Lear reports Q3 adjusted EPS $2.89, consensus $2.63

Reports Q3 revenue $5.58B, consensus $5.57B. In the third quarter, global vehicle production was down 5% compared to a year ago, with North America down 5%, Europe down 6% and China down 3%. Global vehicle production was down 6% on a Lear (LEA) sales-weighted basis. “In the third quarter, Lear generated revenue that outperformed the industry by 3 percentage points globally, with outgrowth in both Seating and E-Systems,” said Ray Scott, Lear’s president and CEO. “We accelerated the pace of our share repurchases, allowing us to increase adjusted earnings per share despite lower industry volumes. The first ComfortFlexTM module, combining heat, ventilation and massage, launched with Volvo. In China, the relationships we have built with key customers are generating additional business wins. In Seating, we won several new awards with BYD, Xiaomi and Seres, and in E-Systems, we were awarded new business for multiple programs with the Dongfeng Group. While margins remain below our mid-term targets in each segment, we continue to make significant progress with the factors we control. I am confident that the innovative products we are developing, combined with the investments we are making in advanced manufacturing, will support revenue and earnings growth, strong cash flow generation and significant shareholder returns.”