It's hardly the most complex market equation in history: a slowdown in vehicle production equates to a decrease in the need for auto parts, putting
in serious danger.
The maker of seating and electrical equipment for vehicles swung to a loss in the first quarter and burned up $400 million in cash, as car companies idle their factories and sharply decrease production.
The company said it's in talks with lenders and potential financial partners to figure out a way to beef up capital, and it reached an agreement with lenders to further waive defaults on its main line of credit.
Lear recorded a loss of $264.8 million, or $3.42 a share, compared with a profit of $78.2 million, or $1.00, last year. It beat analysts low-ball of $1.73 a share for the quarter.
Revenue tumbled 44% to $2.2 billion.
The company had $1.2 billion in cash at the end of the first quarter, down from $1.6 billion at the end of the previous quarter.
Rightfully so, investors remain leery, as shares fell 3% to $1.36 in morning trading.
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