- Lear Corp (NYSE:LEA) reported a third-quarter FY21 sales decline of 13% year-on-year, to $4.27 billion, missing the analyst consensus of $4.37 billion.
- Global vehicle production decreased 19% Y/Y with North America down 25%, Europe down 28%, and China down 16%.
- For the second straight quarter, industry volumes were significantly impacted by semiconductor shortages, the company noted.
- Selling, general and administrative expenses rose 10.6% Y/Y to $163.3 million.
- Core operating income for the quarter declined 70% to $98 million, with a margin of 2.3%.
- The company held $1.1 billion in cash and equivalents as of October 2, 2021. Cash provided by operating activities for the nine months totaled $503.2 million.
- Adjusted EPS of $0.53 missed the analyst consensus of $0.71.
- Outlook: Lear has cut the FY21 sales outlook to $18.8 billion - $19.2 billion (prior view $19.70 billion - $20.50 billion) versus the consensus of $19.36 billion.
- The company has also cut FY21 adjusted EBITDA to $1.31 billion - $1.41 billion (prior view $1.48 billion - $1.67 billion).
- Lear's reduced outlook reflects the impact of semiconductor and other component shortages that continue to impact industry volumes.
- Price Action: LEA shares are trading higher by 0.57% at $177.27 on the last check Tuesday.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
