Lear Corp. Cuts FY19 Outlook; Plans Additional Restructuring - Quick Facts

(RTTNews) - Lear Corp. (LEA) has reduced its full year guidance and announced plan to increase the 2019 restructuring program. The company said its first-half results were negatively impacted by continued declines in industry production volumes and other macroeconomic headwinds. Also, Lear has reported preliminary second-quarter results.

For fiscal 2019, Lear Corp. now anticipates net sales in a range of $19.8 billion - $20.3 billion, revised from prior outlook range of $20.9 billion - $21.7 billion. Core operating earnings are now expected to be in the range of $1.35 billion - $1.45 billion, updated from previous guidance range of $1.60 billion - $1.70 billion.

Lear Corp. intends to increase its 2019 restructuring program to $200 million from $140 million.

For the second-quarter, Lear projects sales to be approximately $5.0 billion, down 10% (or down 7% excluding items) year-on-year, and core operating earnings to be approximately 7.0% of sales. Free cash flow is projected to be approximately $265 million and share repurchases to total approximately $160 million.