CFO Jeff Vanneste put the blame on the difficulty in predicting short-term changes in production volumes.
'It's a slippery pig right now; it's hard to catch,' he said in conference call on October 25. 'Production declines come quick, and they can come deep.'
The latest global production forecast for 2018 is 94.1 m cars, according to IHS Markit, Lear said. This represents an improvement from 93.4m in 2017, but is about 1% lower than IHS Markit's forecast in July.
In major markets, including China and Europe (including Africa), the latest automotive production forecast is 2% lower than previously expected. In North America, it is 1% lower than expected, the company said.
Accordingly, the company cut its sales forecast for 2018 to a range of $21 bn to $21.2 bn. At the middle of the range, this represents a cut of $800 m from Lear's previous guidance, but is still $633 m higher than 2017.
'The US economy remains very strong. Leading economic indicators are positive,' Scott added.
Seating, Lear's traditional business, still accounted for 75% of revenue in the third quarter, but Lear's E-Systems electronics segment is growing, to 25% in the third quarter, up from 22% a year ago.
The company said 35 -40 % of new business the company is winning is in electronics, which is a higher share than electronics represents in today's business mix..
This article was written by Jim Henry and first appeared in Automotive News.