Lear corporation has reported net income down 45% in the second quarter. Lear's results were negatively impacted by continued declines in industry production and adverse currency movements.
Lear reported Q2 sales of US$5bn, compared to US$5.6bn in the second quarter 2018. Net income in the period was US$183m – with adjusted net income of US$236m – compared to US$331m and US$330m, respectively, in the prior year. 'Core operating earnings' were put at US$352m, compared to US$471m in the second quarter of 2018.
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"We continue to face a challenging macroeconomic and industry environment. In the second quarter of 2019, global vehicle production was down more than 7% compared to last year, with China down 17% and Europe down 7%. Lear's financial results in the second quarter were negatively impacted by continued declines in industry production, a significant number of program changeovers, slower production ramp ups on new vehicles, and continued weakening of global currencies against the U.S. dollar," said Ray Scott, Lear's President and Chief Executive Officer.
"Despite the challenging industry backdrop, we have continued to demonstrate our strong execution capabilities, as evidenced by Seating's operating performance in the quarter. Though we believe additional challenges lie ahead, we will continue to focus on investing in profitable growth, further improving efficiencies through a comprehensive operational and organisational plan, and delivering superior value for our shareholders."
