SOUTHFIELD, Mich., July 26, 2017 /PRNewswire/ -- Lear
Corporation (NYSE: LEA), a leading global supplier of automotive
seating and electrical systems, today reported record sales and
earnings for the second quarter 2017. Highlights include:
- Sales of $5.1 billion, up 8% from
a year ago; up 10% excluding the impact of foreign exchange
- Net income of $312 million, up
10% from $282 million in the prior
year
- Core operating earnings of $439
million with a margin of 8.6%, up from 8.4% a year ago
- Earnings per share of $4.49 and
adjusted earnings per share of $4.39,
up 20% from the prior year
- Net cash provided by operating activities and free cash flow of
$566 million and $413 million, respectively
- Increased sales and improved margins in both business
segments
- Completed acquisition of Grupo
Antolin's seating business
- Increasing full year outlook based on strong first half
performance, the addition of Grupo
Antolin's seating business and our outlook for the rest of
the year
"In the second quarter, we continued to grow our sales faster
than industry production, improve our operating margins in both
segments and achieve record overall financial results.
Accordingly, we are increasing our full year outlook for sales,
earnings and free cash flow," said Matt
Simoncini, Lear's president and chief executive
officer. "With our unique product capabilities,
industry-leading cost structure and record backlog, we are well
positioned to continue to gain market share and grow our
earnings."
Second Quarter
Financial Results (in millions, except per share
amounts)
|
|
|
2017
|
|
2016
|
Reported
|
|
|
|
Sales
|
$5,123.2
|
|
$4,724.8
|
Net income
|
$311.9
|
|
$282.4
|
Earnings per
share
|
$4.49
|
|
$3.82
|
|
|
|
|
Adjusted
(1)
|
|
|
|
Core operating
earnings
|
$438.9
|
|
$398.5
|
Adjusted net
income
|
$304.9
|
|
$270.1
|
Adjusted earnings per
share
|
$4.39
|
|
$3.66
|
Sales in the second quarter increased 8% to $5.1 billion. Excluding the impact of
foreign exchange, sales were up 10%, with growth in all
regions. The increase reflects the addition of new business
in both of our product segments and the acquisition of Grupo Antolin's seating business.
Core operating earnings were $439
million, or 8.6% of sales, reflecting the increase in sales
and favorable operating performance. In the Seating segment,
margins and adjusted margins increased to 8.0% and 8.4% of sales,
respectively. In the E-Systems segment, margins and adjusted
margins increased to 14.2% and 14.9% of sales, respectively.
Earnings per share were up 18% to $4.49 per share. Adjusted earnings per
share were up 20% to $4.39 per share,
reflecting the improved operating earnings, a reduced share count
and a lower effective tax rate.
In the second quarter of 2017, net cash provided by operating
activities was $566 million, and free
cash flow was $413 million.
(1) For more
information regarding our non-GAAP financial measures, see
"Non-GAAP Financial Information" below.
Share Repurchase Program
During the second quarter of 2017, Lear repurchased
approximately 0.9 million shares of its common stock for a total of
$127 million. As of the end of the
second quarter, Lear had a remaining share repurchase authorization
of $746 million, which expires on
December 31, 2019, 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 42.9 million shares of its common stock for a
total of $3.3 billion at an average
price of $77.33 per share. This
represents a reduction of approximately 41% of our shares
outstanding at the time that we began the program.
Acquisition of Grupo Antolin's
Seating Business
On April 28, 2017, Lear completed
the acquisition of Grupo Antolin's
seating business, with operations in five countries in Europe and North Africa. Grupo Antolin's seating business is comprised of
just-in-time seat assembly, seat structures & mechanisms and
seat covers and is well positioned among the largest European
automakers, including Daimler, Peugeot Citroën, Renault Nissan and
Volkswagen.
Grupo Antolin's seating business
has modern facilities and a reputation for strong engineering and
product development capabilities, lean manufacturing and superior
quality. Grupo Antolin's
product capabilities, including flexible and light weight seat
designs, are an excellent complement to Lear's existing seating
business.
Full Year 2017 Financial Outlook
Lear is increasing its full year 2017 financial outlook for
sales, earnings and free cash flow based on our strong first half
performance, the addition of Grupo
Antolin's seating business and our outlook for the remainder
of the year.
