Lear posts Q3 net income loss of US$27m

Lear has recorded a third-quarter internet cash flow loss of US$27m, even though product sales fell thirteen% to US$4.3bn, reflecting all over the world car or truck output falls similar to the world-wide semiconductor shortage.

Organization highlights:

• Entered into a definitive agreement to receive significantly all of Kongsberg Automotive’s Inside Convenience Division
• Greater revolving credit score facility to US$2bn and extended maturity to October, 2026
• Awarded much more than 2 times as lots of J D Ability 2021 US Seat Top quality and Satisfaction StudySM awards as any other seat supplier, with two greatest in section awards and 7 overall awards
• Signed agreement to build joint venture with Hu Lane Associate, a company of automotive connector products
• Signed agreement to build joint venture with Shinry Systems to develop abilities in on-board chargers for electric automobiles

“Our field proceeds to be noticeably impacted by COVID-19 and world-wide semiconductor shortages,” claimed Lear president and CEO, Ray Scott.

“While our product sales declined in the quarter as in comparison to final 12 months, reflecting the tough output natural environment, our product sales advancement outperformed world-wide car or truck output by 9 proportion factors, resulting from new business enterprise wins and our strong sector placement.

“During these tough periods, we continue to be concentrated on supporting our consumers and positioning our corporation to capitalise on alternatives when the field recovers. Final 7 days, we declared our strategy to receive significantly all of Kongsberg Automotive’s Inside Convenience Division, which will additional different Lear as the seat supplier with the most full part and sub-program abilities.

“And in Seating, we received much more JD Ability Seat Top quality awards than any other seating supplier. Our popularity as a leader in operational excellence, along with new systems furnishing added priceable characteristics, will generate new business enterprise wins and lucrative advancement in each business enterprise segments.”

On 28 October, Lear declared it experienced entered into a definitive agreement to receive significantly all of Kongsberg Automotive’s Inside Convenience Division. The acquisition will progress Lear’s vertical integration and develop its merchandise offerings to include things like specialised thermal convenience seating remedies that enhance car or truck overall performance and packaging.

Through the conditions of the deal, Lear will pay back EUR175m, on a hard cash and credit card debt free foundation.

The transaction, subject to regulatory approvals and other customary closing disorders and adjustments, is anticipated to close in the initial quarter of 2022.

https://www.lear.com/newsroom/lear-reviews-third-quarter-2021-outcomes