SOUTHFIELD, Mich., Oct. 25, 2017 /PRNewswire/ -- Lear Corporation
(NYSE: LEA), a leading global supplier of automotive seating and
electrical systems, today reported record results for the third
quarter 2017. Highlights include:
- Sales of $5.0 billion, up 10%
from a year ago
- Net income of $295 million, up
38% from a year ago; adjusted net income of $272 million, up 19% from a year ago
- Core operating earnings of $408
million, up 12% from a year ago; margin of 8.2%, up from
8.0% a year ago
- Earnings per share of $3.96 up
33% from a year ago
- Net cash provided by operating activities and free cash flow of
$339 million and $183 million, respectively
- Completed new credit agreement and refinancing of 2023
notes
- Increasing full year outlook for sales, earnings and free cash
flow
"We delivered our best ever third quarter results, with record
sales, earnings and free cash flow. As a result of our strong
year-to-date performance and our positive outlook for the fourth
quarter, we are again increasing our financial outlook for the full
year," said Matt Simoncini, Lear's
president and chief executive officer. "The investments that
we have made to improve our cost structure and product capabilities
will continue to drive market share gains and increasing
earnings. We are converting our earnings into cash at a high
level, which is allowing us to fund future growth and deliver
superior shareholder returns."
Third Quarter
Financial Results
(in millions, except
per share amounts)
|
|
|
2017
|
|
2016
|
Reported
|
|
|
|
Sales
|
$4,981.5
|
|
$4,526.4
|
Net income
|
$295.2
|
|
$214.4
|
Earnings per
share
|
$3.96
|
|
$2.98
|
|
|
|
|
Adjusted
(1)
|
|
|
|
Core operating
earnings
|
$407.5
|
|
$363.9
|
Adjusted net
income
|
$272.4
|
|
$229.7
|
Adjusted earnings per
share
|
$3.96
|
|
$3.19
|
Sales in the third quarter increased 10% to $5.0 billion. Excluding the impact of
foreign exchange, sales were up 8%. This increase reflects
the addition of new business in both of our product segments and
the acquisition of Grupo Antolin's
seating business, partially offset by lower production volumes on
key Lear platforms, primarily in North America.
Core operating earnings were up $44
million to $408 million, or 8.2% of sales, primarily
reflecting the increase in sales. In the Seating segment,
margins and adjusted margins were 7.7% and 8.1% of sales,
respectively. In the E-Systems segment, margins and adjusted
margins were 14.0% and 14.4% of sales, respectively.
Earnings per share were up 33% to $3.96 per share. Adjusted earnings per
share were up 24% to $3.96 per share,
reflecting the improved operating earnings, a reduced share count
and a lower effective tax rate.
In the third quarter of 2017, net cash provided by operating
activities was $339 million, and free
cash flow was $183 million.
(1) For more information regarding
our non-GAAP financial measures, see "Non-GAAP Financial
Information" below.
Share Repurchase Program
During the third quarter of 2017, Lear repurchased approximately
0.5 million shares of its common stock for a total of $78 million. As of the end of the third quarter,
Lear had a remaining share repurchase authorization of $668 million, which expires on December 31, 2019, and reflects approximately 6%
of Lear's total market capitalization at current market
prices.
Since initiating the share repurchase program in early 2011,
Lear has repurchased 43.4 million shares of its common stock for a
total of $3.4 billion at an average
price of $78.18 per share. This
represents a reduction of approximately 41% of our shares
outstanding at the time that we began the program.
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 year-to-date
performance and our outlook for the remainder of the year.
Sales in 2017 are expected to be approximately $20.4 billion, up $400
million from the prior outlook, and core operating earnings
are expected to be about $1,700
million, up $50 million.
Net cash provided by operating activities is estimated to be
$1,735 million, and free cash flow is
expected to be approximately $1,150
million, up $50
million.
The Company's effective tax rate on an adjusted basis is
expected to be approximately 25%. Adjusted net income is
expected to be approximately $1,150
million.
Pretax operational restructuring costs are estimated to be
$65 million, capital expenditures are
expected to be $585 million and
depreciation and amortization expense is estimated to be
$420 million.
