US-based Lear Corporation, a global automotive technology leader in seating and e-systems, has reported a 12 per cent year-on-year YoY increase in sales to $5.8 billion for the first quarter (Q1) of fiscal 2023 (FY23). Excluding the impact of commodities, foreign exchange and acquisitions, sales were up 14 per cent, indicating an uptick in production on key Lear platforms and the addition of new business across both business segments.

Sales growth over the market in the first quarter was 6 percentage points, driven by the impact of new business and favourable platform mix, the company said in a press release.

Core operating earnings in Q1 FY23 were $263 million, representing 4.5 per cent of sales, compared to $184 million, or 3.5 per cent of sales, in Q1 FY22. The increase in earnings resulted primarily from higher production on key Lear platforms and the addition of new business, which was partially offset by the impact of foreign exchange.

The seating segment had margins and adjusted margins of 6.4 per cent and 6.7 per cent of sales, respectively, in Q1 FY23, while the e-systems segment had margins and adjusted margins of 3 per cent and 3.5 per cent of sales, respectively.

Adjusted earnings per share were reported to be $2.78, reflecting a 54 per cent increase compared to the same period last year, primarily due to higher operating earnings. Meanwhile, earnings per share were $2.41.

Net income for the quarter was reported at $144 million, with adjusted net income of $166 million, compared to $49 million and $108 million, respectively, in Q1 FY22.

For FY23, the company expects its net sales to range between $21.2 billion and $22.2 billion. The predicted core operating earnings for the year are $875 million to $1.075 billion, and the adjusted EBITDA is expected to be between $1.475 billion and $1.675 billion. The company anticipates incurring restructuring costs of approximately $100 million. The estimated operating cash flow is between $1.075 billion to $1.225 billion, the release added.

"Lear started the year strong, delivering significant increases in revenue and earnings in the first quarter compared to last year and strong growth over market in both businesses. We expect our positive momentum to continue as recent business awards and strong backlog in both business segments will continue to drive above market growth,” said Ray Scott, Lear's president and chief executive officer.