SOUTHFIELD, Mich., Oct. 24, 2014 /PRNewswire/ -- Lear Corporation
(NYSE: LEA), a leading global supplier of automotive seating and
electrical distribution systems, today reported record sales,
earnings and margins for the third quarter. Highlights
include:
- Sales of $4.2 billion, up 8% from
a year ago
- Core operating earnings of $251
million, up 22%
- Adjusted earnings per share of $1.93, up 33%
- Ninth consecutive quarter of year-over-year earnings
improvement
- Company operating margin of 5.9%, up 60 basis points, with
sales and margins up in both business segments
- Returned $119 million to
shareholders through share repurchases and dividends
- Announced agreement to acquire Eagle Ottawa, the world's
leading supplier of automotive leather
"We had our best third quarter ever," said Matt Simoncini, Lear's president and chief
executive officer. "Sales grew faster than industry
production, and we improved our margins in both business segments
on a year-over-year basis. The investments that we have been
making to improve our cost structure, increase our component
capabilities, and grow and strengthen both our business segments
are paying off. We are continuing to win new business in both
segments and in every region of the world. As we gain market
share, we remain focused on operational excellence and continuous
improvement to sustain our success."
Business Conditions
In the third quarter, global vehicle production increased 3%
from a year ago, reflecting primarily strong production growth in
China and North America.
Production was up 10% in China, 8%
in North America and 1% in
Europe & Africa.
Production was down 20% in South
America.
Third Quarter 2014 Financial Results
For the third quarter of 2014, Lear reported sales of
$4.2 billion, core operating earnings
of $251 million, net income of
$140 million and adjusted earnings
per share of $1.93. This
compares with sales of $3.9 billion,
core operating earnings of $207
million, net income of $113
million and adjusted earnings per share of $1.45 for the third quarter of 2013.
In the Seating segment, sales were up 10% to $3.2 billion, reflecting the addition of new
business and higher production on key platforms. Adjusted
segment earnings were $176 million or
5.5% of sales. Earnings increased 14% from last year,
primarily reflecting the increase in sales and favorable operating
performance.
The Electrical segment continues to report strong earnings
growth, driven by an industry leading cost structure and strong
operating performance. Adjusted segment earnings were
$139 million or a record 13.3% of
sales, marking our 20th consecutive quarter of
year-over-year margin improvement. Earnings increased 24%
from last year, reflecting favorable operating
performance.
In the third quarter of 2014, free cash flow was $145 million, and net cash provided by operating
activities was $237 million.
Reconciliations of core operating earnings to pretax income
before equity income, adjusted net income to net income
attributable to Lear, adjusted earnings per share to diluted net
income per share attributable to Lear, adjusted segment earnings to
reported segment earnings and free cash flow to net cash provided
by operating activities, in each case as determined in accordance
with accounting principles generally accepted in the United States (GAAP), are provided in the
attached supplemental data pages.
Share Repurchase Program
During the third quarter of 2014, Lear repurchased 1.0 million
shares of its common stock for a total of $103 million.
As of the end of the third quarter, we have a remaining share
repurchase authorization of $491
million, which expires in April
2016 and reflects approximately 7% of Lear's total market
capitalization at current market prices.
Since initiating the share repurchase program in early 2011,
Lear has repurchased 29.3 million shares of its common stock for a
total of $1.8 billion. This
represents a reduction of approximately 28% of our shares
outstanding at the time we began the program.
Eagle Ottawa Acquisition
Consistent with our strategy to make value enhancing
acquisitions, in August, Lear announced plans to acquire Eagle
Ottawa, the world's largest supplier of leather to the automotive
industry. The addition of Eagle Ottawa will further
strengthen Lear's global seating business, enhance Lear's position
as the industry leader in luxury and performance automotive seating
and complement Lear's existing capabilities in the design and
manufacturing of seat covers.
Simoncini added, "Eagle Ottawa adds design and development
resources, as well as technical expertise to our existing leather
capabilities. Eagle Ottawa will enhance the level of
craftsmanship, improve our overall cost structure and increase
opportunities for sales growth and diversification."
The transaction is expected to be accretive to earnings per
share by 5%, before synergies, for the first twelve months
following closing. We expect the transaction to close in the
first quarter of 2015, subject to customary conditions, including
regulatory approvals.
