SOUTHFIELD, Mich., Aug. 2, 2022
/PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive
technology leader in Seating and E-Systems, today reported results
for the second quarter 2022.
Second Quarter 2022 Highlights
- Sales outperformed global industry production by six percentage
points, reflecting growth over market in both Seating and
E-Systems
- Sales increased 7% to $5.1
billion, compared to $4.8
billion in the second quarter of 2021
- Net income of $69 million and
adjusted net income of $107 million,
compared to $175 million and
$148 million, respectively, in the
second quarter of 2021
- Core operating earnings of $187
million, compared to $233
million in the second quarter of 2021
- Earnings per share of $1.14 and
adjusted earnings per share of $1.79,
compared to $2.89 and $2.45, respectively, in the second quarter of
2021
- Net cash provided by operating activities of $11 million and free cash flow of $(161) million, compared to $260 million and $120
million, respectively, in the second quarter of 2021
- Entered into a definitive agreement to acquire I.G. Bauerhin
(IGB) to further expand our capabilities in thermal comfort
solutions
- Acquired Thagora Technology SRL, a company specializing in
material utilization hardware and software technologies
- Received Quality First award from Stellantis for achievements
and commitment to industrial development and production
- Released 2021 Sustainability Report, featuring progress on
Lear's renewable energy strategy, innovative green products,
supplier sustainability and Diversity, Equity and Inclusion
efforts
- Returned $96 million to
shareholders through share repurchases and dividends
- Cash and cash equivalents of $828
million and total available liquidity of $2.8 billion at quarter end
"In a quarter marked with continued industry supply chain
disruptions, including significant COVID-related production
shutdowns in China, and increased
commodity costs, Lear recorded solid financial results in the
second quarter," said Ray Scott,
Lear's President and Chief Executive Officer. "We are proactively
taking steps to reduce costs and improve our manufacturing
flexibility to position the Company to succeed in multiple industry
volume scenarios. The IGB acquisition we announced in
the quarter will further strengthen Lear's position as the leading
supplier of automotive seating. Our increased emphasis on thermal
comfort will create value for our customers through innovative and
efficient products that improve quality, performance, weight, and
cost. The strategic actions we are taking are designed to increase
earnings and cash flow, and support increased cash returns to
shareholders."
Second Quarter
Financial Results
|
(in millions, except
per share amounts)
|
|
|
2022
|
|
2021
|
Reported
|
|
|
|
Sales
|
$5,071.0
|
|
$4,760.7
|
Net income
|
$68.5
|
|
$175.2
|
Earnings per
share
|
$1.14
|
|
$2.89
|
|
|
|
|
Adjusted(1)
|
|
|
|
Core operating
earnings
|
$187.4
|
|
$233.2
|
Adjusted net
income
|
$107.4
|
|
$148.3
|
Adjusted earnings per
share
|
$1.79
|
|
$2.45
|
In the second quarter, global vehicle production increased by 1%
compared to a year ago, with North
America up 12%, Europe down
5%, and China down 3%. Global
production increased on a Lear sales-weighted basis(2)
by approximately 2%.
Sales in the second quarter increased 7% to $5.1 billion
compared to a year ago. Excluding the impact of foreign exchange,
commodities and acquisitions, sales were up 8%, reflecting the
addition of new business in both business segments and increased
production on key Lear platforms. Sales growth over market in the
second quarter was six percentage points, driven primarily by the
impact of new business in both segments.
Core operating earnings were $187 million, or 3.7% of
sales, compared to $233 million, or 4.9% of sales, in
2021. The decrease in earnings resulted primarily from higher
commodity costs and the impact of foreign exchange, which were
partially offset by the addition of new business and higher
production on key Lear platforms. In the Seating segment, margins
and adjusted margins were 5.5% and 6.0% of sales,
respectively. In the E-Systems segment, margins and adjusted
margins were 0.2% and 2.0% of sales, respectively.
Earnings per share were $1.14. Adjusted earnings per
share were $1.79, down from $2.45 in 2021, primarily
reflecting lower operating earnings.
In the second quarter of 2022, net cash provided by operating
activities was $11 million, and
free cash flow(1) was $(161) million.
(1) For more information regarding our non-GAAP
financial measures, see "Non-GAAP Financial Information" below.
(2) The production change on a Lear
sales-weighted basis is calculated using Lear's prior year regional
sales mix and second quarter fiscal calendar. Management
believes this provides a more meaningful comparison of the
Company's global revenue growth relative to global vehicle
production.
