SOUTHFIELD, Mich., Oct. 26, 2016 /PRNewswire/ -- Lear Corporation
(NYSE: LEA), a leading global supplier of automotive seating and
electrical systems, today reported record financial results for the
third quarter of 2016. Highlights include:
- Record sales of $4.5 billion,
reflecting continued growth in both segments
- Record net income of $214 million
versus $181 million in the prior
year, an increase of 18%
- Record core operating earnings of $364
million, an increase of 14% from the prior year, with a
record margin of 8.0%, up from 7.4% a year ago
- Earnings per share of $2.98 and
adjusted earnings per share of $3.19,
up 27% and 25%, respectively, from the prior year
- Entered into a strategic partnership with Tempronics for
thermoelectric seat heating and cooling technology
- Lear credit rating upgraded to investment grade by Moody's
- Repurchased 1.3 million shares, approximately 2% of shares
outstanding
- Increasing full year outlook for earnings and cash flow
"Our sales and earnings growth, which continue to outpace the
industry, reflect the investments that we have made to strengthen
our product capabilities and improve our cost structure. In
Seating, our unique capabilities continue to drive market share
gains. In E-Systems, we are extremely well positioned to
capitalize on the rapidly growing vehicle communication and
connectivity mega-trend. In addition, we offer hybrid and
high-power electrical systems, including 48-volt architectures, as
well as industry-leading vehicle battery charging
capabilities. Combined with our low-cost footprint and strong
capital structure, these product capabilities provide Lear with a
competitive advantage and will continue to drive sales and earnings
growth well into the future," said Matt
Simoncini, Lear's president and chief executive officer.
Third Quarter
Financial Results
|
|
|
|
|
|
|
|
(in millions, except
per share amounts)
|
|
|
|
|
2016
|
|
2015
|
Reported –
|
|
|
|
Sales
|
$ 4,526.4
|
|
$ 4,330.3
|
Net income
|
$214.4
|
|
$181.0
|
Earnings per
share
|
$2.98
|
|
$2.34
|
|
|
|
|
Adjusted
(1) –
|
|
|
|
Core operating earnings
|
$363.9
|
|
$320.3
|
Adjusted earnings per share
|
$3.19
|
|
$2.56
|
In the Seating segment, sales were up 5% to $3.5 billion. Excluding the impact of
foreign exchange and commodity prices, sales increased 7%,
reflecting the addition of new business. Segment earnings
were $270 million or 7.7% of sales.
Adjusted segment earnings were $278
million or 7.9% of sales. Adjusted margins improved 70 basis
points from a year ago, reflecting the increase in sales and
favorable operating performance.
In the E-Systems segment, sales were up 4% to $1.0 billion. Excluding the impact of
foreign exchange and commodity prices, sales increased 7%,
reflecting the addition of new business and increased production
volumes on key platforms. Segment earnings were $140 million or 13.8% of sales. Adjusted segment
earnings were $150 million or 14.8%
of sales. Adjusted margins improved 80 basis points from a year
ago, reflecting the increase in sales and favorable operating
performance.
In the third quarter of 2016, net cash provided by operating
activities was $276 million, and free
cash flow was $158 million.
(1)
|
For more information
regarding our non-GAAP financial measures, see "Non-GAAP Financial
Information" below.
|
Lear Enters into a Strategic Partnership with
Tempronics
On September 8, 2016, Lear entered
into a strategic partnership with Tempronics, pursuant to which
Lear obtained a minority equity interest in Tempronics and also
secured exclusive rights to its thermoelectric seat heating and
cooling technology for automotive applications. This
technology will provide Lear with the ability to heat and cool
seats faster while utilizing less energy than systems available
today.
Moody's Upgrades Lear's Senior Unsecured Rating
In recognition of Lear's operating performance and strong
financial position, Moody's upgraded Lear's corporate rating to
investment grade on September 22,
2016. Moody's indicated that Lear's Baa3 rating
reflects "Lear's demonstrated ability to improve profit margins in
both its seating and electronic units through new business, higher
volumes, and ongoing cost reductions."