The current outlook is based on a global industry production
assumption of 93.1 million vehicles, up 2% from 2016. On a
regional basis, vehicle production is forecasted to be 17.4 million
units in North America, down 2%,
22.9 million units in Europe and
Africa, up 3% and 26.0 million
units in China, up 1%.
Lear's financial outlook is based on an average exchange rate of
$1.12/Euro for the remainder of the
year.
Sales in 2017 are expected to be approximately $20 billion, and core operating earnings are
expected to be about $1.65
billion. Capital spending is expected to be
$560 million, up $10 million from our prior outlook primarily
reflecting the addition of Grupo
Antolin. Net cash provided by operating activities is
estimated to be $1.66 billion, and
free cash flow is forecast to be approximately $1.1 billion.
The Company's effective tax rate on an adjusted basis 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 $405
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.
Webcast Information
Lear will webcast a conference call to review the Company's
second quarter 2017 financial results and related matters on
July 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 August 9,
2017, with a Conference I.D. of 19652649.
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 (income) 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
(income) 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 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, 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.
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 statements contained or
incorporated in this press release or in any other public
statements that address operating performance, events or
developments that the Company expects or anticipates may occur in
the future are forward-looking statements. Factors that could
cause actual results to differ materially from these
forward-looking statements are discussed 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.
About Lear
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
156,000 employees located in 38 countries. Lear currently
ranks #151 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
|
|
|
|
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Month
|
|
|
Period
Ended
|
|
|
July
1,
|
|
July
2,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net sales
|
|
$
5,123.2
|
|
$
4,724.8
|
|
|
|
|
|
Cost of
sales
|
|
4,545.4
|
|
4,184.4
|
Selling, general and
administrative expenses
|
|
157.2
|
|
154.3
|
Amortization of
intangible assets
|
|
11.5
|
|
13.3
|
Interest
expense
|
|
21.4
|
|
20.3
|
Other (income)
expense, net
|
|
5.8
|
|
(23.5)
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
381.9
|
|
376.0
|
Income
taxes
|
|
73.3
|
|
101.0
|
Equity in net income
of affiliates
|
|
(18.4)
|
|
(19.5)
|
|
|
|
|
|
Consolidated net
income
|
|
327.0
|
|
294.5
|
Net income
attributable to noncontrolling interests
|
|
15.1
|
|
12.1
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
311.9
|
|
$
282.4
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
4.49
|
|
$
3.82
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
69.4
|
|
73.9
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Month
|
|
|
Period
Ended
|
|
|
July
1,
|
|
July
2,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net sales
|
|
$ 10,121.7
|
|
$
9,387.7
|
|
|
|
|
|
Cost of
sales
|
|
8,961.4
|
|
8,311.6
|
Selling, general and
administrative expenses
|
|
312.9
|
|
303.3
|
Amortization of
intangible assets
|
|
21.6
|
|
26.5
|
Interest
expense
|
|
42.2
|
|
41.4
|
Other (income)
expense, net
|
|
9.5
|
|
(15.0)
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
774.1
|
|
719.9
|
Income
taxes
|
|
162.4
|
|
199.2
|
Equity in net income
of affiliates
|
|
(33.8)
