SOUTHFIELD, Mich.,
Feb. 13, 2017 /PRNewswire/ -- Lear Corporation (NYSE:
LEA), a leading global supplier of automotive seating and
electrical systems, today announced that its Board of Directors has
authorized an increase in the Company's share repurchase
authorization to $1 billion and
extended the authorization period until December 31, 2019. In addition, the Board
increased by 67% the quarterly cash dividend on the Company's
common stock from $0.30 per share to
$0.50 per share. The next
dividend is payable on March 23, 2017
to shareholders of record at the close of business on March 3, 2017.
"The Lear Board of Directors is committed to delivering superior
returns to our shareholders," said Henry D.
G. Wallace, Lear's Non-Executive Chairman. "The shareholder
actions announced today demonstrate the confidence Lear's Board of
Directors has in the Company's outlook. The Board believes
that the Company's balanced strategy of investing in the business
and consistently returning cash to shareholders, while maintaining
a strong and flexible balance sheet, will allow Lear to continue to
create significant value for shareholders."
"The Company's strong operating performance, record financial
results and record sales backlog are allowing us to significantly
increase our quarterly cash dividend and continue our proven track
record of returning capital to our shareholders. The
investments we have made in our business have put the Company in
the strongest competitive position in our history. Lear is
extremely well positioned for future profitable growth and
success," said Matt Simoncini, Lear
President and Chief Executive Officer.
At the end of 2016, Lear had $341
million remaining on its share repurchase
authorization. Including today's action, Lear's total
available share repurchase authorization is $1 billion.
Since the Company began its share repurchase and dividend
programs in 2011, Lear has returned approximately $3.5 billion to shareholders, including the
repurchase of nearly 40% of the Company's shares outstanding.
In addition, Lear's total shareholder return over the last five
years was 250%, exceeding every peer shown in the Company's Annual
Report on Form 10-K and more than 2 ½ times the return for the
S&P 500.
Lear may implement share repurchases under the new share
repurchase authorization utilizing a variety of methods including
open market purchases, accelerated share repurchase programs and
structured repurchase transactions. Share repurchases are
subject to the Company's alternative uses of capital and prevailing
financial, market and industry conditions.
Lear's 2017 Annual Stockholder Meeting will be held on
May 18, 2017 at 9:00 a.m. Eastern Time, at the Company's
corporate headquarters, 21557 Telegraph Road, Southfield, Michigan 48033. The record
date for determining eligibility to vote at the 2017 Annual Meeting
is March 23, 2017.
About Lear Corporation
Lear Corporation (NYSE: LEA) was founded in Detroit in 1917 as American Metal
Products. In 2017, the Company will celebrate its 100th year
anniversary. Lear is one of the world's leading suppliers of
automotive seating systems and electrical distribution systems
(E-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.
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 impact of potential changes in
tax and trade policies in the United
States and related actions by countries in which the Company
does business; the anticipated changes in economic and other
relationships between the United
Kingdom and the European Union; and other risks described in
the Company's Annual Report on Form 10-K for the year ended
December 31, 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lear-increases-share-repurchase-authorization-to-1-billion-and-increases-quarterly-cash-dividend-from-030-to-050-per-share-300405691.html
SOURCE Lear Corporation