The current outlook is based on a global industry production
assumption of 93.4 million vehicles, up 2% from 2016. On a
regional basis, vehicle production is forecasted to be 17.2 million
units in North America, down 4%,
23.0 million units in Europe and
Africa, up 3% and 26.1 million
units in China, up 1%.
Lear's financial outlook is based on an average exchange rate of
$1.12/Euro for the
year.
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
third quarter 2017 financial results and related matters on
October 25, 2017, at 9:00 a.m. Eastern Time, through the investor
relations link at 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 until November 8, 2017 at 1-855-859-2056 (domestic) or
1-404-537-3406 (international) with a Conference I.D. of
58073010.
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 available to Lear
common stockholders" (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, losses on extinguishment of debt and gains
and losses on the disposal of fixed assets. Adjusted net
income represents net income attributable to Lear adjusted for
restructuring costs and other special items, including the tax
effect thereon. Adjusted earnings per share represents
diluted net income per share available to Lear common stockholders
adjusted for the redeemable noncontrolling interest adjustment,
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 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 was founded in Detroit in 1917 as American Metal
Products. In 2017, the Company is celebrating its 100th year
anniversary. Lear is one of the world's leading suppliers of
automotive seating systems and electrical 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 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
|
|
|
September
30,
|
|
October
1,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net sales
|
|
$
4,981.5
|
|
$
4,526.4
|
|
|
|
|
|
Cost of
sales
|
|
4,425.6
|
|
4,012.5
|
Selling, general and
administrative expenses
|
|
158.2
|
|
153.6
|
Amortization of
intangible assets
|
|
12.5
|
|
15.2
|
Interest
expense
|
|
21.7
|
|
20.6
|
Other (income)
expense, net
|
|
(21.8)
|
|
14.2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
385.3
|
|
310.3
|
Income
taxes
|
|
77.8
|
|
88.2
|
Equity in net income
of affiliates
|
|
(7.5)
|
|
(12.9)
|
|
|
|
|
|
Consolidated net
income
|
|
315.0
|
|
235.0
|
Net income
attributable to noncontrolling interests
|
|
19.8
|
|
20.6
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
295.2
|
|
$
214.4
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share available to Lear
|
|
|
|
|
common
stockholders
|
|
$
3.96
|
|
$
2.98
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
68.8
|
|
72.1
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Month
|
|
|
Period
Ended
|
|
|
September
30,
|
|
October
1,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
Net sales
|
|
$
15,103.2
|
|
$
13,914.1
|
|
|
|
|
|
Cost of
sales
|
|
13,387.0
|
|
12,324.1
|
Selling, general and
administrative expenses
|
|
471.1
|
|
456.9
|
Amortization of
intangible assets
|
|
34.1
|
|
41.7
|
Interest
expense
|
|
63.9
|
|
62.0
|
Other income,
net
|
|
(12.3)
|
|
(0.8)
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
1,159.4
|
|
1,030.2
|
Income
taxes
|
|
240.2
|
|
287.4
|
Equity in net income
of affiliates
|
|
(41.3)
|
|
(49.2)
|
|
|
|
|
|
Consolidated net
income
|
|
960.5
|
|
792.0
|
Net income
attributable to noncontrolling interests
|
|
47.6
|
|
46.8
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
912.9
|
|
$
745.2
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share available to Lear
|
|
|
|
|
common
stockholders
|
|
$
12.80
|
|
$
10.10
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
69.5
|
|
73.8
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,253.7
|
|
$
1,271.6
|
Accounts
receivable
|
|
3,357.9
|
|
2,746.5
|
Inventories
|
|
1,232.9
|
|
1,020.6
|
Other
|
|
