SOUTHFIELD, Mich., Jan. 26, 2017 /PRNewswire/ -- Lear Corporation
[NYSE: LEA], a leading global supplier of automotive seating and
electrical systems, today reported financial results for the fourth
quarter and full year of 2016. Highlights include:
Fourth Quarter 2016
- Sales of $4.6 billion, down 2%
from a year ago; up slightly excluding the impact of foreign
exchange and commodity prices
- Net income of $230 million and
adjusted net income of $270 million,
compared to $235 million and
$245 million, respectively, in the
prior year
- Record core operating earnings of $386
million, an increase of 7% from the prior year, with a
record margin of 8.3%, up from 7.6% a year ago
- Earnings per share of $3.24 and
adjusted earnings per share of $3.80,
up 6% and 19%, respectively, from the prior year
- Acquired AccuMED, a specialty fabric manufacturer
Full Year 2016
- Record sales of $18.6 billion, up
2% from a year ago; up 5% excluding the impact of foreign exchange
and commodity prices
- Net income of $975 million and
adjusted net income of $1.026
billion, compared to $746
million and $844 million,
respectively, in the prior year
- Record core operating earnings of $1.535
billion, an increase of 17% from the prior year, with a
record margin of 8.3%, up from 7.2% a year ago
- Record earnings per share of $13.33 and adjusted earnings per share of
$14.03, up 39% and 29%, respectively,
from the prior year
- Record net cash provided by operating activities and free cash
flow of $1.6 billion and $1.1 billion, respectively
- Entered into a strategic partnership with Tempronics for seat
heating and cooling
- Repurchased 5.8 million shares, or approximately 8% of the
shares outstanding at the beginning of the year
"We just completed our most successful year ever, as the
investments that we have made in our business are paying off.
We achieved record performance in all key financial metrics,
continued to improve our cost structure and strengthened our
product capabilities. We also continued to reward our
shareholders in 2016 with a 20% increase in our dividend, the
purchase of nearly six million of our shares outstanding and a free
cash flow yield of 11%," said Matt
Simoncini, Lear's president and chief executive
officer. "Over the last five years, we have delivered a total
return to our shareholders of 250%, twice the market average and
more than any of our peers. Going forward, I believe that we
are in the strongest overall competitive position in our
history. We have a record sales backlog, and we are uniquely
positioned to continue to deliver profitable growth and superior
total shareholder
returns."
Fourth Quarter
Financial Results
|
|
|
(in millions, except
per share amounts)
|
|
|
|
2016
|
2015
|
Reported –
|
|
|
Sales
|
$4,643.5
|
$4,724.6
|
Net
income
|
$229.9
|
$235.3
|
Earnings per
share
|
$3.24
|
$3.07
|
Adjusted
(1) –
|
|
|
Core operating
earnings
|
$385.6
|
$358.9
|
Adjusted net
income
|
$270.1
|
$245.2
|
Adjusted earnings per
share
|
$3.80
|
$3.20
|
In the Seating segment, sales were down 2% to $3.6 billion. Excluding the impact of
foreign exchange and commodity prices, sales were flat, reflecting
the addition of new business offset by decreased production volumes
on key platforms. Segment earnings were $287 million or 8.0% of sales. Adjusted segment
earnings were $297 million or 8.2% of
sales. Adjusted margins improved 60 basis points from a year ago,
reflecting favorable operating performance.
In the E-Systems segment, sales were flat at $1.0 billion. Excluding the impact of
foreign exchange and commodity prices, sales increased 2%,
reflecting the addition of new business and increased production
volumes on key platforms. Segment earnings were $150 million or 14.4% of sales. Adjusted segment
earnings were $154 million or 14.8%
of sales. Adjusted margins improved 70 basis points from a year
ago, reflecting the increase in sales and favorable operating
performance.
In the fourth quarter of 2016, net cash provided by operating
activities was $525 million, and free
cash flow was $297
million.
