SOUTHFIELD, Mich., June 27,
2023 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a
global automotive technology leader in Seating and E-Systems,
increased the Company's 2023 financial outlook and Seating target
margins during its Seating Product Day.
Lear also shared details on its latest technologies and
announced new business awards in Thermal Comfort Systems that will
support market share gains and earnings growth in Seating.
Highlights include:
- Increased 2023 outlook for net sales, core operating earnings
and free cash flow
- Increased JIT seating market share target to 29% (from 28%) by
2027 and introduced overall Seating market share target of 32%
by 2027
- Increased Seating target margin range to 8.5% to 9.0% (from
7.5% to 8.5%)
- Expect Seating adjusted earnings to increase by ≈$700 million
from 2023 to 2027
- 2023 Thermal Comfort Systems awards are more than
40% ahead of last year
- Targeting #1 or #2 market positions for key Thermal Comfort
Systems product categories by 2027
- Announced that Lear controls 259 patent assets on
FlexAir™ and modularity
- Increased expected Thermal Comfort Systems total addressable
market industry outgrowth to 4 percentage points (from 2 percentage
points) annually through 2027
- Increased Thermal Comfort Systems revenue target to
$1 billion (from $800 million) by 2027
- Awarded first-to-market contract to supply INTU™ products
on several future vehicle models with an ultra-luxury European
automaker
- Awarded first FlexAir™ production contract on a crossover
vehicle launching in 2024 with an Asian automaker
- Announced exclusive automotive license for FlexAir™
technology
- Announced 16 development projects on 41 platforms for FlexAir™
and modularity
A replay of the Seating Product Day webcast can be accessed
through the Investor Relations section of Lear's website at
ir.lear.com.
Non-GAAP Information
In addition to amounts reported
in accordance with accounting principles generally accepted in
the United States (GAAP) included
throughout this press release, the Company has provided information
regarding "pretax income before equity income, interest, other
expense, restructuring costs and other special items" (core
operating earnings or adjusted Seating earnings) and "free cash
flow" (each, a non-GAAP financial measure). Other expense includes,
among other things, non-income related taxes, foreign exchange
gains and losses, gains and losses related to certain derivative
instruments and hedging activities, gains and losses on the
disposal of fixed assets and the non-service cost components of net
periodic benefit cost. Free cash flow represents net cash provided
by operating activities less capital expenditures.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position and results of
operations. In particular, management believes that core operating
earnings is a useful measure in assessing the Company's financial
performance by excluding certain items that are not indicative of
the Company's core operating performance or that may obscure trends
useful in evaluating the Company's continuing operating activities.
Management also believes that this measure provides improved
comparability between fiscal periods. Management believes that free
cash flow is useful to both management and investors in their
analysis of the Company's ability to service and repay its debt.
Further, management uses these non-GAAP financial measures for
planning and forecasting future periods.
Core operating earnings and free cash flow should not be
considered in isolation or as a substitute for net income
attributable to Lear, cash provided by operating activities or
other income statement or cash flow statement data prepared in
accordance with GAAP or as a measure of profitability or liquidity.
In addition, the calculation of free cash flow does not reflect
cash used to service debt and, therefore, does not reflect funds
available for investment or other discretionary uses. Also, these
non-GAAP financial measures, as determined and presented by the
Company, may not be comparable to related or similarly titled
measures reported by other companies.
About Lear Corporation
Lear, a global automotive
technology leader in Seating and E-Systems, enables superior
in-vehicle experiences for consumers around the world. Lear's
diverse team of talented employees in 37 countries is driven by a
commitment to innovation, operational excellence, and
sustainability. Lear is Making every drive better™ by providing the
technology for safer, smarter, and more comfortable journeys. Lear,
headquartered in Southfield,
Michigan, serves every major automaker in the world and
ranks 189 on the Fortune 500. Further information about Lear is
available at lear.com or on Twitter
@LearCorporation.
Forward-Looking Statements
This press release
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 oral statements or other written
materials released to the public. All statements contained or
incorporated in this press release or in any other public
statements that address operating performance, events or
developments that the Company expects or anticipates may occur in
the future are forward-looking statements. Factors that could cause
actual results to differ materially from these forward-looking
statements are discussed in the Company's Annual Report on Form
10-K for the year ended December 31,
2022, and its other Securities and Exchange Commission
filings. Future operating results will be based on various factors,
including actual industry production volumes, supply chain
disruptions, commodity prices, changes in foreign exchange rates,
the impact of restructuring actions and the Company's success in
implementing its operating strategy.
Information in this press release relies on assumptions in the
Company's sales backlog. The Company's sales backlog reflects
anticipated net sales from formally awarded new programs less lost
and discontinued programs. The Company enters into contracts with
its customers to provide production parts generally at the
beginning of a vehicle's life cycle. Typically, these contracts do
not provide for a specified quantity of production, and many of
these contracts may be terminated by the Company's customers at any
time. Therefore, these contracts do not represent firm orders.
Further, the calculation of the sales backlog does not reflect
customer price reductions on existing or newly awarded programs.
The sales backlog may be impacted by various assumptions embedded
in the calculation, including vehicle production levels on new
programs, foreign exchange rates and the timing of major program
launches. The forward-looking statements in this press release are
made as of the date hereof, and the Company does not assume any
obligation to update, amend or clarify them to reflect events, new
information or circumstances occurring after the date hereof.
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SOURCE Lear Corporation