Revenue: Increased by 3% to $6 billion compared to the previous year.
Core Operating Earnings: Grew by 6% to $280 million.
Adjusted Earnings Per Share: Increased by 14% to $3.18, attributed to stronger operating performance and share repurchase program benefits.
Operating Cash Flow: Remained in line with the first quarter of the previous year.
Future Guidance
Global Vehicle Production: Assumption for guidance is flat compared to 2023 on a Lear sales-weighted basis.
Full-Year Outlook: Maintaining the same exchange rate assumptions: an average euro exchange rate of $1.09 per euro and an average Chinese RMB exchange rate of RMB 7.15 to the dollar.
Total Company Operating Margins: On track to achieve the midpoint of guidance of 5.1% for the full year.
Restructuring Costs: Guidance for the full year remains unchanged at $125 million, focused primarily on improving the manufacturing cost structure, especially in Europe through plant closures and footprint shifting to North African facilities.
Fourth Consecutive Year of Higher Sales and Operating Earnings: Forecasted despite expectations for flat industry volumes. Earnings per share will increase due to higher earnings and a lower share count from the share repurchase program.
Trends, Market Conditions, Sentiment
E-Systems Growth Over Market: 10 points of growth in the first quarter, with a full-year expectation to moderate to about 5 points growth over the market.
Restructuring and Automation: Ongoing restructuring, especially in Europe, to align operations with lower industry production levels and shift manufacturing costs by relocating facilities to North Africa. Investments in automation and digital tools (IDEA by Lear) to enhance competitive advantage and operational excellence.
Thermal Comfort Systems: Momentum in this area is accelerating with new launches and customer validations, indicating a strategy in vertical integration and product innovation.
Notable Quotes
Raymond Scott, President and CEO on Financial Metrics: “We started the year strong, delivering higher revenue and adjusted earnings in the first quarter compared to last year.”
Jason Cardew, Senior Vice President and CFO on Full Year Outlook: “Our first quarter results were consistent with our expectations, and we are maintaining the full year guidance range as outlined during our last earnings call.”
Raymond Scott on IDEA by Lear: “Accelerating the use of vision systems, robotics, and software will enhance our competitive advantage and enable innovation to further drive returns and improve margins.”
Jason Cardew on Cost Structure Efficiency: “There’s still a lot of runway there in terms of just an opportunity to reduce our manufacturing costs through shifting the footprint.”
Raymond Scott on Automation and Future Strategy: “Those that are in a much more flexible, better position when it comes to automation, and IDEA or Industry 4.0, are going to survive.”