Full Year 2016
Financial Results
|
|
|
(in millions, except
per share amounts)
|
|
|
|
2016
|
2015
|
Reported
–
|
|
|
Sales
|
$ 18,557.6
|
$ 18,211.4
|
Net
income
|
$975.1
|
$745.5
|
Earnings per
share
|
$13.33
|
$9.59
|
Adjusted
(1) –
|
|
|
Core operating
earnings
|
$1,534.8
|
$1,310.2
|
Adjusted net
income
|
$1,026.3
|
$843.9
|
Adjusted earnings per
share
|
$14.03
|
$10.85
|
In the Seating segment, sales were up 2% to $14.4 billion. Excluding the impact of foreign
exchange and commodity prices, sales increased 5%, reflecting the
addition of new business. Segment earnings were $1,136 million or 7.9% of sales. Adjusted
segment earnings were $1,175 million
or 8.2% of sales. Margins increased 110 basis points from a
year ago, reflecting the increase in sales and favorable operating
performance.
In the E-Systems segment, sales were up 2% to $4.2 billion. Excluding the impact of
foreign exchange and commodity prices, sales increased 5%,
primarily reflecting the addition of new business and higher
production volumes on key platforms. Segment earnings were
$591 million or 14.1% of sales.
Adjusted segment earnings were $619
million or 14.7% of sales. Margins improved 90 basis
points from a year ago, reflecting the increase in sales and
favorable operating performance.
For the full year 2016, net cash provided by operating
activities was $1.619 billion, and
free cash flow was $1.091
billion.
(1)
|
For more information
regarding our non-GAAP financial measures, see "Non-GAAP Financial
Information" below.
|
Share Repurchase Program
During the fourth quarter of 2016, Lear repurchased
approximately 801,000 shares of its common stock for a total of
$101 million. As of the end of the
fourth quarter, Lear had a remaining share repurchase authorization
of $341 million, which expires on
December 31, 2017, and reflects
approximately 3% of Lear's total market capitalization at current
market prices.
Since initiating the share repurchase program in early 2011,
Lear has repurchased approximately 41 million shares of its common
stock for a total of $3.1 billion at
an average price of $74.51 per share.
This represents a reduction of approximately 39% of the
Company's shares outstanding at the time the program began.
AccuMED Acquisition
In December 2016, Lear acquired
AccuMED, a privately-held developer and manufacturer of specialty
fabrics. AccuMED was founded in 1974 and has headquarters in
North Carolina with core
manufacturing operations in the Dominican Republic. AccuMED
has an experienced management team, modern facilities with a
low-cost footprint and a reputation for superior quality and
innovation. Strategically, AccuMED provides innovative fabric
processing technology that will benefit Lear's automotive fabric
operations, and it adds critical mass to Lear's existing
non-automotive fabric products.
Full Year 2017 Financial Outlook
Lear's 2017 financial outlook is based on industry vehicle
production assumptions of 17.6 million units in North America, down 2% from the prior year,
22.6 million units in Europe and
Africa, up 1% from the prior year,
and 26.3 million units in China,
up 3% from the prior year. Lear's financial outlook is based
on an average full year exchange rate of $1.05/Euro.
Sales in 2017 are expected to be approximately $19.5 billion, and core operating earnings are
expected to be about $1.6
billion. Net cash provided by operating activities is
estimated to be $1.6 billion, and
capital spending is expected to be $550
million, resulting in free cash flow in excess of
$1.0 billion.
The Company's effective tax rate is expected to be approximately
26%. Adjusted net income is expected to be approximately
$1.1 billion.
Pretax operational restructuring costs are estimated to be
$65 million, and depreciation and
amortization expense is estimated to be $385
million.
Certain of the forward-looking financial measures above are
provided on a non-GAAP basis. The Company does not provide a
reconciliation of such forward-looking measures to the most
directly comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in
the United States ("GAAP") because
to do so would be potentially misleading and not practical given
the difficulty of projecting event driven transactional and other
non-core operating items in any future period. The magnitude of
these items, however, may be significant.
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),
"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 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, excluding the settlement of accounts
payable in conjunction with the acquisition of Eagle Ottawa, less
capital expenditures.
