Lear to accelerate restructuring after falling sales
18/07/2019
At the midpoint of Lear's 2019 outlook, sales are expected to be $20.1 billion, down 5% from 2018.
"Previously, we indicated that we anticipated an increase in industry production volumes in the second half of the year and an associated improvement in sales and earnings. We now believe general macroeconomic and industry factors will continue to put pressure on sales and earnings throughout the remainder of 2019," said Ray Scott, Lear's CEO.
"We are aggressively responding to the current environment. We have already undertaken significant restructuring actions and are currently developing a comprehensive operational and organisational plan designed to further reduce costs and improve profitability. We intend to increase our 2019 restructuring programme to $200 million.
"The additional $60 million in restructuring cost is intended to reduce capacity, improve our manufacturing footprint and organisational efficiency, and position our business for continued success in the future.”
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