Lear Corp. in Southfield, a global automotive supplier in seating and e-systems, today reported a 12 percent sales increase to $23.5 billion, a net income of $573 million, and an adjusted net income of $710 million for 2023.
In 2022, the company reported $328 million in net income and $523 million in adjusted net income.
Net income in the fourth quarter of 2023 was $127 million and adjusted net income of $177 million, compared to $118 million and $168 million, respectively, in the fourth quarter of 2022.
The company reported a sales increase in the fourth quarter of 2023 of 9 percent to $5.8 billion, compared to $5.4 billion in the fourth quarter of 2022. Overall, sales increased 12 percent to a record $23.5 billion, compared to $20.9 billion for the full year of 2022.
Core operating earnings increased 29 percent to $1.120 billion, compared to $871 million for the full year 2022. Earnings per share of $9.68 and adjusted earnings per share of $12.02, compared to $5.47 and $8.72, respectively, for the full year 2022.
Adjusted earnings per share increased 38 percent, reflecting higher earnings and the benefit of Lear’s share repurchase program. Net cash provided by operating activities of $1.249 billion and free cash flow of $638 million, compared to $1.021 billion and $383 million, respectively, for the full year 2022.
The company repurchased a total of $313 million of Lear shares and paid $182 million in dividends for the year. Cash and cash equivalents at year-end of $1.2 billion and total liquidity of $3.2 billion
Core operating earnings increased 9 percent to $288 million, compared to $265 million in the fourth quarter of 2022.
Earnings per share of $2.18 and adjusted earnings per share of $3.03, compared to $1.97 and $2.81, respectively, in the fourth quarter of 2022. Net cash provided by operating activities of $570 million and free cash flow of $377 million, compared to $537 million and $342 million, respectively, in the fourth quarter of 2022.
The end of 2023 also had the sixth consecutive quarter of year-over-year improvements in sales and core operating earnings.
Lear repurchased $175 million of Lear shares in the fourth quarter of 2023, the highest level of share repurchases in any quarter since the fourth quarter of 2018.
“Lear delivered record sales and strong earnings growth in 2023, reflecting the execution of our strategy and a recovering industry,” says Ray Scott, president and CEO of Lear. “During 2023, we completed the IGB acquisition, which added new product technology and scale to our growing thermal comfort systems business.”
Scott says the strong customer response to Lear’s thermal comfort systems plan should result in increased market share and higher margins in seating.
“As we enter 2024, we are expecting another year of increased revenue, earnings, and cash flow,” says Scott.
Lear executives predict global industry production will be 1 percent lower than in 2023.
The company predicts 2024 sales of about $24 billion to $24.6 billion. Core operating earnings are expected to be between $1.55 to $1.3 billion, with the company spending about $125 in restructuring costs.