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, 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, 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 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.
Webcast Information
Lear will webcast a conference call to review the Company's
fourth quarter and full year 2016 financial results and related
matters on January 26, 2017, at
8:00 a.m. Eastern Time, through the
investor relations link at http://ir.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 February 9,
2017, with a Conference I.D. of 19652647.
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; currency controls and
the ability to economically hedge currencies; 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; 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; the anticipated departure of the
United Kingdom from the European
Union; and other risks described in the Company's Annual Report on
Form 10-K for the year ended December 31,
2015, as supplemented and updated by the Company's Quarterly
Report on Form 10-Q for the quarter ended July 2, 2016, 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 (NYSE: LEA) is one of the world's leading
suppliers of automotive seating and electrical distribution
systems. Lear serves every major automaker in the world, and Lear
content can be found on more than 400 vehicle nameplates.
Lear's world-class products are designed, engineered and
manufactured by a diverse team of approximately 150,000 employees
located in 37 countries. Lear currently ranks #154 on the
Fortune 500. Lear's headquarters are in Southfield, Michigan. Further
information about Lear is available at http://www.lear.com or
follow us on Twitter @LearCorporation.
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Month
|
|
|
Period
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net sales
|
|
$
4,643.5
|
|
$
4,724.6
|
|
|
|
|
|
Cost of
sales
|
|
4,131.4
|
|
4,233.9
|
Selling, general and
administrative expenses
|
|
165.0
|
|
139.7
|
Amortization of
intangible assets
|
|
11.3
|
|
13.0
|
Interest
expense
|
|
20.5
|
|
20.4
|
Other expense,
net
|
|
7.2
|
|
8.2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
308.1
|
|
309.4
|
Income
taxes
|
|
82.8
|
|
74.6
|
Equity in net income
of affiliates
|
|
(23.2)
|
|
(18.1)
|
|
|
|
|
|
Consolidated net
income
|
|
248.5
|
|
252.9
|
Net income
attributable to noncontrolling interests
|
|
18.6
|
|
17.6
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
229.9
|
|
$
235.3
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
3.24
|
|
$
3.07
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
71.1
|
|
76.6
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
Month
|
|
|
Period
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net sales
|
|
$
18,557.6
|
|
$
18,211.4
|
|
|
|
|
|
Cost of
sales
|
|
16,455.5
|
|
16,391.6
|
Selling, general and
administrative expenses
|
|
621.9
|
|
580.5
|
Amortization of
intangible assets
|
|
53.0
|
|
52.5
|
Interest
expense
|
|
82.5
|
|
86.7
|
Other expense,
net
|
|
6.4
|
|
68.6
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
1,338.3
|
|
1,031.5
|
Income
taxes
|
|
370.2
|
|
285.5
|
Equity in net income
of affiliates
|
|
(72.4)
|
|
(49.8)
|
|
|
|
|
|
Consolidated net
income
|
|
1,040.5
|
|
795.8
|
Net income
attributable to noncontrolling interests
|
|
65.4
|
|
50.3
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
975.1
|
|
$
745.5
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
13.33
|
|
$
9.59
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
73.1
|
|
77.8
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,271.6
|
|
$
1,196.6
|
Accounts
receivable
|
|
2,746.5
|
|
2,590.0
|
Inventories
|
|
1,020.6
|
|
947.6
|
Other
|
|
610.6