Full Year 2014 Financial Outlook
Lear has increased its full year 2014 earnings outlook,
reflecting strong year-to-date operating performance.
Our 2014 financial outlook is based on industry vehicle
production assumptions of 20.4 million units in Europe & Africa, 17.0 million units in North America and 21.3 million units in
China, all of which are in-line
with the prior outlook. Lear's financial guidance is based on
an average full year exchange rate of $1.33/Euro, down 3% from the prior outlook.
Sales in 2014 are expected to be approximately $17.7 billion, consistent with our prior guidance
despite a weakening Euro. Core operating earnings are now
expected to be in the range of $1,010 to
$1,040 million, up from the prior range of $975 to $1,025 million. Free cash flow is
expected to be approximately $450
million.
Pretax income before restructuring costs and other special items
is estimated to be in the range of $940 to
$970 million. Tax expense, excluding the impact of
restructuring costs and other special items, is expected to be in
the range of $270 to $285
million. Adjusted net income attributable to Lear is
expected to be in the range of $640 to $655
million.
Pretax operational restructuring costs are expected to be
approximately $100 million, up
$10 million from the prior outlook,
reflecting plant consolidations and other census related
actions. The outlook for capital spending and depreciation
and amortization expense is unchanged at approximately $450 million and $310
million, respectively.
Webcast Information
Lear will webcast a conference call to review the Company's
third quarter 2014 financial results and related matters on
October 24, 2014, at 8:00 a.m. Eastern Time, through the investor
relations link at http://www.lear.com. In addition, the
conference call can be accessed by dialing 1-800-789-4751
(domestic) or 1-973-200-3975 (international). The audio
replay will be available two hours following the call at
1-855-859-2056 (domestic) or 1-404-537-3406 (international) and
will be available until November 7,
2014, with a Conference I.D. of 62876057.
Non-GAAP Financial Information
In addition to the results reported in accordance with GAAP
included throughout this press release, the Company has provided
information regarding "pretax income before equity income,
interest, other expense, restructuring costs and other special
items" (core operating earnings or adjusted segment earnings),
"pretax income before restructuring costs and other special items,"
"adjusted net income attributable to Lear" (adjusted net income),
"adjusted diluted net income per share attributable to Lear"
(adjusted earnings per share), "tax expense excluding the impact of
restructuring costs and other special items" and "free cash flow"
(each, a non-GAAP financial measure). Other expense includes,
among other things, non-income related taxes, foreign exchange
gains and losses, gains and losses related to certain derivative
instruments and hedging activities, gains and losses on the
extinguishment of debt and gains and losses on the disposal of
fixed assets. Adjusted net income attributable to Lear and
adjusted earnings per share represent net income attributable to
Lear and diluted net income per share attributable to Lear,
respectively, adjusted for restructuring costs and other special
items, including the tax effect thereon. Free cash flow
represents net cash provided by operating activities less adjusted
capital expenditures. Adjusted capital expenditures represent
capital expenditures, net of related insurance proceeds.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position and results of
operations. In particular, management believes that core
operating earnings, pretax income before restructuring costs and
other special items, adjusted net income, adjusted earnings per
share and tax expense excluding the impact of restructuring costs
and other special items are useful measures in assessing the
Company's financial performance by excluding certain items that are
not indicative of the Company's core operating performance or that
may obscure trends useful in evaluating the Company's continuing
operating activities. Management also believes that these
measures are useful to both management and investors in their
analysis of the Company's results of operations and provide
improved comparability between fiscal periods. Management
believes that free cash flow is useful to both management and
investors in their analysis of the Company's ability to service and
repay its debt. Further, management uses these non-GAAP
financial measures for planning and forecasting future periods.
Core operating earnings, pretax income before restructuring
costs and other special items, adjusted net income, adjusted
earnings per share, tax expense excluding the impact of
restructuring costs and other special items and free cash flow
should not be considered in isolation or as a substitute for pretax
income before equity income, net income attributable to Lear,
diluted net income per share attributable to Lear, cash provided by
operating activities or other income statement or cash flow
statement data prepared in accordance with GAAP or as a measure of
profitability or liquidity. In addition, the calculation of
free cash flow does not reflect cash used to service debt and,
therefore, does not reflect funds available for investment or other
discretionary uses. Also, these non-GAAP financial measures,
as determined and presented by the Company, may not be comparable
to related or similarly titled measures reported by other
companies.
