Lear Corporation

Thank you for standing by and welcome to the Rear Corporation's first 2020 EARNs Conference Call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. And if you require any further assistance, please press star 0. And now I would like to hand the conference over to your speaker today, Ms. Alicia Davis, Senior Vice President, Investor Relations and Corporate Development. Thank you. Please go ahead, ma'am.

Thanks, Kat. Good morning, everyone, and thanks for joining us for LEAR's first quarter 2020 earnings call. We will begin today's call with prepared remarks from Ray Scott, LEAR President and CEO, and Jason Cardew, Senior Vice President and CFO. You can find a copy of the presentation that accompanies these remarks at ir.lear.com. Following the presentation, we will open the call for Q&A. Before Ray begins, I'd like to take this opportunity to remind you that as we conduct this call, we will be making forward-looking statements to assist you in understanding LEAR's expectations for the future. As detailed in our safe harbor statement on slide two, our actual results could differ materially from these forward-looking statements, due to many factors discussed in our latest 10-K and other periodic reports. I also want to remind you that during today's presentation, we will refer to non-GAAP financial metrics. You are directed to the slides in the appendix of our presentation for the reconciliation of non-GAAP items to the most directly comparable GAAP measures. The agenda for today's call is on slide three. Ray will begin with some introductory comments and provide an overview of the quarters. Jason then will review our first quarter financial results and outline the series of steps we have taken to preserve cash and maximize financial flexibility in the current environment. Finally, Ray will provide a business update and discuss our efforts related to employee health and safety, strategy, and the community. Following the formal presentation, we would be happy to take your questions. Now, I'd like to invite Ray to begin.

Thanks, Alicia. Good morning, everyone. Before I begin the formal presentation, I would love to say a few words about the current crisis. The COVID-19 pandemic has taken a tremendous toll on people around the globe. Our thoughts and prayers go out to those that have been impacted. We stand together with those on the front lines battling this horrible virus. I want to take a moment to acknowledge our employees around the world. This crisis has tested us all. And I want to thank our employees for their efforts and commitment during these unprecedented times. Okay, now if we could please turn to slide five. It has been a very challenging start to the year. Industry disruptions related to COVID-19 pandemic have impacted our operations in all of our major markets, and we expect additional challenges in the coming months. We have remained focused on controlling what we can and moving the business forward. We have a very talented and skilled senior management team, each of us with decades of industry experience. Most of us were here earlier during the 2008-2009 financial crisis. We learned valuable lessons from that time, but we also understand that what we are facing today is much more complex. We have a strong balance sheet, ample liquidity, a solid foundation in operational excellence, and a highly experienced management team. We are well positioned for the challenges. As a team, we have developed three near-term business priorities, ensuring the health and safety of our employees and aligning our operations with industry changes while remaining focused on the long-term strategic opportunities. We believe by executing on these priorities, we will successfully navigate the current crisis and emerge as an even stronger industry leader post-COVID-19. Before Jason begins, I'd like to provide a brief overview of the quarter. Earlier this morning, we released our first quarter 2020 financial results, a summary of which is shown on slide six. With sales of $4.5 billion in the quarter, we had growth over market of 11%. Excluding the impact of COVID-19, operating margins in both our seeding and e-system segments would have exceeded 8%, a solid performance by both divisions. We recently were recognized by Automotive News with a 2020 PACE Award for Zeebo Market. This is Lear's second consecutive PACE Award, a testament to our continued industry leadership as the PACE Award is recognized around the world as a benchmark for automotive supplier innovation. Now I'd like to invite Jason to provide a review of our financial results.