|
|
552.4
|
|
|
5,649.3
|
|
5,286.6
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
2,019.3
|
|
1,826.5
|
Goodwill
|
|
1,121.3
|
|
1,053.8
|
Other
|
|
1,110.7
|
|
1,238.9
|
|
|
4,251.3
|
|
4,119.2
|
|
|
|
|
|
Total
Assets
|
|
$
9,900.6
|
|
$
9,405.8
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Short-term
borrowings
|
|
$
8.6
|
|
$
-
|
Accounts payable and
drafts
|
|
2,640.5
|
|
2,504.4
|
Accrued
liabilities
|
|
1,497.6
|
|
1,312.1
|
Current portion of
long-term debt
|
|
35.6
|
|
23.1
|
|
|
4,182.3
|
|
3,839.6
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
1,898.0
|
|
1,931.7
|
Other
|
|
627.4
|
|
616.8
|
|
|
2,525.4
|
|
2,548.5
|
|
|
|
|
|
Equity
|
|
3,192.9
|
|
3,017.7
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
9,900.6
|
|
$
9,405.8
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
|
Supplemental
Data
|
|
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
Net
Sales
|
|
|
|
|
|
|
North
America
|
|
$
1,797.7
|
|
$
1,970.1
|
|
|
Europe and
Africa
|
|
1,676.4
|
|
1,728.8
|
|
|
Asia
|
|
1,002.0
|
|
921.3
|
|
|
South
America
|
|
167.4
|
|
104.4
|
|
|
Total
|
|
$
4,643.5
|
|
$
4,724.6
|
|
|
|
|
|
|
|
|
|
Content per
Vehicle1
|
|
|
|
|
|
|
North
America
|
|
$
410
|
|
$
433
|
|
|
Europe and
Africa
|
|
$
302
|
|
$
308
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
525.4
|
|
$
585.1
|
|
|
Capital
expenditures
|
|
(228.0)
|
|
(158.1)
|
|
|
Free cash
flow
|
|
$
297.4
|
|
$
427.0
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
94.8
|
|
$
90.4
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
229.9
|
|
$
235.3
|
|
|
Interest
expense
|
|
20.5
|
|
20.4
|
|
|
Other expense,
net
|
|
7.2
|
|
8.2
|
|
|
Income
taxes
|
|
82.8
|
|
74.6
|
|
|
Equity in net income
of affiliates
|
|
(23.2)
|
|
(18.1)
|
|
|
Net income
attributable to noncontrolling interests
|
|
18.6
|
|
17.6
|
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
|
other
expense
|
|
335.8
|
|
338.0
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
13.5
|
|
20.2
|
|
|
Pension settlement
charge
|
|
34.2
|
|
-
|
|
|
Acquisition and other
related costs
|
|
1.3
|
|
-
|
|
|
Other
|
|
0.8
|
|
0.7
|
|
|
Core operating
earnings
|
|
$
385.6
|
|
$
358.9
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
229.9
|
|
$
235.3
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
13.2
|
|
20.3
|
|
|
Pension settlement
charge
|
|
34.2
|
|
-
|
|
|
Acquisition and other
related costs
|
|
1.3
|
|
-
|
|
|
Other
|
|
0.6
|
|
0.7
|
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(9.1)
|
|
(11.1)
|
|
|
Adjusted net income
attributable to Lear
|
|
$
270.1
|
|
$
245.2
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
71.1
|
|
76.6
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
3.24
|
|
$
3.07
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.80
|
|
$
3.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content per Vehicle
for 2015 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 per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
Net
Sales
|
|
|
|
|
|
|
North
America
|
|
$
7,523.6
|
|
$
7,755.7
|
|
|
Europe and
Africa
|
|
7,051.8
|
|
6,756.1
|
|
|
Asia
|
|
3,444.6
|
|
3,235.5
|
|
|
South
America
|
|
537.6
|
|
464.1
|
|
|
Total
|
|
$
18,557.6
|
|
$
18,211.4
|
|
|
|
|
|
|
|
|
|
Content per
Vehicle1
|
|
|
|
|
|
|
North
America
|
|
$
422
|
|
$
443
|
|
|
Europe and
Africa
|
|
$
316
|
|
$
314
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
1,619.3
|
|
$
1,271.1
|
|
|
Settlement of
accounts payable in conjunction with acquisition of
|
|
|
|
|
|
|
Eagle
Ottawa
|
|
-
|
|
45.7
|
|
|
Capital
expenditures
|
|
(528.3)
|
|
(485.8)
|
|
|
Free cash
flow
|
|
$
1,091.0
|
|
$
831.0
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
378.2
|
|
$
347.8
