Lear sales grow faster than worldwide auto production in second quarter 2017
Lear Corporation, the global supplier of automotive seating and electrical systems, reported record sales in the second quarter 2017 of US$ 5.1 billion, up 8% from a year ago, up 10% excluding the impact of foreign exchange. The result outpaced worldwide automotive production growth of 3.0% according to IHS Automotive.
The company’s net income for the second quarter 2017 totaled US$ 312 million, up 10% from US$ 282 million in the prior year, while its core operating earnings reached US$ 439 million with a margin of 8.6%, up from 8.4% a year ago.
Earnings per share ended in US$ 4.49 and adjusted earnings per share were US$ 4.39, up 20% from the prior year. Net cash provided by operating activities and free cash flow of US$ 566 million and US$ 413 million, respectively.
Lear highlighted in its quarterly report it completed the acquisition of Grupo Antolin’s seating business. Due to that transaction, the company has increased its full year outlook based on strong first half performance, the addition of Grupo Antolin’s and its outlook for the rest of the year
“In the second quarter, we continued to grow our sales faster than industry production, improve our operating margins in both segments and achieve record overall financial results. Accordingly, we are increasing our full year outlook for sales, earnings and free cash flow,” said Matt Simoncini, Lear’s president and chief executive officer.
“With our unique product capabilities, industry-leading cost structure and record backlog, we are well positioned to continue to gain market share and grow our earnings,” Simoncini added.
Lear operates 46 plants in Mexico. During the last four years the company has opened 12 plants in the country. The auto supplier estimates its Mexican workforce will total 56,000 employees by the end of the year.