Share Repurchase Program
During the third quarter of 2016, Lear repurchased approximately
1.3 million shares of its common stock for a total of $153 million. As of the end of the third quarter,
Lear had a remaining share repurchase authorization of $442 million, which expires on December 31, 2017, and reflects approximately 5%
of Lear's total market capitalization at current market
prices.
Since initiating the share repurchase program in early 2011,
Lear has repurchased approximately 40.3 million shares of its
common stock for a total of $3.0
billion at an average price of $73.48 per share. This represents a
reduction of approximately 38% of the Company's shares outstanding
at the time the program began.
Full Year 2016 Financial Outlook
Lear is increasing its full year 2016 financial guidance for
earnings and cash flow based on our strong year-to-date performance
and outlook for the remainder of the year.
The Company's 2016 financial outlook is based on industry
vehicle production assumptions of 17.9 million units in
North America, up 2% from the
prior year, 22.2 million units in Europe and Africa, up 3% from the prior year, and 24.2
million units in China, up 8% from
the prior year. Lear's financial outlook is based on an
average full year exchange rate of $1.11/Euro.
Sales in 2016 are expected to be $18.6
billion, consistent with the Company's prior guidance.
Core operating earnings are expected to be in the range of
$1.50 billion to $1.525 billion, up
from the prior range of $1.45 to $1.50
billion. Net cash provided by operating activities is
expected to be $1.525 billion and
capital spending is expected to be $525
million, resulting in free cash flow of approximately
$1.0 billion, an increase of
$100 million from the prior
guidance.
The Company's effective tax rate is expected to be 27%, compared
to 28% in the prior outlook. Adjusted net income is expected
to be in the range of $980 million to $1.0
billion, up from the prior range of $935 million to $975 million.
Pretax operational restructuring costs are estimated to be
$70 million, and depreciation and
amortization expense is estimated to be $375
million, both unchanged from the prior outlook.
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.
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, 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 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.
Webcast Information
Lear will webcast a conference call to review the Company's
third quarter 2016 financial results and related matters on
October 26, 2016, at 9:00 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 November 9,
2016, with a Conference I.D. of 67642952.
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; the anticipated departure of the
United Kingdom from the European
Union; and other risks described in the Company's Annual Report on
Form 10-K for the year ended December 31,
2015, as supplemented and updated by the Company's Quarterly
Report on Form 10-Q for the quarter ended July 2, 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.
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 140,000 employees
located in 36 countries. Lear currently ranks #154 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
|
|
|
October
1,
|
|
September
26,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net sales
|
|
$
4,526.4
|
|
$
4,330.3
|
|
|
|
|
|
Cost of
sales
|
|
4,012.5
|
|
3,877.1
|
Selling, general and
administrative expenses
|
|
153.6
|
|
137.6
|
Amortization of
intangible assets
|
|
15.2
|
|
13.0
|
Interest
expense
|
|
20.6
|
|
21.4
|
Other expense,
net
|
|
14.2
|
|
21.7
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
310.3
|
|
259.5
|
Income
taxes
|
|
88.2
|
|
76.1
|
Equity in net income
of affiliates
|
|
(12.9)
|
|
(9.9)
|
|
|
|
|
|
Consolidated net
income
|
|
235.0
|
|
193.3
|
Net income
attributable to noncontrolling interests
|
|
20.6
|
|
12.3
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
214.4
|
|
$
181.0
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
2.98
|
|
$
2.34
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
72.1
|
|
77.4
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Statements of Income
|
|
|
|
|
|
(Unaudited; in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Month
|
