Southfield, Michigan — Automotive seating company Lear had record sales of $21.5 bn in 2018, up 3% on the previous year, and plans to integrate electronics further into seating.
Although sales were up, net income fell by 12.4% to $1.15 bn in the financial year.
The business in China was 'challenging', according to CEO Ray Scott. He added that this situation will continue in the short- to medium-term.
Demand fell in Europe, partly driven by the emission tests scandals. On the upside he said that Lear is 'going through a great cadence of launches' in the US.
The company said that global automotive production fell by about 1% in 2018,
Lear said that, excluding the impact of foreign exchange, sales were up 2% in 2018. The sales increase reflects the addition of new business, and the acquisition of Grupo Antolin, which completed in May 2017.
The company also released details of its order backlog for the first time this year. Lear said it has orders worth $3.4 bn and that this is the largest in the company's history.
E-Systems represents approximately 30% of the backlog. The company said that this reflects market share gains and accelerating growth from vehicle electrification and connectivity.
Scott, speaking to Automotive News Europe, said he plans to bring his firm's seating and electronic businesses closer together in the future.
'The seat is in the first position for physical connectivity,' he said. 'You can personalise that seat, as opposed to a dashboard centre stack where everyone has to share.
'Think about the headrest: you can create a sound zone, and passengers can receive their own phone calls or text messages.
| Lear 2018 numbers ($ bn) | |||
|---|---|---|---|
| 2018 | 2017 | % Change | |
| Net sales | 21.15 | 20.47 | 3.3 |
| Net Income | 1.15 | 1.31 | -12.4 |
| Margin % | 5.4 | 6.4 | |
| Source: Lear | |||
