Lear Corp. saw first-quarter revenue and income slide due to inflation and supply chain problems as the supplier looks to restructure by reducing headcount, exiting underperforming segments and consolidating plants.
At the same time, Lear outperformed the industry in sales and stacked up new business in its seating and e-systems divisions as its competitors face the same financial headwinds.
The supplier posted adjusted net income of $108.1 million, down more than half from last year, on sales of $5.2 billion, a 3 percent year-over-year revenue decrease, according to its earnings report released Tuesday.
"We're not going to be the victim," CEO Ray Scott said on a call with investors. "I'm not going to sit here and hope that this half is better than the next half or this year is better …We've got to start operating in what's in front of us, and that's exactly what we're doing."
Lear has reduced global headcount by 7,700 since early last year, according to its quarterly presentation to investors. It is unclear how many of the reductions have taken place in Michigan. A company spokesman said a breakdown was not available.
The company also said Tuesday that it plans to exit its audio and lighting business — a $200 million-a-year product line — by ramping down over the next five years. The primary impact will be a factory closure in Europe.
The other piece of restructuring took place in South America, where a wire plant and JIT seating plant were consolidated. Scott said the success of that model has the company considering implementing it across its global footprint.