|
|
Period
Ended
|
|
|
October
1,
|
|
September
26,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Net sales
|
|
$
13,914.1
|
|
$
13,486.8
|
|
|
|
|
|
Cost of
sales
|
|
12,324.1
|
|
12,157.7
|
Selling, general and
administrative expenses
|
|
456.9
|
|
440.8
|
Amortization of
intangible assets
|
|
41.7
|
|
39.5
|
Interest
expense
|
|
62.0
|
|
66.3
|
Other (income)
expense, net
|
|
(0.8)
|
|
60.4
|
|
|
|
|
|
Consolidated income
before income taxes and
|
|
|
|
|
equity in net income
of affiliates
|
|
1,030.2
|
|
722.1
|
Income
taxes
|
|
287.4
|
|
210.9
|
Equity in net income
of affiliates
|
|
(49.2)
|
|
(31.7)
|
|
|
|
|
|
Consolidated net
income
|
|
792.0
|
|
542.9
|
Net income
attributable to noncontrolling interests
|
|
46.8
|
|
32.7
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
745.2
|
|
$
510.2
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
10.10
|
|
$
6.53
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
73.8
|
|
78.2
|
Lear Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
1,
|
|
December
31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,341.6
|
|
$
1,196.6
|
Accounts
receivable
|
|
3,109.5
|
|
2,590.0
|
Inventories
|
|
1,063.0
|
|
947.6
|
Other
|
|
539.7
|
|
552.4
|
|
|
6,053.8
|
|
5,286.6
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
1,920.9
|
|
1,826.5
|
Goodwill
|
|
1,069.4
|
|
1,053.8
|
Other
|
|
1,233.3
|
|
1,238.9
|
|
|
4,223.6
|
|
4,119.2
|
|
|
|
|
|
Total
Assets
|
|
$
10,277.4
|
|
$
9,405.8
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Short-term
borrowings
|
|
$
8.7
|
|
$
-
|
Accounts payable and
drafts
|
|
2,773.2
|
|
2,504.4
|
Accrued
liabilities
|
|
1,668.8
|
|
1,312.1
|
Current portion of
long-term debt
|
|
32.6
|
|
23.1
|
|
|
4,483.3
|
|
3,839.6
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
1,907.3
|
|
1,931.7
|
Other
|
|
643.8
|
|
616.8
|
|
|
2,551.1
|
|
2,548.5
|
|
|
|
|
|
Equity
|
|
3,243.0
|
|
3,017.7
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
10,277.4
|
|
$
9,405.8
|
Lear Corporation
and Subsidiaries
|
|
Supplemental
Data
|
|
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
October
1,
|
|
September
26,
|
|
|
|
|
2016
|
|
2015
|
|
|
Net
Sales
|
|
|
|
|
|
|
North
America
|
|
$
1,859.0
|
|
$
1,896.6
|
|
|
Europe and
Africa
|
|
1,624.6
|
|
1,568.8
|
|
|
Asia
|
|
888.2
|
|
746.3
|
|
|
South
America
|
|
154.6
|
|
118.6
|
|
|
Total
|
|
$
4,526.4
|
|
$
4,330.3
|
|
|
|
|
|
|
|
|
|
Content per
Vehicle 1
|
|
|
|
|
|
|
North
America
|
|
$
424
|
|
$
442
|
|
|
Europe and
Africa
|
|
$
338
|
|
$
321
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
2
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
276.3
|
|
$
278.0
|
|
|
Capital
expenditures
|
|
(118.6)
|
|
(114.8)
|
|
|
Free cash
flow
|
|
$
157.7
|
|
$
163.2
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
98.7
|
|
$
88.0
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings 2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
214.4
|
|
$
181.0
|
|
|
Interest
expense
|
|
20.6
|
|
21.4
|
|
|
Other expense,
net
|
|
14.2
|
|
21.7
|
|
|
Income
taxes
|
|
88.2
|
|
76.1
|
|
|
Equity in net income
of affiliates
|
|
(12.9)
|
|
(9.9)
|
|
|
Net income
attributable to noncontrolling interests
|
|
20.6
|
|
12.3
|
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
|
other
expense
|
|
345.1
|
|
302.6
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
16.8
|
|
15.5
|
|
|
Acquisition and other
related costs
|
|
-
|
|
2.3
|
|
|
Other
|
|
2.0
|
|
(0.1)
|
|
|
Core operating
earnings
|
|
$
363.9
|
|
$
320.3
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear 2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
214.4
|
|
$
181.0
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
16.8
|
|
17.4
|
|
|
Acquisition and other
related costs
|
|
-
|
|
2.3
|
|
|
Other
|
|
0.9
|
|
(0.1)
|
|
|
Tax impact of special
items and other net tax adjustments 3
|
|
(2.4)
|
|
(2.2)
|
|
|
Adjusted net income
attributable to Lear
|
|
$
229.7
|
|
$
198.4
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
72.1
|
|
77.4
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
2.98
|
|
$
2.34
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.19
|
|
$
2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content per Vehicle
for 2015 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.