IGB Acquisition
On May 20, 2022, Lear announced
that it had entered into a definitive agreement to acquire IGB, a
German-based supplier of automotive seat heating, ventilation,
active cooling, steering wheel heating, seat sensors, and
electronic control modules. This acquisition will expand Lear's
product capabilities into active cooling and complement existing
offerings in specialized thermal comfort seating solutions that
improve vehicle performance and packaging. Under the terms of the
agreement, Lear will acquire IGB for €140 million, on a cash and
debt free basis. The transaction is subject to regulatory approvals
and other customary closing conditions and adjustments.
Share Repurchases
During the second quarter of 2022, we repurchased 380,220 shares
of our common stock for a total of $50.2
million. At the end of the second quarter, we had a
remaining share repurchase authorization of approximately
$1.3 billion, which expires on
December 31, 2024, and reflects
approximately 14% of our total market capitalization at current
market prices.
Since initiating the share repurchase program in 2011, we have
repurchased 52.8 million shares of our common stock for a total of
$4.8 billion at an average price of
$91.27 per share. This represents a
reduction of approximately 50% of our shares outstanding since the
time we began the program.
2022 Financial Outlook
Compared to our prior financial outlook, we have narrowed the
ranges, but the midpoint of the range for net sales and core
operating earnings are unchanged. Our 2022 financial outlook
is summarized below:
|
Full Year 2022
Financial Outlook
|
|
|
|
Net Sales
|
$20,550 - $21,050
million
|
|
|
Core Operating
Earnings
|
$815 - $915
million
|
|
|
Adjusted
EBITDA
|
$1,405 - $1,505
million
|
|
|
Restructuring
Costs
|
≈$150
million
|
|
|
Operating Cash
Flow
|
$950 - $1,075
million
|
|
|
Capital
Spending
|
$675 - $700
million
|
|
|
Free Cash
Flow
|
$275 - $375
million
|
|
|
The industry volume assumptions underlying Lear's 2022 financial
outlook are derived from several sources, including internal
estimates, customer production schedules and the most recent
S&P Global Mobility production estimates for Lear's vehicle
platforms.
The financial outlook is based on a full year average exchange
rate of $1.06/Euro and 6.60 RMB/$.
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 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.
Second Quarter 2022 Conference Call and Webcast
Information
A conference call and webcast will be held to discuss Lear's
second quarter 2022 financial results and related matters on
August 2, 2022, at 8:30 a.m. EDT. The webcast link for the
conference call will be available through Lear's investor relations
webpage at ir.lear.com. In addition, the conference call can be
accessed by dialing 1-877-883-0383 (domestic) or 1-412-902-6506
(international) with Conference I.D. 5082523. The webcast replay
will be available two hours following the call.
Non-GAAP Financial Information
In addition to the results reported in accordance with
accounting principles generally accepted in the United States (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), "pretax income
before equity income, interest, other (income) expense,
depreciation expense, amortization of intangible assets,
restructuring costs and other special items" (adjusted EBITDA),
"adjusted depreciation and amortization," "adjusted net income
attributable to Lear" (adjusted net income), "adjusted diluted net
income per share attributable to Lear" (adjusted earnings per
share) 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,
gains and losses on the disposal of fixed assets and the
non-service cost components of net periodic benefit cost. Adjusted
depreciation and amortization represents depreciation expense and
amortization of intangible assets adjusted for intangible asset
impairment charges. 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 EBITDA, adjusted depreciation and amortization,
adjusted net income and adjusted earnings per share 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 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 EBITDA, adjusted depreciation
and amortization, adjusted net income, adjusted earnings per share
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.
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,
2021, its Quarterly Report on Form 10-Q for the quarter
ended April 2, 2022, and its other
Securities and Exchange Commission filings. Future operating
results will be based on various factors, including actual industry
production volumes, the impact of the ongoing COVID-19 pandemic and
the Ukraine war on the Company's
business and the global economy, supply chain disruptions,
commodity prices, the impact of restructuring actions 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 Company enters into contracts with
its customers to provide production parts generally at the
beginning of a vehicle's life cycle. Typically, these contracts do
not provide for a specified quantity of production, and many of
these contracts may be terminated by the Company's customers at any
time. Therefore, these contracts do not represent firm orders.
