SOUTHFIELD, Mich., Feb. 12, 2016 /PRNewswire/ -- Lear
Corporation (NYSE: LEA), a leading global supplier of automotive
seating and electrical systems, today announced that its Board of
Directors has authorized an increase in the Company's share
repurchase authorization to $1
billion while maintaining the authorization period until
December 31, 2017. In addition,
the Board increased by 20% the quarterly cash dividend on the
Company's common stock from $0.25 per
share to $0.30 per share. The
next dividend is payable on March 23,
2016 to shareholders of record at the close of business on
March 2, 2016.
"The Lear Board of Directors is committed to delivering superior
returns to shareholders," said Henry D. G.
Wallace, Lear's Non-Executive Chairman. "The shareholder
actions announced today demonstrate the confidence Lear's Board of
Directors has in the Company's outlook. The Board believes
that the Company's balanced strategy of investing in the business
and consistently returning cash to shareholders, while maintaining
a strong and flexible balance sheet, will allow Lear to profitably
grow and create significant value for shareholders."
"The Company's strong operating performance and financial
strength are allowing us to build upon our proven record of
returning capital to shareholders. The investments we have
made in our business have put the Company in the strongest
competitive position in our history. I am confident that Lear
is well positioned for future growth and success," said
Matt Simoncini, Lear President and
Chief Executive Officer.
At the end of 2015, Lear had $513
million remaining on its share repurchase
authorization. Including today's action, Lear's total
available share repurchase authorization is $1 billion.
Since the Company began its share repurchase and dividend
programs in 2011, Lear has returned more than $2.7 billion to shareholders, including the
repurchase of 34% of the Company's shares outstanding. In
addition, Lear's total shareholder return over the last five years
was 162%, compared with 49% for the peer group shown in the
Company's Annual Report on Form 10-K and 81% for the S&P 500
over the same period.
Lear may implement share repurchases under the new share
repurchase authorization utilizing a variety of methods including
open market purchases, accelerated share repurchase programs and
structured repurchase transactions. Share repurchases are
subject to the Company's alternative uses of capital and prevailing
financial, market and industry conditions.
Lear's 2016 Annual Meeting will be held on May 19, 2016 at 9:00 a.m.
Eastern Time, at the Company's corporate headquarters, 21557
Telegraph Road, Southfield,
Michigan 48033. The record date for determining
eligibility to vote at the 2016 Annual Meeting is March 24, 2016.
About Lear Corporation
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.
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, 2015, 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.
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SOURCE Lear Corporation