Lear Corp. Q4 Earnings Plunge, But Beat Estimates

Lear Corporation (LEA) on Tuesday announced an overall gain of $21.5 million or $0.36 per share in the final quarter, altogether lower than $201.6 million or $3.33 per share in a similar quarter a year prior. The outcomes reflected a decrease in vehicle creation because of the overall semiconductor lack. Be that as it may, profit outperformed the Street gauges.

Barring one-time things, income was $73.6 million or $1.22 per share. This contrasts and the normal gauge of examiners surveyed by Thomson Reuters at $1.1 per share. Investigators’ appraisals commonly prohibit exceptional things.

Deals for the quarter declined 7% to $4.879 billion from $5.243 billion last year, affected by the decline in worldwide vehicle creation because of semiconductor lack. The agreement gauge was for $4.72 billion.

Anticipating 2022, the organization anticipates that net deals should be in the scope of $20.8 billion-$22.3 billion. Experts’ assumption for deals remains at $23.33 billion.

Talking about the growth for the last few years, Sales growth over the market of 8 percentage points, with Seating growth over the market of 9 percentage points and E-Systems growth over the market of 5 percentage points. Seating market share increased from 23% to 25%. Sales increased 13% to $19.3 billion, compared to $17.0 billion for the full year of 2020.

Net income of $374 million and adjusted net income of $480 million, compared to $159 million and $322 million, respectively, for the full year of 2020. Core operating earnings increased 35% to $826 million, compared to $614 million for the full year of 2020.

Earnings per share of $6.19 and adjusted earnings per share of $7.94, compared to $2.62 and $5.33, respectively, in the full year 2020.

$3.3 billion backlogs for 2022-2024 supports continued growth over the market in Seating and E-Systems, driven by both conquest awards and the benefits of our growing electrification business.

Net cash provided by operating activities of $670 million and free cash flow of $85 million, compared to $663 million and $211 million, respectively for the full year of 2020. Returned $207 million of cash to shareholders through dividends and share repurchases. Cash and cash equivalents at year-end of $1.3 billion and total liquidity of $3.3 billion.

Lear Corporation is an American company that manufactures automotive seating and automotive electrical systems. In 2019, it ranked #147 and in 2018, it ranked #148 on the Fortune 500 list. Lear developed during the 1980s and 1990s through a progression of acquisitions. The organization looked to turn into a provider of complete inside car frameworks, that is, a provider of seating, electrical, flooring, inside trim, instrument boards, and so on, to unique hardware fabricating (OEM) auto organizations.