Lear Corporation LEA shares are trading lower on Tuesday after reporting first-quarter results and future plant closures in Europe.
The company reported first-quarter adjusted earnings per share of $3.18, beating the analyst consensus of $3.02.
In the first quarter, global vehicle production decreased by 1% compared to a year ago, with North America up 1%, Europe down 2%, and China up 5%. Global vehicle production was flat on a Lear sales-weighted basis.
Quarterly revenues of $5.995 billion, missing the analyst consensus of $6.01 billion.
Lear Corporation said it is accelerating momentum in thermal comfort with two component modularity projects launching in late 2024.
The company initiated validation work for its first complete seat module scheduled to launch in North America in 2026.
Operational restructuring charges and other special items totaled $74 million, primarily reflecting future plant closures in Europe to improve manufacturing cost structure in light of the lower production environment and impairment charges related to Fisker.
Cash and cash equivalents at quarter end were $930 million, and total liquidity was $2.9 billion.
Lear Corporation reiterated its full-year 2024 revenue outlook of $24.0 billion-24.60 billion versus the $24.43 billion estimate. The company sees adjusted EBITDA of $1.795 billion-$1.945 billion.
Price Action: LEA shares are trading lower by 5.04% to $130.32 on the last check Tuesday.
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