Southfield, Michigan — Lear, which makes automotive seating and electrical components, generated sales of $10.2 bn in the first half of 2019. This is lower by 10% than the same period in 2018.
Core Operating Earnings across the business fell 24% and hit $730m the second quarter of 2019.
'We continue to face a challenging macroeconomic and industry environment,' said Lear CEO Ray Scott. 'In the second quarter of 2019, global vehicle production was down more than 7% compared to last year,' he continued. Production in China was down 17% and Europe down 7%.
The fall in car production in the second quarter was one of several causes of the decline. Program changeovers and slower production ramp ups on new vehicles slowed things down. The dollar's strength also added to the difficulties.
The company's seating business sales subsided by 9.89% between the second quarter of 2018 and 2019. They reached $7.7 bn in the first half of 2019. This compares with $8.6bn the first half of 2018.
At the same time, segment earnings in the division declined by 22.1%. They hit $535m the second quarter of 2019. This compares with $687m the 2018 period.
Looking ahead to the end of the year, Lear said, sales should be $20.1 bn, down 5% from 2018. Excluding the impact of foreign exchange and acquisitions, sales are likely to be down 2% year over year. Adjusted margins in the seating segment should be about 8.0%, said the company.
| Lear numbers H1 2019 ( $ m) | |||
|---|---|---|---|
| Group | 2019 | 2018 | Change % |
| Sales | 10,167 | 11,314 | -10% |
| Core Operating Earnings | 730 | 961 | -24% |
| Margin % | 7.2 | 8.5 | |
| Seating | |||
| Sales | 7753 | 8604 | -9.89 |
| Segment Earnings | 535 | 687 | -22.13 |
| Margin % | 16.7 | 26.9 | |
| E Systems | |||
| Sales | 2,415 | 2,710 | -10.89 |
| Segment Earnings | 213 | 365 | -41.64 |
| Margin % | 8.8 | 13.5 | |
| Source: Lear | |||
