SOUTHFIELD, Mich., Jan. 28, 2016 /PRNewswire/ -- Lear Corporation
(NYSE: LEA), a leading global supplier of automotive seating and
electrical systems, today reported record financial results for the
fourth quarter and full year 2015 and reaffirmed 2016
guidance. 2015 highlights include:
Fourth Quarter 2015
- Sales of $4.7 billion, up 4% from
a year ago; 11% growth excluding impact of foreign exchange
- Record core operating earnings of $359
million, up 28% from prior year
- Core operating margin of 7.6%, up from 6.2% a year ago, with
improved margins in both business segments
- Adjusted earnings per share of $3.20, up 41% from prior year
- Returned $123 million to
shareholders through share repurchases and dividends
Full Year 2015
- Record sales of $18.2 billion, up
3% from a year ago; 11% growth excluding impact of foreign
exchange
- Record core operating earnings of $1.310
billion, up 25% from prior year
- Core operating margin of 7.2%, up from 5.9% a year ago, with
improved margins in both business segments
- Record adjusted earnings per share of $10.85, up 33% from prior year
- Record free cash flow of $831
million
- Returned $566 million to
shareholders through share repurchases and dividends
- Completed acquisitions of Eagle Ottawa Premium Leather, Arada
Systems and intellectual property from Autonet Mobile
- Total shareholder return of 26% was significantly higher than
S&P 500 and peers
"In the fourth quarter, we again delivered record financial
results, and for the full year 2015 we reported our 6th consecutive
year of higher sales, increased earnings per share and strong cash
flow," said Matt Simoncini, Lear's
president and chief executive officer. "During 2015, we continued
to invest in our business with the acquisitions of Eagle Ottawa,
Arada Systems and Autonet Mobile as well as continued expansion of
our world-class component facilities in low-cost regions. As
a result of these investments, Lear has differentiated itself from
the competition in craftsmanship and connectivity. Our strong
financial position, product capabilities, low-cost manufacturing
footprint and strong customer relationships have put Lear in the
best overall competitive position in our history."
Business Conditions
In the fourth quarter, global vehicle production increased 4%
from a year ago. Production increased by 2% in North America, 4% in Europe & Africa and 14% in China. Production decreased by 29% in
South America.
For the full year, global vehicle production increased 2% from a
year ago. Production in North
America, Europe &
Africa and China increased by 3%, 5% and 5%,
respectively. Production in South
America decreased by 20%.
Fourth Quarter 2015 Financial Results
For the fourth quarter of 2015, Lear reported sales of
$4.7 billion, core operating earnings
of $359 million, net income of
$235 million and adjusted earnings
per share of $3.20. This
compares with sales of $4.5 billion,
core operating earnings of $280
million, net income of $262
million and adjusted earnings per share of $2.27 for the fourth quarter of 2014.
In the Seating segment, sales were up 7% to $3.7 billion, reflecting the acquisition of Eagle
Ottawa and the addition of new business partially offset by the
impact of foreign exchange. Excluding the impact of foreign
exchange, sales increased 13%. Adjusted segment earnings were
$279 million or 7.6% of sales.
Margins improved 170 basis points from a year ago, reflecting the
increase in sales, including the acquisition of Eagle Ottawa, and
favorable operating performance.
In the Electrical segment, sales were down 5% to $1.0 billion. Excluding the impact of
foreign exchange, sales increased 4%, primarily reflecting improved
production volumes on key platforms and the addition of new
business. Adjusted segment earnings were $148 million or 14.1% of sales. Margins
improved 80 basis points from a year ago, reflecting continued
strong operating performance, and marks our 25th consecutive
quarter of year-over-year margin improvement.
In the fourth quarter of 2015, free cash flow was $427 million, and net cash provided by operating
activities was $585 million.
Full Year 2015 Financial Results
For the full year 2015, Lear reported sales of $18.2 billion, core operating earnings of
$1.310 billion, net income of
$746 million and adjusted earnings
per share of $10.85. This
compares with sales of $17.7 billion,
core operating earnings of $1.050
billion, net income of $672
million and adjusted earnings per share of $8.15 in 2014.
In the Seating segment, net sales were up 6% to $14.1 billion, reflecting primarily the
acquisition of Eagle Ottawa, the addition of new business and
higher production on key platforms partially offset by the impact
of foreign exchange. Adjusted segment earnings were
$994 million or 7.1% of sales.
Margins increased 140 basis points from a year ago, primarily
reflecting the increase in sales, including the acquisition of
Eagle Ottawa, and favorable operating performance.
