Lear has recorded a third-quarter net income loss of US$27m, while sales fell 13% to US$4.3bn, reflecting worldwide vehicle production falls related to the global semiconductor shortage.
- Entered into a definitive agreement to acquire substantially all of Kongsberg Automotive’s Interior Comfort Division
- Increased revolving credit facility to US$2bn and extended maturity to October, 2026
- Awarded more than twice as many J D Power 2021 US Seat Quality and Satisfaction StudySM awards as any other seat supplier, with two best in segment awards and seven total awards
- Signed agreement to establish joint venture with Hu Lane Associate, a manufacturer of automotive connector products
- Signed agreement to establish joint venture with Shinry Technologies to expand capabilities in on-board chargers for electric vehicles
“Our industry continues to be significantly impacted by COVID-19 and global semiconductor shortages,” said Lear president and CEO, Ray Scott.
“While our sales declined in the quarter as compared to last year, reflecting the challenging production environment, our sales growth outperformed global vehicle production by nine percentage points, resulting from new business wins and our strong market position.
“During these challenging times, we remain focused on supporting our customers and positioning our company to capitalise on opportunities when the industry recovers. Last week, we announced our plan to acquire substantially all of Kongsberg Automotive’s Interior Comfort Division, which will further separate Lear as the seat supplier with the most complete component and sub-system capabilities.
“And in Seating, we won more JD Power Seat Quality awards than any other seating supplier. Our reputation as a leader in operational excellence, along with new technologies providing added priceable features, will drive new business wins and profitable growth in both business segments.”
On 28 October, Lear announced it had entered into a definitive agreement to acquire substantially all of Kongsberg Automotive’s Interior Comfort Division. The acquisition will advance Lear’s vertical integration and expand its product offerings to include specialised thermal comfort seating solutions that improve vehicle performance and packaging.
Through the terms of the deal, Lear will pay EUR175m, on a cash and debt free basis.
The transaction, subject to regulatory approvals and other customary closing conditions and adjustments, is expected to close in the first quarter of 2022.
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