and vehicle Thanks Ray. e-exchange the quarter. production Slide second XX for rates shows
of quarter production pandemic XXXX, by North America was and negatively During COVID in the second shutdowns. extended impacted Europe industry related
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shortages, last due reflected of quarter, While weeks several the it in into of and in our outlook the disruptions financial the continued May to customer extent the significant considerably second worsened downtime August. component
see with continuing the throughout the remainder environment starting improvement the a September, We in expect of gradual year. to improvements modest in production
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on of range future the disruptions. of is side, production on the primarily outcomes dependent announced On sales the extent
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our Our which and core reflects platform mix. of midpoint operating unfavorable million, outlook is higher the of commodity $XXX earnings the impact costs
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costs is also the higher outlook well by commodity year $XXX chemicals $XXX continued $X.XXX segments. partially net XXXX million. be The will for both million commodity as over shortages chain and commodity driven approximately impacted. recovery supply performance core to to of impact at offset costs including as and commodity from strong the down have across been of is company costs total impact year reflecting volumes in has The costs. resins. operating billion, lower steel, Transportation costs higher Our higher midpoint The higher forecasted for business operating economic be earnings board,
other commercial negotiations, to electrification costs alternative our in and work We continue suppliers sourcing. of commodity the with to our VAB and higher impact and customers leveraging mitigate through steel changes scale, the other
supply Slide Slide will that few next detailed we're challenges, is Lear's on demand factors very strong summarizes we remained rates XX shown inventory about optimistic the term significantly Despite near-term the low and will over driven Appendix. years. grow XX XXXX impact financial with levels, industry the Our outlook. coupled when longer years. the several outlook in production Global key record next financial expect the
Delta are to over time as the imbalances despite premiums supply variant, as We commodity also moderate recent the also anticipate enter costs as to we more diminish and COVID XXXX, addressed. should the demand uptick names we forefront electric in population seeing the opportunities gets will where are are increased provide global of penetration market The the the vaccinated. we seating additional of vehicles where premium leader. the at luxury
the to Our E-systems electrification comfort from benefit of content proliferation business higher and is to safety features. also positioned other and related
despite at Lear recent cash has vertical focus Looking and us strong allowed margins items and generate the integration can strong on are backlog the flow to challenges. control
in in development to We innovative enhance investment separate increased margins in increased segments new facilities. continuing our manufacturing and products of place have both integration, as vertical to ourselves leader in through excellence plans through operational
additional which and growth In margins. to both addition, inorganic segments opportunities in make provide higher will we have to investments business plans incremental drive
will talk sheet liquidity. our to about XX, and please I balance turn Now, where briefly Slide
share sheet repurchases. excess investments to both balance and our Lear returning time, remain generation in businesses free long-term and strong growth bolt-on positions and via to flow same quickly execute shareholders we and strategy. integration committed dividends support the vertical Our cash growth to At our innovation to acquisitions increase in capabilities execute and fully cash
I'll Now some Ray turn to it closing for thoughts. back