|
|
(36.3)
|
|
|
|
|
|
Consolidated net
income
|
|
645.5
|
|
557.0
|
Net income
attributable to noncontrolling interests
|
|
27.8
|
|
26.2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
617.7
|
|
$
530.8
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
8.84
|
|
$
7.11
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
69.9
|
|
74.7
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
1,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,166.7
|
|
$
1,271.6
|
Accounts
receivable
|
|
3,357.7
|
|
2,746.5
|
Inventories
|
|
1,127.4
|
|
1,020.6
|
Other
|
|
690.1
|
|
610.6
|
|
|
6,341.9
|
|
5,649.3
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
2,266.7
|
|
2,019.3
|
Goodwill
|
|
1,272.1
|
|
1,121.3
|
Other
|
|
1,356.5
|
|
1,110.7
|
|
|
4,895.3
|
|
4,251.3
|
|
|
|
|
|
Total
Assets
|
|
$
11,237.2
|
|
$
9,900.6
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Short-term
borrowings
|
|
$
3.9
|
|
$
8.6
|
Accounts payable and
drafts
|
|
3,202.9
|
|
2,640.5
|
Accrued
liabilities
|
|
1,693.5
|
|
1,497.6
|
Current portion of
long-term debt
|
|
42.0
|
|
35.6
|
|
|
4,942.3
|
|
4,182.3
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
1,877.1
|
|
1,898.0
|
Other
|
|
661.6
|
|
627.4
|
|
|
2,538.7
|
|
2,525.4
|
|
|
|
|
|
Equity
|
|
3,756.2
|
|
3,192.9
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
11,237.2
|
|
$
9,900.6
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
|
Supplemental
Data
|
|
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
July
1,
|
|
July
2,
|
|
|
|
|
2017
|
|
2016
|
|
|
Net
Sales
|
|
|
|
|
|
|
North
America
|
|
$
2,022.7
|
|
$
1,940.8
|
|
|
Europe and
Africa
|
|
2,033.6
|
|
1,923.1
|
|
|
Asia
|
|
875.9
|
|
737.0
|
|
|
South
America
|
|
191.0
|
|
123.9
|
|
|
Total
|
|
$
5,123.2
|
|
$
4,724.8
|
|
|
|
|
|
|
|
|
|
Content per
Vehicle1
|
|
|
|
|
|
|
North
America
|
|
$
453
|
|
$
422
|
|
|
Europe and
Africa
|
|
$
344
|
|
$
314
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
566.4
|
|
$
529.0
|
|
|
Capital
expenditures
|
|
(153.2)
|
|
(93.6)
|
|
|
Free cash
flow
|
|
$
413.2
|
|
$
435.4
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
104.6
|
|
$
94.5
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
311.9
|
|
$
282.4
|
|
|
Interest
expense
|
|
21.4
|
|
20.3
|
|
|
Other (income)
expense, net
|
|
5.8
|
|
(23.5)
|
|
|
Income
taxes
|
|
73.3
|
|
101.0
|
|
|
Equity in net income
of affiliates
|
|
(18.4)
|
|
(19.5)
|
|
|
Net income
attributable to noncontrolling interests
|
|
15.1
|
|
12.1
|
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
|
other (income)
expense
|
|
409.1
|
|
372.8
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
23.7
|
|
27.9
|
|
|
Acquisition
costs
|
|
1.1
|
|
-
|
|
|
Acquisition-related
inventory fair value adjustment
|
|
2.6
|
|
-
|
|
|
Other
|
|
2.4
|
|
(2.2)
|
|
|
Core operating
earnings
|
|
$
438.9
|
|
$
398.5
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
311.9
|
|
$
282.4
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
23.4
|
|
27.9
|
|
|
Acquisition
costs
|
|
1.1
|
|
-
|
|
|
Acquisition-related
inventory fair value adjustment
|
|
2.6
|
|
-
|
|
|
Gain related to
affiliate
|
|
-
|
|
(30.3)
|
|
|
Other
|
|
1.2
|
|
(2.8)
|
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(35.3)
|
|
(7.1)
|
|
|
Adjusted net income
attributable to Lear
|
|
$
304.9
|
|
$
270.1
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
69.4
|
|
73.9
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
4.49
|
|
$
3.82
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
4.39
|
|
$
3.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content per Vehicle
for 2016 has been updated to reflect actual production
levels.
|
|
|
|
|
|
|
|
|
|
2
|
See "Non-GAAP
Financial Information" included in this press release.