For reconciliations of these non-GAAP financial measures to the
most directly comparable financial measures calculated and
presented in accordance with GAAP, see the attached supplemental
data pages which, together with this press release, have been
posted on the Company's website through the investor relations link
at http://www.lear.com.
Given the inherent uncertainty regarding special items and other
expense in any future period, a reconciliation of forward-looking
financial measures to the most directly comparable financial
measures calculated and presented in accordance with GAAP is not
feasible. The magnitude of these items, however, may be
significant.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding anticipated financial results
and liquidity. The words "will," "may," "designed to,"
"outlook," "believes," "should," "anticipates," "plans," "expects,"
"intends," "estimates," "forecasts" and similar expressions
identify certain of these forward-looking statements. The Company
also may provide forward-looking statements in oral statements or
other written materials released to the public. All such
forward-looking statements contained or incorporated in this press
release or in any other public statements which address operating
performance, events or developments that the Company expects or
anticipates may occur in the future, including, without limitation,
statements related to business opportunities, awarded sales
contracts, sales backlog and ongoing commercial arrangements, or
statements expressing views about future operating results, are
forward-looking statements. Actual results may differ materially
from any or all forward-looking statements made by the
Company. Important factors, risks and uncertainties that may
cause actual results to differ materially from anticipated results
include, but are not limited to, general economic conditions in the
markets in which the Company operates, including changes in
interest rates or currency exchange rates; the financial condition
and restructuring actions of the Company's customers and suppliers;
changes in actual industry vehicle production levels from the
Company's current estimates; fluctuations in the production of
vehicles or the loss of business with respect to, or the lack of
commercial success of, a vehicle model for which the Company is a
significant supplier; disruptions in the relationships with the
Company's suppliers; labor disputes involving the Company or its
significant customers or suppliers or that otherwise affect the
Company; the outcome of customer negotiations and the impact of
customer-imposed price reductions; the impact and timing of program
launch costs and the Company's management of new program launches;
the costs, timing and success of restructuring actions; increases
in the Company's warranty, product liability or recall costs; risks
associated with conducting business in foreign countries; the
impact of regulations on the Company's foreign operations; the
operational and financial success of the Company's joint ventures;
competitive conditions impacting the Company and its key customers
and suppliers; disruptions to the Company's information technology
systems, including those related to cybersecurity; the cost and
availability of raw materials, energy, commodities and product
components and the Company's ability to mitigate such costs; the
outcome of legal or regulatory proceedings to which the Company is
or may become a party; the impact of pending legislation and
regulations or changes in existing federal, state, local or foreign
laws or regulations; unanticipated changes in cash flow, including
the Company's ability to align its vendor payment terms with those
of its customers; limitations imposed by the Company's existing
indebtedness and the Company's ability to access capital markets on
commercially reasonable terms; impairment charges initiated by
adverse industry or market developments; the Company's ability to
execute its strategic objectives; changes in discount rates and the
actual return on pension assets; costs associated with compliance
with environmental laws and regulations; the impact of new
regulations related to conflict minerals; developments or
assertions by or against the Company relating to intellectual
property rights; the Company's ability to utilize its net operating
loss, capital loss and tax credit carryforwards; global sovereign
fiscal matters and creditworthiness, including potential defaults
and the related impacts on economic activity, including the
possible effects on credit markets, currency values, monetary
unions, international treaties and fiscal policies; and other risks
described in the Company's Annual Report on Form 10-K for the year
ended December 31, 2013, its
Quarterly Report on Form 10-Q for the quarter ended June 28, 2014 and its other Securities and
Exchange Commission filings. Future operating results will be
based on various factors, including actual industry production
volumes, commodity prices and the Company's success in implementing
its operating strategy.
Information in this press release relies on assumptions in the
Company's sales backlog. The Company's sales backlog reflects
anticipated net sales from formally awarded new programs less lost
and discontinued programs. The calculation of the sales
backlog does not reflect customer price reductions on existing or
newly awarded programs. The sales backlog may be impacted by
various assumptions embedded in the calculation, including vehicle
production levels on new programs, foreign exchange rates and the
timing of major program launches.
