Short answer
Lear Corp (LEA) filed its fiscal 2018 10-K annual report with the SEC on Feb 5, 2019. It reported revenue of $21.1B (+3.3% year over year) and net income of $1.1B.
- Top risk flagged: USMCA ratification uncertainty, with potential tariffs affecting Lear’s Mexico, Canada and US supply chains
FY2018 key financial metrics · XBRL
- Revenue
- $21.1B
- +3.3% YoY
- Net income
- $1.1B
- −12.5% YoY
- Operating margin
- 7.8%
- −0.0 pp YoY
- Gross margin
- 2.5%
- −0.3 pp YoY
- EPS (diluted)
- $17.22
- −7.4% YoY
- ROE
- 27.4%
- −4.3 pp YoY
- Operating cash flow
- $1.8B
- −0.2% YoY
Source: XBRL data from the Lear Corp (LEA) FY2018 10-K on SEC EDGAR. USD.
Lear Corp FY2018 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global supplier of complete automotive seating systems and vehicle electrical, electronic, connectivity and software architectures
- 2018 emphasis on electrification, connectivity and autonomy, including high-voltage systems, V2X, cybersecurity and vehicle positioning
- New or expanded offerings: INTU Seating, ConfigurE+ adaptive seats, Virtual CarKey and 11kW wireless EV charging
- Workforce 169,000, up from 165,000, with Asia employees rising to 33,700 from 29,800
- 2019-2021 sales backlog $3.35 billion, up 5%, with 71% Seating and 29% E-Systems
Management Discussion & Analysis
- Revenue $21.1B, up $0.7B or 3% YoY, despite $1,261M impact from lower key-platform production
- Gross margin 11.0% vs 11.2%; net income $1,150M vs $1,313M
- Best segment: Seating revenue $16,021.9M; E-Systems revenue $5,126.6M, up from $4,594.0M
- Operating cash flow $1,779.8M, capex $677.0M, buybacks $705M, dividends $0.70 per share
- Outlook: $3.35B 2019-2021 backlog; risks include production declines, tariffs, commodity costs and cybersecurity disruptions
Risk Factors
- USMCA ratification uncertainty, with potential tariffs affecting Lear’s Mexico, Canada and US supply chains
- Brexit exposure: 2018 sales of $1.3B in the UK and $6.1B in EU excluding the UK
- Sole-source Tier 2 suppliers, natural disasters and supplier financial distress threatening component availability
- Technology disruption from autonomous vehicles, ride sharing and non-traditional entrants, requiring rapidly evolving technologies
- $2.0B indebtedness, with LIBOR cessation after 2021 potentially increasing borrowing costs
Generated from the filing text; verify against the original. How to read a 10-K
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