Further, 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 Corporation
Lear, a global automotive technology leader in Seating and
E-Systems, enables superior in-vehicle experiences for consumers
around the world. Lear's diverse team of talented employees in 38
countries is driven by a commitment to innovation, operational
excellence, and sustainability. Lear is Making every drive better™
by providing the technology for safer, smarter, and more
comfortable journeys. Lear, headquartered in Southfield, Michigan, serves every major
automaker in the world and ranks 186 on the Fortune 500. Further
information about Lear is available at lear.com or on Twitter
@LearCorporation.
Lear Corporation and
Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
Three Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Net sales
|
|
$
5,071.0
|
|
$
4,760.7
|
|
|
|
|
|
Cost of
sales
|
|
4,731.1
|
|
4,359.3
|
Selling, general and
administrative expenses
|
|
171.2
|
|
170.8
|
Amortization of
intangible assets
|
|
24.6
|
|
25.1
|
Interest
expense
|
|
24.9
|
|
22.3
|
Other (income) expense,
net
|
|
14.4
|
|
(46.1)
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
104.8
|
|
229.3
|
Income taxes
|
|
23.5
|
|
39.3
|
Equity in net income of
affiliates
|
|
(4.3)
|
|
(4.9)
|
|
|
|
|
|
Consolidated net
income
|
|
85.6
|
|
194.9
|
Net income attributable
to noncontrolling interests
|
|
17.1
|
|
19.7
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
68.5
|
|
$
175.2
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to Lear
|
|
$
1.14
|
|
$
2.89
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
60.1
|
|
60.6
|
Lear Corporation and
Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
Six Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Net sales
|
|
$
10,279.4
|
|
$
10,115.1
|
|
|
|
|
|
Cost of
sales
|
|
9,618.0
|
|
9,220.9
|
Selling, general and
administrative expenses
|
|
348.5
|
|
339.7
|
Amortization of
intangible assets
|
|
40.3
|
|
41.6
|
Interest
expense
|
|
49.8
|
|
44.6
|
Other (income) expense,
net
|
|
41.7
|
|
(39.8)
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
181.1
|
|
508.1
|
Income taxes
|
|
43.9
|
|
98.2
|
Equity in net income of
affiliates
|
|
(15.0)
|
|
(10.8)
|
|
|
|
|
|
Consolidated net
income
|
|
152.2
|
|
420.7
|
Net income attributable
to noncontrolling interests
|
|
34.3
|
|
41.8
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
117.9
|
|
$
378.9
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
1.96
|
|
$
6.25
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
60.2
|
|
60.6
|
Lear Corporation and
Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
(In
millions)
|
|
|
|
July 2,
2022
|
|
December 31,
2021
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
828.0
|
|
$
1,318.3
|
Accounts
receivable
|
|
3,369.7
|
|
3,041.5
|
Inventories
|
|
1,612.8
|
|
1,571.9
|
Other
|
|
874.9
|
|
833.5
|
|
|
6,685.4
|
|
6,765.2
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
2,778.7
|
|
2,720.1
|
Goodwill
|
|
1,651.9
|
|
1,657.9
|
Other
|
|
2,229.4
|
|
2,209.2
|
|
|
6,660.0
|
|
6,587.2
|
|
|
|
|
|
Total Assets
|
|
$
13,345.4
|
|
$
13,352.4
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Accounts payable and
drafts
|
|
$
3,110.7
|
|
$
2,952.4
|
Accrued
liabilities
|
|
1,916.2
|
|
1,806.7
|
Current portion of
long-term debt
|
|
0.7
|
|
0.8
|
|
|
5,027.6
|
|
4,759.9
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
2,595.2
|
|
2,595.2
|
Other
|
|
1,174.7
|
|
1,188.9
|
|
|
3,769.9
|
|
3,784.1
|
|
|
|
|
|
Equity
|
|
4,547.9
|
|
4,808.4
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$
13,345.4
|
|
$
13,352.4
|
Lear Corporation and
Subsidiaries
|
Consolidated
Supplemental Data
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Net Sales
|
|
|
|
|
North
America
|
|
$
2,193.5
|
|
$
1,857.0
|
Europe and
Africa
|
|
1,744.7
|
|
1,727.0
|
Asia
|
|
916.0
|
|
997.2
|
South
America
|
|