In the Electrical segment, net sales were down 7% to
$4.1 billion. Excluding the
impact of foreign exchange, sales increased 3%, primarily
reflecting the addition of new business and higher production on
key platforms. Adjusted segment earnings were $569 million or 13.8% of sales. Margins
improved 100 basis points from a year ago, reflecting continued
strong operating performance.
Free cash flow in 2015 was $831
million, and net cash provided by operating activities was
$1.271 billion.
Reconciliations of core operating earnings to pretax income
before equity income, adjusted net income to net income
attributable to Lear, adjusted earnings per share to diluted net
income per share attributable to Lear, adjusted segment earnings to
reported segment earnings and free cash flow to net cash provided
by operating activities, in each case as determined in accordance
with accounting principles generally accepted in the United States (GAAP), are provided in the
attached supplemental data pages.
Share Repurchase Program
During the fourth quarter of 2015, Lear repurchased
approximately 841,000 shares of its common stock for a total of
$104 million. As of the end of the
fourth quarter, Lear has a remaining share repurchase authorization
of $513 million, which expires on
December 31, 2017, 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 35.2 million shares of its common stock for a
total of $2.4 billion at an average
price of $68.12 per share. This
represents a reduction of approximately 34% of our shares
outstanding at the time we began the program.
Full Year 2016 Financial Outlook
Our 2016 financial outlook is unchanged and is based on industry
vehicle production assumptions of 18.2 million units in
North America, up 4% from the
prior year, 21.8 million units in Europe & Africa, up 2% from the prior year, and 23.6
million units in China, up 6% from
the prior year. Lear's financial guidance is based on an
average full year exchange rate of $1.10/Euro, down 1% from 2015.
Sales in 2016 are expected to be in the range of $18.5 billion to $19.0 billion, and core
operating earnings are expected to be in the range of $1.35 to $1.40 billion. Free cash flow is
expected to be approximately $800
million.
Our effective tax rate is expected to be approximately
28%. Adjusted net income is expected to be in the range of
$855 to $895 million.
Depreciation and amortization expense is estimated to be
approximately $375 million. The
outlook for pretax operational restructuring costs and capital
spending is approximately $70 million
and $525 million,
respectively.
Webcast Information
Lear will webcast a conference call to review the Company's
fourth quarter and full year 2015 financial results and related
matters on January 28, 2016, 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 5, 2016, with a Conference I.D. of
61724143.
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 pretax income before equity
income, 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.
Given the inherent uncertainty regarding special items and other
expense in any future period, a reconciliation of forward-looking
financial measures to the most directly comparable financial
measures calculated and presented in accordance with GAAP is not
feasible. The magnitude of these items, however, may be
significant.
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; and other risks described in the
Company's Annual Report on Form 10-K for the year ended
December 31, 2014, 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 350 vehicle nameplates.
Lear's world-class products are designed, engineered and
manufactured by a diverse team of approximately 136,000 employees
located in 36 countries. Lear currently ranks #174 on the
Fortune 500. Lear's headquarters are in Southfield, Michigan. Further
information about Lear is available at
http://www.lear.com.
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Net sales
|
|
$
4,724.6
|
|
$
4,549.7
|
|
|
|
|
|
Cost of
sales
|
|
4,233.9
|
|
4,157.7
|
Selling, general and
administrative expenses
|
|
139.7
|
|
127.1
|
Amortization of
intangible assets
|
|
13.0
|
|
8.3
|
Interest
expense
|
|
20.4
|
|
20.4
|
Other expense,
net
|
|
8.2
|
|
17.2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
