Lear’s sales have been decreasing again. In 2019 fourth quarter, the US group, which supplies the most important car manufacturing companies with seats and electric systems, reached, in terms of sales, 4.8 billion dollars. Revenues have therefore dropped, compared to 4.9 billion dollars in the same period of 2018. Net profits amounted to 126 million dollars: last year, they had reached 212 million dollars. Adjusted net profits reached 161 million dollars, therefore declining considerably compared to 261 million dollars in 2018 fourth quarter. Allegedly, a “complicated macroeconomic and industrial scenario” has brought to such outcomes, as illustrated by the company’s top managers.
Throughout 2019, Lear’s revenues coming from sales amounted to 19.8 billion US dollars. They therefore dropped by 6.2% compared to 21.1 billion dollars in 2018. Net profits reached 754 million dollars, while adjusted net profits amounted to 866 million dollars. Likewise, they have been going down: in fact, in 2018 net profits amounted to 1.150 billion dollars, while adjusted net profits had reached 1.205 billion dollars.
“Considering the macroeconomic and industrial scenario, which proved rather complicated, Lear achieved sound financial accomplishments in 2019 – pointed out Ray Scott, Lear President and Chief Executive Officer –. A downturn, -6%, in industrial production has affected our financial performance. On top of that, a long-lasting labour strike, called on by our most important client, alongside the weakening of worldwide currencies compared to US dollar, also affected our business results”. “Throughout 2019, we invested over 1 billion dollars in new activities while focusing consistently on operating top-notch quality and efficiency enhancement – continued the manager –. Although we are still playing in a difficult scenario, we have confidence in our ability to carry out a profitable growth and create a rewarding cash flow. In doing so, long-term shareholders will benefit from a value increase”.