216.8
|
|
179.5
|
Total
|
|
$
5,071.0
|
|
$
4,760.7
|
|
|
|
|
|
Content per Vehicle 1
|
|
|
|
|
North
America
|
|
$
617
|
|
$
574
|
Europe and
Africa
|
|
$
433
|
|
$
399
|
|
|
|
|
|
Free Cash Flow 2
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
11.4
|
|
$
260.1
|
Capital
expenditures
|
|
(172.2)
|
|
(140.0)
|
Free cash
flow
|
|
$
(160.8)
|
|
$
120.1
|
|
|
|
|
|
Core Operating Earnings
2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
68.5
|
|
$
175.2
|
Interest
expense
|
|
24.9
|
|
22.3
|
Other (income)
expense, net
|
|
14.4
|
|
(46.1)
|
Income
taxes
|
|
23.5
|
|
39.3
|
Equity in net income
of affiliates
|
|
(4.3)
|
|
(4.9)
|
Net income
attributable to noncontrolling interests
|
|
17.1
|
|
19.7
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
42.6
|
|
14.8
|
Acquisition
costs
|
|
(0.7)
|
|
—
|
Acquisition-related
inventory fair value adjustment
|
|
1.1
|
|
—
|
Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(6.3)
|
|
—
|
Other
|
|
(2.3)
|
|
4.4
|
Core operating
earnings
|
|
$
187.4
|
|
$
233.2
|
Lear Corporation and
Subsidiaries
|
Consolidated
Supplemental Data
|
(continued)
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Adjusted Net Income and Adjusted Earnings Per
Share 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
68.5
|
|
$
175.2
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
42.6
|
|
14.8
|
Acquisition
costs
|
|
(0.7)
|
|
—
|
Acquisition-related
inventory fair value adjustment
|
|
1.1
|
|
—
|
Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(6.3)
|
|
—
|
Foreign exchange
losses due to foreign exchange rate volatility related to
Russia
|
|
2.3
|
|
—
|
Favorable indirect tax
ruling in a foreign jurisdiction
|
|
—
|
|
(47.0)
|
Loss related to
affiliate
|
|
—
|
|
1.0
|
Other
|
|
4.4
|
|
0.9
|
Tax impact of special
items and other net tax adjustments 3
|
|
(13.4)
|
|
(5.1)
|
Adjusted net
income
|
|
$
107.4
|
|
$
148.3
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
60.1
|
|
60.6
|
|
|
|
|
|
Diluted net income per
share attributable to Lear
|
|
$
1.14
|
|
$
2.89
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
1.79
|
|
$
2.45
|
|
|
|
|
|
Adjusted Depreciation and Amortization
2
|
|
$
151.6
|
|
$
150.2
|
Less - Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Adjusted depreciation
and amortization
|
|
$
142.7
|
|
$
141.7
|
Lear Corporation and
Subsidiaries
|
Consolidated
Supplemental Data
|
(continued)
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Six Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Net Sales
|
|
|
|
|
North
America
|
|
$
4,391.3
|
|
$
3,868.2
|
Europe and
Africa
|
|
3,535.9
|
|
3,804.0
|
Asia
|
|
1,946.1
|
|
2,082.7
|
South
America
|
|
406.1
|
|
360.2
|
Total
|
|
$ 10,279.4
|
|
$ 10,115.1
|
|
|
|
|
|
Content per Vehicle 1
|
|
|
|
|
North
America
|
|
$
612
|
|
$
561
|
Europe and
Africa
|
|
$
436
|
|
$
410
|
|
|
|
|
|
Free Cash Flow 2
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
232.1
|
|
$
507.6
|
Capital
expenditures
|
|
(302.5)
|
|
(252.9)
|
Free cash
flow
|
|
$
(70.4)
|
|
$
254.7
|
|
|
|
|
|
Core Operating Earnings
2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
117.9
|
|
$
378.9
|
Interest
expense
|
|
49.8
|
|
44.6
|
Other (income)
expense, net
|
|
41.7
|
|
(39.8)
|
Income
taxes
|
|
43.9
|
|
98.2
|
Equity in net income
of affiliates
|
|
(15.0)
|
|
(10.8)
|
Net income
attributable to noncontrolling interests
|
|
34.3
|
|
41.8
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
74.9
|
|
39.2
|
Acquisition
costs
|
|
9.3
|
|
—
|
Acquisition-related
inventory fair value adjustment
|
|
1.1
|
|
—
|
Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Costs related to
typhoon in the Philippines, net of insurance recoveries
|
|
4.5
|
|
—
|
Other
|
|
(0.2)
|
|
8.8
|
Core operating
earnings
|
|
$
371.1
|
|
$
569.4
|
Lear Corporation and
Subsidiaries
|
Consolidated
Supplemental Data
|
(continued)