309.4
|
|
219.0
|
Income
taxes
|
|
74.6
|
|
(41.7)
|
Equity in net income
of affiliates
|
|
(18.1)
|
|
(7.3)
|
|
|
|
|
|
Consolidated net
income
|
|
252.9
|
|
268.0
|
Net income
attributable to noncontrolling interests
|
|
17.6
|
|
6.2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
235.3
|
|
$
261.8
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
3.07
|
|
$
3.24
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
76.6
|
|
80.9
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Net sales
|
|
$
18,211.4
|
|
$
17,727.3
|
|
|
|
|
|
Cost of
sales
|
|
16,391.6
|
|
16,234.5
|
Selling, general and
administrative expenses
|
|
580.5
|
|
529.9
|
Amortization of
intangible assets
|
|
52.5
|
|
33.7
|
Interest
expense
|
|
86.7
|
|
67.5
|
Other expense,
net
|
|
68.6
|
|
74.3
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
1,031.5
|
|
787.4
|
Income
taxes
|
|
285.5
|
|
121.4
|
Equity in net income
of affiliates
|
|
(49.8)
|
|
(36.3)
|
|
|
|
|
|
Consolidated net
income
|
|
795.8
|
|
702.3
|
Net income
attributable to noncontrolling interests
|
|
50.3
|
|
29.9
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
745.5
|
|
$
672.4
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
9.59
|
|
$
8.23
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
77.8
|
|
81.7
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,196.6
|
|
$
1,094.1
|
Accounts
receivable
|
|
2,590.0
|
|
2,471.7
|
Inventories
|
|
947.6
|
|
853.7
|
Other
|
|
552.4
|
|
746.1
|
|
|
5,286.6
|
|
5,165.6
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
1,826.5
|
|
1,624.7
|
Goodwill
|
|
1,053.8
|
|
726.2
|
Other
|
|
1,238.9
|
|
1,596.6
|
|
|
4,119.2
|
|
3,947.5
|
|
|
|
|
|
Total
Assets
|
|
$
9,405.8
|
|
$
9,113.1
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Accounts payable and
drafts
|
|
$
2,504.4
|
|
$
2,525.3
|
Accrued
liabilities
|
|
1,312.1
|
|
1,179.3
|
Current portion of
long-term debt
|
|
23.1
|
|
240.5
|
|
|
3,839.6
|
|
3,945.1
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
1,931.7
|
|
1,454.0
|
Other
|
|
616.8
|
|
684.7
|
|
|
2,548.5
|
|
2,138.7
|
|
|
|
|
|
Equity
|
|
3,017.7
|
|
3,029.3
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
9,405.8
|
|
$
9,113.1
|
|
|
|
|
|
Lear Corporation
and Subsidiaries
|
Supplemental
Data
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
Net
Sales
|
|
|
|
|
|
North
America
|
|
$
1,970.1
|
|
$
1,752.2
|
|
Europe and
Africa
|
|
1,728.8
|
|
1,769.3
|
|
Asia
|
|
921.3
|
|
839.3
|
|
South
America
|
|
104.4
|
|
188.9
|
|
Total
|
|
$
4,724.6
|
|
$
4,549.7
|
|
|
|
|
|
|
|
Content Per
Vehicle1
|
|
|
|
|
|
North
America
|
|
$
433
|
|
$
400
|
|
Europe and
Africa
|
|
$
309
|
|
$
334
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
585.1
|
|
$
516.1
|
|
Capital
expenditures
|
|
(158.1)
|
|
(143.9)
|
|
Free cash
flow
|
|
$
427.0
|
|
$
372.2
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
90.4
|
|
$
78.3
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
|
equity in net income
of affiliates
|
|
$
309.4
|
|
$
219.0
|
|
Interest
expense
|
|
20.4
|
|
20.4
|
|
Other expense,
net
|
|
8.2
|
|
17.2
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
other
expense
|
|
338.0
|
|
256.6
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
20.2
|
|
24.3
|
|
Other
|
|
0.7
|
|
(0.6)
|
|
Core operating
earnings
|
|
$
358.9
|
|
$
280.3
|
|
|
|
|
|
|
|
Core operating
margins
|
|
7.6%
|
|
6.2%
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
235.3
|
|
$
261.8
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
20.3
|
|
24.3
|
|
Loss on
extinguishment of debt
|
|
-
|
|
0.4
|
|
Loss related to
affiliates
|
|
-
|
|
4.9
|
|
Other
|
|
0.7
|
|
0.9
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(11.1)
|
|
(108.9)
|
|
Adjusted net income
attributable to Lear
|
|
$
245.2
|
|
$
183.4
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
76.6
|
|
80.9
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
3.07
|
|
$
3.24
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.20
|
|
$
2.27
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content Per Vehicle
for 2014 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 (including changes in valuation
