][49] Company Strategy and Development Direction - The company is focused on negotiating agreements to ensure sustainable financial returns and has increased its restructuring cost outlook to $150 million to improve manufacturing capacity utilization [31][56] - The acquisition of WIP Industrial Automation is expected to enhance automation and AI capabilities, further strengthening the company's position as an advanced manufacturing integrator [46][37] - The company aims to meet or exceed its total revenue target of $1 billion from thermal comfort by 2027, leveraging its innovative product offerings [22][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainty due to lower volumes on electric vehicle platforms but remains confident in long-term growth driven by strong backlogs and market share gains [72][86] - The company expects to reduce headcount in both Seating and E-Systems by approximately 8% and 6%, respectively, to drive savings and improve efficiency [57][58] - Management highlighted that the financial return profile with Chinese domestic customers aligns with segment averages, indicating continued growth potential in that market [50][49] Other Important Information - The company repurchased $60 million worth of stock in Q2 2024 and has a target of $325 million for the year, which will help accelerate earnings per share growth [34][59] - The company has seen a significant increase in its non-consolidated backlog, which rose by 70% to $650 million, positioning it well for future growth in Asia [49] Q&A Session Summary Question: What is the competitive landscape for BYD's seating suppliers? - The company has a significant share of BYD's seating supply, with expectations to produce about 30% of their seats in the coming years, while also maintaining a strong presence in emerging markets [40][73] Question: How does the company view the impact of recent production cuts by OEMs? - Management indicated that the revenue guidance adjustment is largely driven by lower volumes on electric vehicle platforms, with expectations of continued adjustments based on industry demand [64][72] Question: What is the outlook for seating margins moving forward? - The company is focused on improving seating margins through operational efficiencies and expects to see a gradual recovery in margins as restructuring actions take effect [82][90] Question: How is the company addressing the impact of the UAW strike? - Management confirmed that the costs associated with the UAW contract are reflected in their guidance, and they are closely monitoring the situation [101][94] Question: What is the expected impact of automation on future margins? - The acquisition of WIP Industrial Automation is expected to enhance operational efficiencies, potentially leading to higher margins in the long term [112][113]

Lear (LEA) came out with quarterly earnings of $3.60 per share, beating the Zacks Consensus Estimate of $3.34 per share. This compares to earnings of $3.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.78%. A quarter ago, it was expected that this automotive seating and electrical distribution systems company would post earnings of $3.04 per share when it actually produced earnings of $3.18, delivering a surprise of 4.61% ...

Tim Brumbaugh (248) 447-1329 FOR IMMEDIATE RELEASE Lear Contacts: Marianne Vidershain (248) 447-5541 "In the second quarter, Lear grew sales to a record level and improved year-over-year margins in E- Systems for the eighth consecutive quarter," said Ray Scott, Lear's President and Chief Executive Officer. "We are executing our thermal comfort strategy, and, today, we are introducing ComfortFlex by Lear™ modular designs and the ComfortMax Seat by Lear™ technology. Our ComfortFlex by Lear™ solutions are high ...

Per Ray Scott, president and CEO of Lear, the acquisition will boost the company's profitability and enhance its ability to quickly deliver innovative solutions to customers. Some better-ranked stocks in the auto space are Suzuki Motor Corporation (SZKMY) , Honda Motor Co., Ltd. (HMC) and American Axle & Manufacturing Holdings, Inc. (AXL) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Lear Corporation (LEA) , a global leader in au ...

SOUTHFIELD, Mich., July 17, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, has completed its acquisition of WIP Industrial Automation ("WIP"). Lear previously announced it had entered into a definitive agreement to acquire WIP on April 29, 2024. "As a trusted, long-time supplier to Lear, we are happy to welcome WIP and its employees to the Lear family," said Ray Scott, Lear President and CEO. "With our collective resources, we will deepen o ...

SOUTHFIELD, Mich., June 26, 2024 /PRNewswire/ -- Lear Corporation will hold a conference call to review the company's second quarter 2024 financial results and related matters on July 25, 2024, at 9:00 a.m. EDT. To participate in the conference call: Webcast link: click here Toll-free calls: 877-883-0383 International calls: 412-902-6506 The conference code is 4935995. You also may listen to the live audio webcast of the call, in listen-only mode, on Lear's Investor Relations website at ir.lear.com. The web ...

SOUTHFIELD, Mich., May 30, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, will participate in a fireside chat on June 11, 2024, at the Deutsche Bank Global Auto Industry Conference in New York. Representing Lear will be: Ray Scott, President and CEO Jason Cardew, SVP and Chief Financial Officer Lear's webcast will begin at 9:00am EDT and will run approximately 35 minutes. The webcast link will be available on the Company's website at ir.lea ...

SOUTHFIELD, Mich., May 20, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, effective May 16, made two key changes to its leadership team as it drives toward an Innovative, Digital, Engineered and Automated (IDEA) future. As previously announced by Lear in April, IDEA by Lear represents the next phase of the company's strategy to drive growth and improve profitability by utilizing technology and automation to develop innovative products and e ...

SOUTHFIELD, Mich., May 16, 2024 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, today announced that its Board of Directors has declared a quarterly cash dividend of $0.77 per share on the Company's common stock. The dividend is payable on June 25, 2024, to shareholders of record at the close of business on June 6, 2024. About Lear Corporation Lear, a global automotive technology leader in Seating and E-Systems, enables superior in-vehicle experi ...