The forward-looking statements in this press release are made as
of the date hereof, and the Company does not assume any obligation
to update, amend or clarify them to reflect events, new information
or circumstances occurring after the date hereof.
Lear Corporation is one of the world's leading suppliers of
automotive seating and electrical distribution systems. The
Company's world-class products are designed, engineered and
manufactured by a diverse team of approximately 122,000 employees
located in 36 countries. Lear's headquarters are in Southfield, Michigan, and Lear is traded on
the New York Stock Exchange under the symbol [LEA]. Further
information about Lear is available at lear.com.
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
27,
|
|
September
28,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Net sales
|
|
$
4,232.7
|
|
$
3,917.7
|
|
|
|
|
|
Cost of
sales
|
|
3,871.5
|
|
3,587.5
|
Selling, general and
administrative expenses
|
|
128.1
|
|
128.6
|
Amortization of
intangible assets
|
|
8.6
|
|
8.6
|
Interest
expense
|
|
15.7
|
|
17.5
|
Other expense,
net
|
|
11.1
|
|
16.8
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
197.7
|
|
158.7
|
Income
taxes
|
|
57.6
|
|
51.2
|
Equity in net income
of affiliates
|
|
(7.8)
|
|
(9.2)
|
|
|
|
|
|
Consolidated net
income
|
|
147.9
|
|
116.7
|
Net income
attributable to noncontrolling interests
|
|
7.8
|
|
3.9
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
140.1
|
|
$
112.8
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
1.72
|
|
$
1.38
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
81.4
|
|
81.8
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
27,
|
|
September
28,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
Net sales
|
|
$
13,177.6
|
|
$
11,977.9
|
|
|
|
|
|
Cost of
sales
|
|
12,076.8
|
|
10,997.6
|
Selling, general and
administrative expenses
|
|
402.8
|
|
386.1
|
Amortization of
intangible assets
|
|
25.4
|
|
25.8
|
Interest
expense
|
|
47.1
|
|
51.6
|
Other expense,
net
|
|
57.1
|
|
37.8
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
568.4
|
|
479.0
|
Income
taxes
|
|
163.1
|
|
130.2
|
Equity in net income
of affiliates
|
|
(29.0)
|
|
(27.1)
|
|
|
|
|
|
Consolidated net
income
|
|
434.3
|
|
375.9
|
Net income
attributable to noncontrolling interests
|
|
23.7
|
|
17.3
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
410.6
|
|
$
358.6
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
5.01
|
|
$
4.09
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
82.0
|
|
87.7
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
27,
|
|
December
31,
|
|
|
2014
|
|
2013
|
ASSETS
|
|
(Unaudited)
|
|
(Audited)
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
872.7
|
|
$
1,137.7
|
Accounts
receivable
|
|
2,843.0
|
|
2,278.3
|
Inventories
|
|
899.1
|
|
818.7
|
Other
|
|
718.2
|
|
687.8
|
|
|
5,333.0
|
|
4,922.5
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
1,614.4
|
|
1,587.2
|
Goodwill
|
|
740.2
|
|
757.2
|
Other
|
|
1,003.6
|
|
1,064.0
|
|
|
3,358.2
|
|
3,408.4
|
|
|
|
|
|
Total
Assets
|
|
$
8,691.2
|
|
$
8,330.9
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Accounts payable and
drafts
|
|
$
2,614.6
|
|
$
2,438.7
|
Accrued
liabilities
|
|
1,336.3
|
|
1,140.4
|
|
|
3,950.9
|
|
3,579.1
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
1,068.7
|
|
1,057.1
|
Other
|
|
515.8
|
|
545.2
|
|
|
1,584.5
|
|
1,602.3
|
|
|
|
|
|
Equity
|
|
3,155.8
|
|
3,149.5
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
8,691.2
|
|
$
8,330.9
|
Lear Corporation
and Subsidiaries
|
Supplemental
Data
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
27,
|
|
September
28,
|
|
|
|
2014
|
|
2013
|
|
Net
Sales
|
|
|
|
|
|
Europe and
Africa
|
|
$
1,616.5
|
|
$
1,472.8
|
|
North
America
|
|
1,679.2
|
|
1,503.1
|
|
Asia
|
|
735.4
|
|
692.9
|
|
South
America
|
|
201.6
|
|
248.9
|
|
Total
|
|
$
4,232.7
|
|
$
3,917.7
|
|
|
|
|
|
|
|
Content Per
Vehicle1
|
|
|
|
|
|
Europe and
Africa
|
|
$
356
|
|
$
325
|
|
North
America
|
|
$
408
|
|
$
394
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
236.7
|
|
$
164.2
|
|
Adjusted capital
expenditures
|
|
(91.7)
|
|
(102.8)
|
|
Free cash
flow
|
|
$
145.0
|
|
$
61.4
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
