Optimism from Lear, despite covid, semiconductors and inflation
Automotive seating and leather manufacturer Lear Corporation has reported full-year revenues of $19.25 billion for 2021, an increase of 13% compared to the previous year.
The company said that global vehicle production increased by 3% in 2021 but was still “significantly impacted” by covid-19 and by global semiconductor shortages. Global production was flat in North America and down by 4% in Europe, but it increased by 5% in China.
The effects of the pandemic and of the semiconductor shortage hit particularly hard in the fourth quarter, with vehicle production declining in each of these three geographical markets, by 15%, 26% and 4% respectively. Lear said this had affected its fourth-quarter revenues, which showed a drop of 7% year on year to reach $4.9 billion.
Chief executive, Ray Scott, said the company expected industry production volumes to improve in 2022, in spite of ongoing uncertainty caused by the pandemic, continuing issues with semiconductors and inflationary pressures.
“I remain optimistic about Lear’s prospects,” Mr Scott said, “as we have a very strong backlog of new business launching over the next three years. In addition, consumer demand remains extremely robust and industry inventory levels remain historically low, indicating that the auto industry is primed for a sustained recovery in production volumes.”
