On October 26, 2023, Lear Corp (LEA, Financial), a global leader in automotive technology, released its third-quarter results for 2023. The company reported a 10% increase in sales to $5.8 billion, compared to $5.2 billion in the third quarter of 2022. Net income for the quarter was $133 million, a significant increase from $92 million in the same period last year. The company also reported a 14% increase in core operating earnings to $267 million.
Financial Highlights
The company's earnings per share for the quarter were $2.25, while adjusted earnings per share were $2.87, up from $1.54 and $2.33, respectively, in the third quarter of 2022. Net cash provided by operating activities was $404 million, and free cash flow was $251 million, compared to $252 million and $112 million, respectively, in the third quarter of 2022.
Lear Corp (LEA, Financial) also reported its fifth consecutive quarter of year-over-year margin improvement in E-Systems. The company was awarded more than twice as many J.D. Power 2023 U.S. Seat Quality and Satisfaction StudySM awards as any other seat supplier, with four best in segment and nine total awards.
Share Repurchase Program and Financial Outlook
During the third quarter of 2023, Lear Corp (LEA, Financial) repurchased 521,552 shares of its common stock for a total of $74.9 million. The company increased its full-year 2023 financial outlook, which now assumes a $350 million sales impact from industry disruptions related to the ongoing UAW strike, including approximately $325 million in the fourth quarter.
CEO Commentary
“Lear’s positive momentum continued in the third quarter with our fifth consecutive quarter of improved year-over-year results,” said Ray Scott, Lear’s President and Chief Executive Officer. “Our strategy to streamline our product portfolio and improve our financial performance in E-Systems is on track, as the division reported its highest operating margins in more than two years."
Conclusion
The Q3 2023 results show a strong performance by Lear Corp (LEA, Financial), with significant increases in sales and net income. The company's decision to increase its full-year 2023 financial outlook indicates confidence in its future performance. The ongoing share repurchase program also demonstrates the company's commitment to returning value to its shareholders.
Explore the complete 8-K earnings release (here) from Lear Corp for further details.