79.9
|
|
$
72.9
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
|
equity in net income
of affiliates
|
|
$
197.7
|
|
$
158.7
|
|
Interest
expense
|
|
15.7
|
|
17.5
|
|
Other expense,
net
|
|
11.1
|
|
16.8
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
other
expense
|
|
224.5
|
|
193.0
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
21.4
|
|
13.1
|
|
Acquisition and other
related costs
|
|
2.7
|
|
-
|
|
Other
|
|
2.8
|
|
0.4
|
|
Core operating
earnings
|
|
$
251.4
|
|
$
206.5
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
140.1
|
|
$
112.8
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
22.4
|
|
13.1
|
|
Acquisition and other
related costs
|
|
2.7
|
|
-
|
|
Gain related to
affiliate
|
|
(5.2)
|
|
-
|
|
Other
|
|
3.8
|
|
0.4
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(6.9)
|
|
(7.8)
|
|
Adjusted net income
attributable to Lear
|
|
$
156.9
|
|
$
118.5
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
81.4
|
|
81.8
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
1.72
|
|
$
1.38
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
1.93
|
|
$
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content Per Vehicle
for 2013 has been updated to reflect actual production
levels.
|
|
|
|
|
|
|
2
|
See "Non-GAAP
Financial Information" included in this press release.
|
|
|
|
|
|
|
3
|
Represents the tax
effect of restructuring costs and other special items, as well as
several discrete tax items. The identification of these tax
items is judgmental in nature, and their calculation is based on
various assumptions and estimates.
|
Lear Corporation
and Subsidiaries
|
Supplemental
Data
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and share and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
27,
|
|
September
28,
|
|
|
|
2014
|
|
2013
|
|
Net
Sales
|
|
|
|
|
|
Europe and
Africa
|
|
$
5,235.3
|
|
$
4,583.3
|
|
North
America
|
|
5,017.6
|
|
4,563.5
|
|
Asia
|
|
2,262.5
|
|
2,068.2
|
|
South
America
|
|
662.2
|
|
762.9
|
|
Total
|
|
$
13,177.6
|
|
$
11,977.9
|
|
|
|
|
|
|
|
Content Per
Vehicle1
|
|
|
|
|
|
Europe and
Africa
|
|
$
345
|
|
$
312
|
|
North
America
|
|
$
396
|
|
$
378
|
|
|
|
|
|
|
|
Free Cash
Flow2, 3
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
411.7
|
|
$
429.6
|
|
Adjusted capital
expenditures
|
|
(280.8)
|
|
(322.1)
|
|
Free cash
flow
|
|
$
130.9
|
|
$
107.5
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
232.6
|
|
$
208.3
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding at end of quarter4
|
|
80,678,468
|
|
81,768,811
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
|
equity in net income
of affiliates
|
|
$
568.4
|
|
$
479.0
|
|
Interest
expense
|
|
47.1
|
|
51.6
|
|
Other expense,
net
|
|
57.1
|
|
37.8
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
other
expense
|
|
672.6
|
|
568.4
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
90.0
|
|
47.2
|
|
Costs related to
proxy contest
|
|
-
|
|
3.0
|
|
Acquisition and other
related costs
|
|
5.3
|
|
-
|
|
Losses and
incremental costs related to the destruction of assets
|
|
-
|
|
7.3
|
|
Labor-related
litigation claims
|
|
-
|
|
4.9
|
|
Other
|
|
1.4
|
|
0.4
|
|
Core operating
earnings
|
|
$
769.3
|
|
$
631.2
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
410.6
|
|
$
358.6
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
91.0
|
|
47.2
|
|
Costs related to
proxy contest
|
|
-
|
|
3.0
|
|
Acquisition and other
related costs
|
|
5.3
|
|
-
|
|
Losses and
incremental costs related to the destruction of assets
|
|
-
|
|
7.3
|
|
Labor-related
litigation claims
|
|
-
|
|
4.9
|
|
Loss on redemption of
bonds
|
|
17.5
|
|
3.6
|
|
Gain related to
affiliate, net
|
|
(4.1)
|
|
-
|
|
Other
|
|
2.4
|
|
0.4
|
|
Tax impact of special
items and other net tax adjustments 5
|
|
(40.2)
|
|
(43.8)
|
|
Adjusted net income
attributable to Lear
|
|
$
482.5
|
|
$
381.2
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
82.0
|
|
87.7
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
5.01
|
|
$
4.09
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
5.88
|
|
$
4.35
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content Per Vehicle
for 2013 has been updated to reflect actual production
levels.
