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August 6, 2021

Lear swings back to Q2 profit

Profit booked in Q2 but chip shortage a problem.

By Graeme Roberts

Global vehicle production increased significantly in the second quarter of 2021 from a year ago, supplier Lear said, but Q2 industry volume declined 9% sequentially compared to Q1 2021.

Q2 2020 industry production was negatively impacted by extended pandemic-related shutdowns, and Q2 2021 industry production was impacted by component shortages, particularly of semiconductors.

Lear sales increased 95% to $4.8bn, compared to $2.4bn in Q2 2020, reflecting total company growth over market of 11%.

Net income of $175m and adjusted net income of $148m, compared to losses of $294m and $249m, respectively, in Q2 2020.

Operating earnings were $233m compared to the $248m loss a year ago.

“As expected, the second quarter was very challenging, given semiconductor supply issues that impacted the auto industry and led to significant production disruptions,” said Ray Scott, president and CEO.

“Industry demand remains extremely strong, and I’m confident that Lear will deliver profitable growth and sustained shareholder returns as the industry recovers from these unprecedented component shortages.”

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