Lear Corporation (NYSE:LEA) Q1 2024 Earnings Call Transcript

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For the full year in Seating, we see it at about three points of growth over market from flat in the first quarter. And the biggest driver of that is going to be the backlog as it scales up throughout the year, and then sort of the nonrecurrence of that unusual item with Audi on the Q5 where they lost a lot of volume in the first quarter, down for almost the third of the quarter.

Trevor Young: That’s very helpful. Thank you. And then as a follow-up, I just wanted to ask if you could describe the smoothness and/or efficiency of customer production in 1Q relative to recent quarters beyond those – beyond the impacts of the strike. And then just how you’re thinking about your expectation assumed in the guide for production smoothness as we move throughout the year?

Jason Cardew: Yes, it’s definitely improved from a year ago, and we saw a steady improvement throughout last year. And we’re seeing that continue into the first part of this year. We’re through four months now. And we’re definitely seeing an improvement in the stability of production globally. That’s not to say there aren’t going to be one-off issues. There have been some disruptions with a handful of customers for a variety of reasons, but it’s less impactful than what we saw last year and certainly two years ago.

Trevor Young: That’s helpful. Thank you.

Jason Cardew: You’re welcome.

Ray Scott: Thank you. Okay. Do you want to go ahead or we’ll end?

Jason Cardew: Yes, I think that’s the end of the formal presentation, and it’s probably just Lear employees that are still on the call. We want to take a second here to congratulate Ed Lowenfeld on his retirement. This is his last week at Lear after 20 – successful 20-year career here in Treasury and IR and HR. He’s done a little bit of everything for us, he’s been an important part of the team, important part of the finance organization and great support to me personally in the role, and I wish him all the best.

Ray Scott: Yes. Ed, as you’ve left Lear in a better place, your work has been outstanding. I’ve enjoyed working with you. I want to thank you for all your years and service here at Lear. It’s been great knowing you, and I wish you all the luck in your new retirement life.

Ed Lowenfeld: Thank you very much. I appreciate it. Lear has been a great place to work, and I see great things ahead.

Jason Cardew: And fortunately, we have great depth in our finance organization. And so we have two people. Ed’s shoes are so big, it took two to fill them. We’ve got Tim Brumbaugh being the primary interface with investors, taking over for Ed, and Marianne Vidershain, who is our Treasurer, will have overall responsibility for both treasury and the IR function. So congratulations.

Ray Scott: Congratulations guys. Lear team, thank you very much. Good quarter. Looking forward to continuing our success. Thank you.

Operator: Ladies and gentlemen, that does conclude today’s conference call and presentation. We do thank you for joining. You may now disconnect your lines.

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