718.5
|
|
610.6
|
|
|
6,563.0
|
|
5,649.3
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
2,378.1
|
|
2,019.3
|
Goodwill
|
|
1,387.1
|
|
1,121.3
|
Other
|
|
1,383.8
|
|
1,110.7
|
|
|
5,149.0
|
|
4,251.3
|
|
|
|
|
|
Total
Assets
|
|
$
11,712.0
|
|
$
9,900.6
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Short-term
borrowings
|
|
$
1.8
|
|
$
8.6
|
Accounts payable and
drafts
|
|
3,176.0
|
|
2,640.5
|
Accrued
liabilities
|
|
1,706.2
|
|
1,497.6
|
Current portion of
long-term debt
|
|
9.0
|
|
35.6
|
|
|
4,893.0
|
|
4,182.3
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
1,953.0
|
|
1,898.0
|
Other
|
|
691.0
|
|
627.4
|
|
|
2,644.0
|
|
2,525.4
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
147.7
|
|
-
|
|
|
|
|
|
Equity
|
|
4,027.3
|
|
3,192.9
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
11,712.0
|
|
$
9,900.6
|
Lear Corporation
and Subsidiaries
|
Supplemental
Data
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
October
1,
|
|
|
|
2017
|
|
2016
|
|
Net
Sales
|
|
|
|
|
|
North
America
|
|
$
1,821.3
|
|
$
1,859.0
|
|
Europe and
Africa
|
|
2,024.4
|
|
1,624.6
|
|
Asia
|
|
939.0
|
|
888.2
|
|
South
America
|
|
196.8
|
|
154.6
|
|
Total
|
|
$
4,981.5
|
|
$
4,526.4
|
|
|
|
|
|
|
|
Content per
Vehicle1
|
|
|
|
|
|
North
America
|
|
$
456
|
|
$
428
|
|
Europe and
Africa
|
|
$
393
|
|
$
336
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
339.0
|
|
$
276.3
|
|
Capital
expenditures
|
|
(156.2)
|
|
(118.6)
|
|
Free cash
flow
|
|
$
182.8
|
|
$
157.7
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
111.7
|
|
$
98.7
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
295.2
|
|
$
214.4
|
|
Interest
expense
|
|
21.7
|
|
20.6
|
|
Other (income)
expense, net
|
|
(21.8)
|
|
14.2
|
|
Income
taxes
|
|
77.8
|
|
88.2
|
|
Equity in net income
of affiliates
|
|
(7.5)
|
|
(12.9)
|
|
Net income
attributable to noncontrolling interests
|
|
19.8
|
|
20.6
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
other (income)
expense
|
|
385.2
|
|
345.1
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
18.1
|
|
16.8
|
|
Acquisition
costs
|
|
0.8
|
|
-
|
|
Acquisition-related
inventory fair value adjustment
|
|
0.7
|
|
-
|
|
Other
|
|
2.7
|
|
2.0
|
|
Core operating
earnings
|
|
$
407.5
|
|
$
363.9
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
Net income available
to Lear common shareholders
|
|
$
272.5
|
|
$
214.4
|
|
Redeemable
noncontrolling interest
|
|
22.7
|
|
-
|
|
Net income
attributable to Lear
|
|
295.2
|
|
214.4
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
17.3
|
|
16.8
|
|
Acquisition
costs
|
|
0.8
|
|
-
|
|
Acquisition-related
inventory fair value adjustment
|
|
0.7
|
|
-
|
|
Loss on
extinguishment of debt
|
|
21.2
|
|
-
|
|
Gain related to
affiliate
|
|
(54.2)
|
|
-
|
|
Other
|
|
5.4
|
|
0.9
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(14.0)
|
|
(2.4)
|
|
Adjusted net income
attributable to Lear
|
|
$
272.4
|
|
$
229.7
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
68.8
|
|
72.1
|
|
|
|
|
|
|
|
Diluted net income
per share available to Lear
|
|
|
|
|
|
common
stockholders
|
|
$
3.96
|
|
$
2.98
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.96
|
|
$
3.19
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
Represents 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
October
1,
|
|
|
|
2017
|
|
2016
|
|
Net
Sales
|
|
|
|
|
|
North
America
|
|
$
5,833.2
|
|
$
5,725.9
|
|
Europe and
Africa
|
|
5,973.4
|
|
5,375.4
|
|
Asia
|
|
2,738.2
|
|
2,442.6
|
|
South
America
|
|
558.4
|
|
370.2
|
|
Total
|
|
$
15,103.2
|
|
$
13,914.1
|
|
|
|
|
|
|
|
Content per
Vehicle1
|
|
|
|
|
|
North
America
|
|
$
449
|
|
$
425
|
|
Europe and
Africa
|
|
$
349
|
|
$
321
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
1,184.3
|
|
$
1,093.9
|
|
Capital
expenditures
|
|
(430.2)
|
|
(300.3)
|
|
Free cash
flow
|
|
$
754.1
|
|
$
793.6
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
