Lear Q4 Earnings: Net Income Soars to $118 Million
rear strains It fell 2.5% to $145.76 in afternoon trading.
The company has achieved a $1.8 billion backlog in its core seat business by 2025 and nearly $1 billion in its e-systems segment, which is poised to grow with the rise of EVs.
Lear had an unexpected success late last year, supplying just-in-time thermal comfort seats for a privately held North American automaker’s SUV platform. The contract calls for a new factory and a $25 million expansion, with production expected by the end of the year, executives said.
Leah declined to provide details of the new business.
More than 75% of the company’s seat backlog is for EVs, highlighting the industry’s rapid transition to electrification. More than half of the company’s e-systems business is for his EVs, and with increasing demand for content and wiring by OEMs, the segment has huge growth potential, executives said.
“As EVs accelerate, we’re in a very good position for both e-systems and seats based on the backlog we’ve seen and the percentage of wins we’ve had in the EV market,” said Scott. .
Suppliers faced about $335 million in headwinds last year related to production volatility, parts shortages, material and wage inflation. Cardew said about $30 million of that will be unwinding in his 2023, but improved margins, cost reductions and continued market negotiations will result in additional recoveries.
Scott said the shortage of microchips that has plagued the industry for the past two years is improving, but isn’t over yet. Scott said automaker customers indicated that supply issues would be resolved by the second half of the year.
“Even if the industry as a whole improves, there are regions that are short of certain chips,” Scott said. “We know more capacity will be online this year.”
https://www.autonews.com/earnings-reports/lear-q4-earnings-net-income-surges-118m Lear Q4 Earnings: Net Income Soars to $118 Million