Lear Corporation LEA shares are trading higher after the company reported second-quarter results.
Lear reported quarterly adjusted earnings per share of $3.60, beating the street view of $3.40. Revenues of $6.012 billion, missed the street view of $6.036 billion.
“We are executing our thermal comfort strategy, and, today, we are introducing ComfortFlex by Lear modular designs and the ComfortMax Seat by Lear technology,” said Ray Scott, Lear’s President and Chief Executive Officer.
In the second quarter, global vehicle production was down 1% compared to a year ago, with North America up 2%, Europe down 6% and China up 5%. Global vehicle production was down 1% on a Lear sales-weighted basis.
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In the second quarter of 2024, operating cash flow was $291 million, and free cash flow was $170 million.
In the second quarter, the total company registered growth over market of 3 percentage points, with 7 percentage points in E-Systems and 2 percentage points in Seating.
The company exited the quarter with cash and equivalents worth $950.3 million.
Meanwhile, following a nearly three-day strike, a union representing approximately 500 workers at a Lear factory in Missouri has reportedly reached a tentative agreement with the company.
This resolution allows General Motors Company GM to resume production of its midsize pickups and cargo vans, reported Detroit Free Press.
Lear spokesman Brian Corbett told the Detroit Free Press, “We are pleased to have reached a tentative agreement with the UAW at our Wentzville facility. We are focused on resuming normal operations.”
Outlook: Lear reduced its FY24 net sales forecast from $24 billion – $24.60 billion to $23.23 billion – $23.67 billion (estimate: $23.95 billion).
Price Action: LEA shares are trading higher by 4.73% to $121.98 at last check Thursday.
Image: Unsplash/ Lenny Kuhne
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