Lear Good Grasp of the Obvious

Lear Corporation (LEA) a leading global supplier of automotive seating systems, electrical distribution systems and electronics products, today announced it is withdrawing its full-year 2008 financial guidance as a result of further weakness in global automotive demand and overall industry uncertainty.

That’s good guys. Real good of you to state the absolutely obvious. Basically you have no idea of what to do. The conference call that you will hold to discuss the future is scheduled for Thursday, January 29, 2009 when you will lay out Q4 results which of course will be terrible. By then we will probably know if the Big 3 are still standing. Essentially you have something like $500 million in cash, negative cash generation and receivables from the Big 3 that will kill you.

Rather than talk about unprecedented economic events lets start thinking about what to do when the titanic finally goes down.