allowances in several foreign and domestic subsidiaries). 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 share and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
Net
Sales
|
|
|
|
|
|
North
America
|
|
$
7,755.7
|
|
$
6,769.8
|
|
Europe and
Africa
|
|
6,756.1
|
|
7,004.6
|
|
Asia
|
|
3,235.5
|
|
3,101.8
|
|
South
America
|
|
464.1
|
|
851.1
|
|
Total
|
|
$
18,211.4
|
|
$
17,727.3
|
|
|
|
|
|
|
|
Content Per
Vehicle1
|
|
|
|
|
|
North
America
|
|
$
443
|
|
$
398
|
|
Europe and
Africa
|
|
$
314
|
|
$
341
|
|
|
|
|
|
|
|
Free Cash
Flow2
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
1,271.1
|
|
$
927.8
|
|
Settlement of
accounts payable in conjunction with acquisition of Eagle
Ottawa
|
|
45.7
|
|
-
|
|
Capital
expenditures
|
|
(485.8)
|
|
(424.7)
|
|
Free cash
flow
|
|
$
831.0
|
|
$
503.1
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
347.8
|
|
$
310.9
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding at end of year3
|
|
76,093,303
|
|
79,961,664
|
|
|
|
|
|
|
|
Core Operating
Earnings2
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
|
equity in net income
of affiliates
|
|
$
1,031.5
|
|
$
787.4
|
|
Interest
expense
|
|
86.7
|
|
67.5
|
|
Other expense,
net
|
|
68.6
|
|
74.3
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
other
expense
|
|
1,186.8
|
|
929.2
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
95.2
|
|
114.3
|
|
Acquisition and other
related costs
|
|
10.9
|
|
5.3
|
|
Acquisition-related
inventory fair value adjustment
|
|
15.8
|
|
-
|
|
Other
|
|
1.5
|
|
0.8
|
|
Core operating
earnings
|
|
$
1,310.2
|
|
$
1,049.6
|
|
|
|
|
|
|
|
Core operating
margins
|
|
7.2%
|
|
5.9%
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear2
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
745.5
|
|
$
672.4
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
97.2
|
|
115.3
|
|
Acquisition and other
related costs
|
|
10.9
|
|
5.3
|
|
Acquisition-related
inventory fair value adjustment
|
|
15.8
|
|
-
|
|
Loss on redemption of
bonds
|
|
14.3
|
|
17.9
|
|
Loss related to
affiliates, net
|
|
1.8
|
|
0.8
|
|
Other
|
|
1.5
|
|
3.3
|
|
Tax impact of special
items and other net tax adjustments 4
|
|
(43.1)
|
|
(149.1)
|
|
Adjusted net income
attributable to Lear
|
|
$
843.9
|
|
$
665.9
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
77.8
|
|
81.7
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
9.59
|
|
$
8.23
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
10.85
|
|
$
8.15
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content Per Vehicle
for 2014 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 (including changes in valuation
allowances in several foreign and domestic subsidiaries). 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
3,678.7
|
|
$
3,452.7
|
|
|
|
|
|
Segment
earnings
|
|
$
262.2
|
|
$
183.9
|
Costs related to
restructuring actions
|
|
16.5
|
|
19.1
|
Acquisition and other
related costs
|
|
-
|
|
0.1
|
Adjusted segment
earnings
|
|
$
278.7
|
|
$
203.1
|
|
|
|
|
|
Adjusted segment
margins
|
|
7.6%
|
|
5.9%
|
|
|
|
|
|
Electrical
|
|
|
|
|
Net sales
|
|
$
1,045.9
|
|
$
1,097.0
|
|
|
|
|
|
Segment
earnings
|
|
$
142.9
|
|
$
143.3
|
Costs related to
restructuring actions
|
|
4.4
|
|
3.0
|
Other
|
|
0.5
|
|
-
|
Adjusted segment
earnings
|
|
$
147.8
|
|
$
146.3
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.1%
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
14,098.5
|
|
$
13,310.6
|
|
|
|
|
|
Segment
earnings
|
|
$
907.0
|
|
$
655.2
|
Costs related to
restructuring actions
|
|
69.0
|
|
92.4
|
Acquisition and other
related costs
|
|
2.3
|
|
2.5
|
Acquisition-related
inventory fair value adjustment
|
|
15.8
|
|
-
|
Other
|
|
-
|
|
2.3
|
Adjusted segment
earnings
|
|
$
994.1
|
|
$
752.4
|
|
|
|
|
|
Adjusted segment
margins
|
|
7.1%
|
|
5.7%
|
|
|
|
|
|
Electrical
|
|
|
|
|
Net sales
|
|
$
4,112.9
|
|
$
4,416.7
|
|
|
|
|
|
Segment
earnings
|
|
$
554.4
|
|
$
556.6
|
Costs related to
restructuring actions
|
|
14.0
|
|
10.1
|
Other
|
|
0.6
|
|
0.4
|
Adjusted segment
earnings
|
|
$
569.0
|
|
$
567.1
|
|
|
|
|
|
Adjusted segment
margins
|
|
13.8%
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/lear-reports-record-fourth-quarter-and-full-year-2015-results-reaffirms-2016-financial-guidance-300210984.html
SOURCE Lear Corporation