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding at end of Quarter3
|
|
70,641,105
|
|
76,093,303
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
975.1
|
|
$
745.5
|
|
|
Interest
expense
|
|
82.5
|
|
86.7
|
|
|
Other expense,
net
|
|
6.4
|
|
68.6
|
|
|
Income
taxes
|
|
370.2
|
|
285.5
|
|
|
Equity in net income
of affiliates
|
|
(72.4)
|
|
(49.8)
|
|
|
Net income
attributable to noncontrolling interests
|
|
65.4
|
|
50.3
|
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
|
other
expense
|
|
1,427.2
|
|
1,186.8
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
69.9
|
|
95.2
|
|
|
Pension settlement
charge
|
|
34.2
|
|
-
|
|
|
Acquisition and other
related costs
|
|
1.3
|
|
10.9
|
|
|
Acquisition-related
inventory fair value adjustment
|
|
-
|
|
15.8
|
|
|
Other
|
|
2.2
|
|
1.5
|
|
|
Core operating
earnings
|
|
$
1,534.8
|
|
$
1,310.2
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
975.1
|
|
$
745.5
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
69.6
|
|
97.2
|
|
|
Pension settlement
charge
|
|
34.2
|
|
-
|
|
|
Acquisition and other
related costs
|
|
1.3
|
|
10.9
|
|
|
Acquisition-related
inventory fair value adjustment
|
|
-
|
|
15.8
|
|
|
Loss on redemption of
bonds
|
|
-
|
|
14.3
|
|
|
(Gain) loss related
to affiliate
|
|
(30.3)
|
|
1.8
|
|
|
Other
|
|
-
|
|
1.5
|
|
|
Tax impact of special
items and other net tax adjustments 4
|
|
(23.6)
|
|
(43.1)
|
|
|
Adjusted net income
attributable to Lear
|
|
$
1,026.3
|
|
$
843.9
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
73.1
|
|
77.8
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
13.33
|
|
$
9.59
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
14.03
|
|
$
10.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content per Vehicle
for 2015 has been updated to reflect actual production
levels.
|
|
|
|
|
|
|
|
|
|
|
2
|
See "Non-GAAP
Financial Information" included in this press release.
|
|
|
|
|
|
|
|
|
3
|
Calculated using
stock price at end of quarter.
|
|
|
|
|
|
|
|
|
4
|
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 margins)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
3,601.0
|
|
$
3,678.7
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
287.2
|
|
$
262.2
|
|
Costs related to
restructuring actions
|
|
10.2
|
|
16.5
|
|
Other
|
|
(0.7)
|
|
-
|
|
Adjusted segment
earnings
|
|
$
296.7
|
|
$
278.7
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.2%
|
|
7.6%
|
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
1,042.5
|
|
$
1,045.9
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
149.8
|
|
$
142.9
|
|
Costs related to
restructuring actions
|
|
3.3
|
|
4.4
|
|
Other
|
|
1.3
|
|
0.5
|
|
Adjusted segment
earnings
|
|
$
154.4
|
|
$
147.8
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.8%
|
|
14.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
14,356.7
|
|
$
14,098.5
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
1,136.0
|
|
$
907.0
|
|
Costs related to
restructuring actions
|
|
43.9
|
|
69.0
|
|
Acquisition and other
related costs
|
|
-
|
|
2.3
|
|
Acquisition-related
inventory fair value adjustment
|
|
-
|
|
15.8
|
|
Other
|
|
(4.7)
|
|
0.1
|
|
Adjusted segment
earnings
|
|
$
1,175.2
|
|
$
994.2
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.2%
|
|
7.1%
|
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
4,200.9
|
|
$
4,112.9
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
591.3
|
|
$
554.4
|
|
Costs related to
restructuring actions
|
|
23.1
|
|
14.0
|
|
Other
|
|
4.9
|
|
0.6
|
|
Adjusted segment
earnings
|
|
$
619.3
|
|
$
569.0
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.7%
|
|
13.8%
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lear-reports-record-2016-results-300397032.html
SOURCE Lear Corporation