|
|
|
|
|
|
|
|
|
3
|
Reflects tax benefits
of $28.7 million related to the reversal of valuation allowances on
the deferred tax assets of certain foreign subsidiaries in 2017, as
well as the tax effect of restructuring costs and other special
items and 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
|
July
1,
|
|
July
2,
|
|
|
|
|
2017
|
|
2016
|
|
|
Net
Sales
|
|
|
|
|
|
|
North
America
|
|
$
4,011.9
|
|
$
3,866.9
|
|
|
Europe and
Africa
|
|
3,949.0
|
|
3,750.8
|
|
|
Asia
|
|
1,799.2
|
|
1,554.4
|
|
|
South
America
|
|
361.6
|
|
215.6
|
|
|
Total
|
|
$
10,121.7
|
|
$
9,387.7
|
|
|
|
|
|
|
|
|
|
Content per
Vehicle1
|
|
|
|
|
|
|
North
America
|
|
$
446
|
|
$
423
|
|
|
Europe and
Africa
|
|
$
330
|
|
$
315
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
845.3
|
|
$
817.6
|
|
|
Capital
expenditures
|
|
(274.0)
|
|
(181.7)
|
|
|
Free cash
flow
|
|
$
571.3
|
|
$
635.9
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
201.5
|
|
$
184.7
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding at end of Quarter3
|
|
68,829,689
|
|
72,253,226
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
617.7
|
|
$
530.8
|
|
|
Interest
expense
|
|
42.2
|
|
41.4
|
|
|
Other (income)
expense, net
|
|
9.5
|
|
(15.0)
|
|
|
Income
taxes
|
|
162.4
|
|
199.2
|
|
|
Equity in net income
of affiliates
|
|
(33.8)
|
|
(36.3)
|
|
|
Net income
attributable to noncontrolling interests
|
|
27.8
|
|
26.2
|
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
|
other (income)
expense
|
|
825.8
|
|
746.3
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
32.5
|
|
39.6
|
|
|
Acquisition
costs
|
|
2.7
|
|
-
|
|
|
Acquisition-related
inventory fair value adjustments
|
|
4.3
|
|
-
|
|
|
Other
|
|
5.1
|
|
(0.6)
|
|
|
Core operating
earnings
|
|
$
870.4
|
|
$
785.3
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
617.7
|
|
$
530.8
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
32.2
|
|
39.6
|
|
|
Acquisition
costs
|
|
2.7
|
|
-
|
|
|
Acquisition-related
inventory fair value adjustments
|
|
4.3
|
|
-
|
|
|
Gain related to
affiliate
|
|
-
|
|
(30.3)
|
|
|
Other
|
|
2.5
|
|
(1.5)
|
|
|
Tax impact of special
items and other net tax adjustments 4
|
|
(54.4)
|
|
(12.1)
|
|
|
Adjusted net income
attributable to Lear
|
|
$
605.0
|
|
$
526.5
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
69.9
|
|
74.7
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
8.84
|
|
$
7.11
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
8.66
|
|
$
7.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content per Vehicle
for 2016 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
|
Reflects tax benefits
of $28.7 million related to the reversal of valuation allowances on
the deferred tax assets of certain foreign subsidiaries and $15.8
million related to the change in the accounting for share-based
compensation in 2017, as well as the tax effect of restructuring
costs and other special items and 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
|
|
|
July
1,
|
|
July
2,
|
|
|
2017
|
|
2016
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
4,025.1
|
|
$
3,640.4
|
|
|
|
|
|
Segment
earnings
|
|
$
322.7
|
|
$
287.7
|
Costs related to
restructuring actions
|
|
13.0
|
|
18.5
|
Acquisition
costs
|
|
0.2
|
|
-
|
Acquisition-related
inventory fair value adjustment
|
|
2.6
|
|
-
|
Other
|
|
-
|
|
(4.0)
|
Adjusted segment
earnings
|
|
$
338.5
|
|
$
302.2
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.4%
|
|
8.3%
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$
1,098.1
|
|
$
1,084.4
|
|
|
|
|
|
Segment
earnings
|
|
$
156.3
|
|
$
151.4
|
Costs related to
restructuring actions
|
|
6.1
|
|
8.3
|
Other
|
|
1.2
|
|
1.2
|
Adjusted segment
earnings
|
|
$
163.6
|
|
$
160.9
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.9%
|
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
July
1,
|
|
July
2,
|
|
|
2017
|
|
2016
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
7,893.1
|
|
$
7,242.4
|
|
|
|
|
|
Segment
earnings
|
|
$
643.0
|
|
$
579.3
|
Costs related to
restructuring actions
|
|
19.7
|
|
25.7
|
Acquisition
costs
|
|
0.2
|
|
-
|
Acquisition-related
inventory fair value adjustments
|
|
4.3
|
|
-
|
Other
|
|
-
|
|
(4.0)
|
Adjusted segment
earnings
|
|
$
667.2
|
|
$
601.0
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.5%
|
|
8.3%
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$
2,228.6
|
|
$
2,145.3
|
|
|
|
|
|
Segment
earnings
|
|
$
321.2
|
|
$
301.2
|
Costs related to
restructuring actions
|
|
8.1
|
|
11.2
|
Other
|
|
2.4
|
|
2.4
|
Adjusted segment
earnings
|
|
$
331.7
|
|
$
314.8
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.9%
|
|
14.7%
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/lear-reports-record-second-quarter-2017-sales-and-earnings-and-increases-full-year-financial-outlook-300494126.html
SOURCE Lear Corporation