313.2
|
|
$
283.4
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding at end of Quarter3
|
|
68,544,213
|
|
71,209,178
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
912.9
|
|
$
745.2
|
|
Interest
expense
|
|
63.9
|
|
62.0
|
|
Other income,
net
|
|
(12.3)
|
|
(0.8)
|
|
Income
taxes
|
|
240.2
|
|
287.4
|
|
Equity in net income
of affiliates
|
|
(41.3)
|
|
(49.2)
|
|
Net income
attributable to noncontrolling interests
|
|
47.6
|
|
46.8
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
other
income
|
|
1,211.0
|
|
1,091.4
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
50.6
|
|
56.4
|
|
Acquisition
costs
|
|
3.5
|
|
-
|
|
Acquisition-related
inventory fair value adjustments
|
|
5.0
|
|
-
|
|
Other
|
|
7.8
|
|
1.4
|
|
Core operating
earnings
|
|
$
1,277.9
|
|
$
1,149.2
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
Net income available
to Lear common shareholders
|
|
$
890.2
|
|
$
745.2
|
|
Redeemable
noncontrolling interest
|
|
22.7
|
|
-
|
|
Net income
attributable to Lear
|
|
912.9
|
|
745.2
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
49.5
|
|
56.4
|
|
Acquisition
costs
|
|
3.5
|
|
-
|
|
Acquisition-related
inventory fair value adjustments
|
|
5.0
|
|
-
|
|
Loss on
extinguishment of debt
|
|
21.2
|
|
-
|
|
Gain related to
affiliate
|
|
(54.2)
|
|
(30.3)
|
|
Other
|
|
7.9
|
|
(0.6)
|
|
Tax impact of special
items and other net tax adjustments 4
|
|
(68.4)
|
|
(14.5)
|
|
Adjusted net income
attributable to Lear
|
|
$
877.4
|
|
$
756.2
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
69.5
|
|
73.8
|
|
|
|
|
|
|
|
Diluted net income
per share available to Lear
|
|
|
|
|
|
common
stockholders
|
|
$
12.80
|
|
$
10.10
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
12.62
|
|
$
10.25
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $16.3 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
|
|
|
|
September
30,
|
|
October
1,
|
|
|
|
2017
|
|
2016
|
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
3,868.9
|
|
$
3,513.3
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
298.8
|
|
$
269.5
|
|
Costs related to
restructuring actions
|
|
14.1
|
|
8.0
|
|
Acquisition
costs
|
|
0.1
|
|
-
|
|
Adjusted segment
earnings
|
|
$
313.0
|
|
$
277.5
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.1%
|
|
7.9%
|
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
1,112.6
|
|
$
1,013.1
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
155.5
|
|
$
140.3
|
|
Costs related to
restructuring actions
|
|
3.0
|
|
8.6
|
|
Acquisition-related
inventory fair value adjustments
|
|
0.7
|
|
-
|
|
Other
|
|
1.2
|
|
1.2
|
|
Adjusted segment
earnings
|
|
$
160.4
|
|
$
150.1
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.4%
|
|
14.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
October
1,
|
|
|
|
2017
|
|
2016
|
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
11,762.0
|
|
$
10,755.7
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
941.8
|
|
$
848.8
|
|
Costs related to
restructuring actions
|
|
33.8
|
|
33.7
|
|
Acquisition
costs
|
|
0.3
|
|
-
|
|
Acquisition-related
inventory fair value adjustments
|
|
4.3
|
|
-
|
|
Other
|
|
-
|
|
(4.0)
|
|
Adjusted segment
earnings
|
|
$
980.2
|
|
$
878.5
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.3%
|
|
8.2%
|
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
3,341.2
|
|
$
3,158.4
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
476.7
|
|
$
441.5
|
|
Costs related to
restructuring actions
|
|
11.1
|
|
19.8
|
|
Acquisition-related
inventory fair value adjustments
|
|
0.7
|
|
|
|
Other
|
|
3.6
|
|
3.6
|
|
Adjusted segment
earnings
|
|
$
492.1
|
|
$
464.9
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.7%
|
|
14.7%
|
View original
content:http://www.prnewswire.com/news-releases/lear-reports-record-third-quarter-2017-results-and-increases-full-year-financial-outlook-300542676.html
SOURCE Lear Corporation