Lear Corp. (NYSE: LEA), a global automotive technology leader in Seating and E-Systems, stock fell 2.36% (As on July 13, 12:59:10 AM UTC-4, Source: Google Finance) after Exane BNP Paribas upgraded the stock to Neutral from Underperform and boosted the $117 price target to $140. The company in its 2021 Sustainability Report, featuring the company’s progress on its renewable energy strategy, innovative green products, supplier sustainability, and diversity, equity and inclusion (DEI) efforts. After announcing its climate change goals in 2020, Lear developed a robust strategy to help the company achieve 100% renewable energy for electric power consumed at its manufacturing plants by 2030. The goal has already been reached in Germany, Poland and the United Kingdom, representing approximately one-half of Lear’s electricity use in Europe. To build on this progress, Lear plans to use a combination of methods including partnering with energy utilities to procure renewable energy as well as on-site generation for its remaining global sites. With three Automotive News PACE Award-winning innovations in 2021, Lear is helping electric vehicles charge faster and drive farther. In fact, six out of eight key E-Systems launches in 2022 will include content on new electric vehicles. By 2026, 4 million electric vehicles are expected to rely on Lear’s new high-voltage connection systems as the main battery/vehicle interface. Additionally, Lear’s sustainable solutions include lightweight seating structures as well as renewable and recycled materials that divert waste from landfills and support a global circular economy.

Meanwhile, in the first quarter, global vehicle production decreased by 4% compared to a year ago, with Europe down 18%, North America down 2% and China up 8%. Global production decreased on a Lear sales-weighted basis by approximately 7%. Sales in the first quarter decreased 3% to $5.2 billion compared to a year ago. Sales growth over market in the first quarter was four percentage points, driven primarily by the impact of new business in both segments. Core operating earnings were $184 million, or 3.5% of sales, compared to $336 million, or 6.3% of sales, in 2021. The decrease in earnings resulted primarily from lower sales due to reduced production on key Lear platforms and higher commodity costs, which were partially offset by the addition of new business. Excluding the impact of higher commodity costs, the Company generated positive operating performance in both Seating and E-Systems.  In the Seating segment, margins and adjusted margins were 5.1% and 5.6% of sales, respectively.