Lear down ~6% on 2019 guidance cut; reports interim Q2 results

|About: Lear Corporation (LEA)|By:, SA News Editor

Lear (LEA -6.1%) expects Q2 sales to be ~$5B, down 10% Y/Y with core operating margin of ~7% and expects free cash flow to be ~$265M

The Seating division performed well in the quarter against a challenging macroeconomic backdrop, with Q2 margins expected to exceed by ~60bps sequentially.

As anticipated, E-Systems' margins were lower sequentially primarily due to lower volumes on key programs.

The Company says that 1H was negatively impacted by continued declines in industry production volumes and other macroeconomic headwinds

Lowered 2019 net sales outlook to $19.8B - $20.3B from $20.9B - $21.7B; at the midpoint, sales are expected to be $20.1B,  down 5% Y/Y

Expects core operating earnings of ~$1,350M - $1,450M as compared to prior guidance of $1,600M - $1,700M

Lear will release complete Q2 financial results on July 26, 2019

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