|
|
|
|
|
|
|
2
|
See "Non-GAAP
Financial Information" included in this press release.
|
|
|
|
|
|
|
3
|
Adjusted capital
expenditures represent capital expenditures of $280.8 million and
$329.2 million in 2014 and 2013, respectively, net of related
insurance proceeds of $7.1 million in 2013.
|
|
|
|
|
|
|
4
|
Calculated using
stock price at end of quarter.
|
|
|
|
|
|
|
5
|
Represents the tax
effect of restructuring costs and other special items, as well as
several discrete tax items. The identification of these tax
items is judgmental in nature, and their calculation is based on
various assumptions and estimates.
|
Lear Corporation
and Subsidiaries
|
Supplemental
Data
|
|
|
|
|
|
(Unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
September
27,
|
|
September
28,
|
|
|
2014
|
|
2013
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
3,188.4
|
|
$
2,891.7
|
|
|
|
|
|
Segment
earnings
|
|
$
154.9
|
|
$
142.8
|
Costs related to
restructuring actions
|
|
18.6
|
|
12.3
|
Other
|
|
2.6
|
|
-
|
Adjusted segment
earnings
|
|
$
176.1
|
|
$
155.1
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.5%
|
|
5.4%
|
|
|
|
|
|
Electrical
|
|
|
|
|
Net sales
|
|
$
1,044.3
|
|
$
1,026.0
|
|
|
|
|
|
Segment
earnings
|
|
$
136.7
|
|
$
111.6
|
Costs related to
restructuring actions
|
|
2.3
|
|
0.6
|
Adjusted segment
earnings
|
|
$
139.0
|
|
$
112.2
|
|
|
|
|
|
Adjusted segment
margins
|
|
13.3%
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
27,
|
|
September
28,
|
|
|
2014
|
|
2013
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
9,857.9
|
|
$
8,872.6
|
|
|
|
|
|
Segment
earnings
|
|
$
471.3
|
|
$
450.7
|
Costs related to
restructuring actions
|
|
73.3
|
|
34.0
|
Acquisition and other
related costs
|
|
2.4
|
|
-
|
Losses and
incremental costs related to the destruction of assets
|
|
-
|
|
7.3
|
Labor-related
litigation claims
|
|
-
|
|
4.9
|
Other
|
|
2.3
|
|
-
|
Adjusted segment
earnings
|
|
$
549.3
|
|
$
496.9
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.6%
|
|
5.6%
|
|
|
|
|
|
Electrical
|
|
|
|
|
Net sales
|
|
$
3,319.7
|
|
$
3,105.3
|
|
|
|
|
|
Segment
earnings
|
|
$
413.3
|
|
$
295.5
|
Costs related to
restructuring actions
|
|
7.1
|
|
7.8
|
Other
|
|
0.4
|
|
-
|
Adjusted segment
earnings
|
|
$
420.8
|
|
$
303.3
|
|
|
|
|
|
Adjusted segment
margins
|
|
12.7%
|
|
9.8%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lear-reports-record-third-quarter-sales-and-earnings-and-increases-2014-financial-outlook-194427922.html
SOURCE Lear Corporation