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
Six Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Adjusted Net Income Attributable to Lear
2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
117.9
|
|
$
378.9
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
74.9
|
|
39.2
|
Acquisition
costs
|
|
9.3
|
|
—
|
Acquisition-related
inventory fair value adjustment
|
|
1.1
|
|
—
|
Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Costs related to
typhoon in the Philippines, net of insurance recoveries
|
|
4.5
|
|
—
|
Foreign exchange
losses due to foreign exchange rate volatility related to
Russia
|
|
13.7
|
|
—
|
Favorable indirect tax
ruling in a foreign jurisdiction
|
|
—
|
|
(47.0)
|
Loss related to
affiliate
|
|
—
|
|
1.0
|
Other
|
|
10.6
|
|
4.2
|
Tax impact of special
items and other net tax adjustments 3
|
|
(25.4)
|
|
(10.6)
|
Adjusted net income
attributable to Lear
|
|
$
215.5
|
|
$
374.2
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
60.2
|
|
60.6
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
1.96
|
|
$
6.25
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.58
|
|
$
6.18
|
|
|
|
|
|
Adjusted Depreciation and Amortization
2
|
|
|
|
|
Depreciation and
amortization
|
|
$
295.0
|
|
$
291.0
|
Less - Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Adjusted depreciation
and amortization
|
|
$
286.1
|
|
$
282.5
|
|
|
|
|
|
Diluted Shares Outstanding at End of
Period 4
|
|
59,801,090
|
|
60,476,183
|
|
|
|
|
|
1 Content per Vehicle for 2021 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.
|
|
|
|
|
|
4 Calculated using stock price at end of
quarter.
|
|
|
|
|
Lear Corporation and
Subsidiaries
|
Segment Supplemental
Data
|
|
(Unaudited; in
millions, except margins)
|
|
|
|
Three Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Adjusted Segment Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$ 3,874.1
|
|
$ 3,608.2
|
|
|
|
|
|
Segment
earnings
|
|
$
213.9
|
|
$
252.2
|
Restructuring costs
and other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
18.2
|
|
9.7
|
Acquisition-related
inventory fair value adjustment
|
|
1.1
|
|
—
|
Other
|
|
0.2
|
|
0.3
|
Adjusted segment
earnings
|
|
$
233.4
|
|
$
262.2
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.0 %
|
|
7.3 %
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$ 1,196.9
|
|
$ 1,152.5
|
|
|
|
|
|
Segment
earnings
|
|
$
2.0
|
|
$
26.6
|
Restructuring and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
19.4
|
|
5.1
|
Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(6.5)
|
|
—
|
Other
|
|
0.5
|
|
0.3
|
Adjusted segment
earnings
|
|
$
24.3
|
|
$
40.5
|
|
|
|
|
|
Adjusted segment
margins
|
|
2.0 %
|
|
3.5 %
|
Lear Corporation and
Subsidiaries
|
Segment Supplemental
Data
|
(continued)
|
|
(Unaudited; in
millions, except margins)
|
|
|
|
Six Months Ended
|
|
|
July 2,
2022
|
|
July 3,
2021
|
Adjusted Segment Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$ 7,786.6
|
|
$ 7,604.2
|
|
|
|
|
|
Segment
earnings
|
|
$
414.0
|
|
$
544.2
|
Costs related to
restructuring actions
|
|
35.5
|
|
24.4
|
Acquisition
costs
|
|
0.1
|
|
—
|
Acquisition-related
inventory fair value adjustment
|
|
1.1
|
|
—
|
Costs related to
typhoon in the Philippines
|
|
0.1
|
|
—
|
Other
|
|
0.3
|
|
0.7
|
Adjusted segment
earnings
|
|
$
451.1
|
|
$
569.3
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.8 %
|
|
7.5 %
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$ 2,492.8
|
|
$ 2,510.9
|
|
|
|
|
|
Segment
earnings
|
|
$
17.9
|
|
$
115.9
|
Costs related to
restructuring actions
|
|
34.4
|
|
10.6
|
Intangible asset
impairment
|
|
8.9
|
|
8.5
|
Costs related to
typhoon in the Philippines, net of insurance recoveries
|
|
4.0
|
|
—
|
Other
|
|
1.0
|
|
0.8
|
Adjusted segment
earnings
|
|
$
66.2
|
|
$
135.8
|
|
|
|
|
|
Adjusted segment
margins
|
|
2.7 %
|
|
5.4 %
|
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SOURCE Lear Corporation