|
Lear Corporation
and Subsidiaries
|
|
Supplemental
Data
|
|
|
|
|
|
|
|
|
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
October
1,
|
|
September
26,
|
|
|
|
|
2016
|
|
2015
|
|
|
Net
Sales
|
|
|
|
|
|
|
North
America
|
|
$
5,725.9
|
|
$
5,785.6
|
|
|
Europe and
Africa
|
|
5,375.4
|
|
5,027.3
|
|
|
Asia
|
|
2,442.6
|
|
2,314.2
|
|
|
South
America
|
|
370.2
|
|
359.7
|
|
|
Total
|
|
$
13,914.1
|
|
$
13,486.8
|
|
|
|
|
|
|
|
|
|
Content per
Vehicle 1
|
|
|
|
|
|
|
North
America
|
|
$
423
|
|
$
447
|
|
|
Europe and
Africa
|
|
$
321
|
|
$
316
|
|
|
|
|
|
|
|
|
|
Free Cash Flow
2
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
1,093.9
|
|
$
686.0
|
|
|
Settlement of
accounts payable in conjunction with acquisition of
|
|
|
|
|
|
|
Eagle
Ottawa
|
|
-
|
|
45.7
|
|
|
Capital
expenditures
|
|
(300.3)
|
|
(327.7)
|
|
|
Free cash
flow
|
|
$
793.6
|
|
$
404.0
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
$
283.4
|
|
$
257.4
|
|
|
|
|
|
|
|
|
|
Diluted Shares
Outstanding at end of Quarter 3
|
|
71,209,178
|
|
76,562,743
|
|
|
|
|
|
|
|
|
|
Core Operating
Earnings 2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
745.2
|
|
$
510.2
|
|
|
Interest
expense
|
|
62.0
|
|
66.3
|
|
|
Other (income)
expense, net
|
|
(0.8)
|
|
60.4
|
|
|
Income
taxes
|
|
287.4
|
|
210.9
|
|
|
Equity in net income
of affiliates
|
|
(49.2)
|
|
(31.7)
|
|
|
Net income
attributable to noncontrolling interests
|
|
46.8
|
|
32.7
|
|
|
Pretax income before
equity income, interest and
|
|
|
|
|
|
|
other (income)
expense
|
|
1,091.4
|
|
848.8
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
56.4
|
|
75.0
|
|
|
Acquisition and other
related costs
|
|
-
|
|
10.9
|
|
|
Acquisition-related
inventory fair value adjustment
|
|
-
|
|
15.8
|
|
|
Other
|
|
1.4
|
|
0.8
|
|
|
Core operating
earnings
|
|
$
1,149.2
|
|
$
951.3
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Lear 2
|
|
|
|
|
|
|
Net income
attributable to Lear
|
|
$
745.2
|
|
$
510.2
|
|
|
Restructuring costs
and other special items -
|
|
|
|
|
|
|
Costs related to
restructuring actions
|
|
56.4
|
|
76.9
|
|
|
Acquisition and other
related costs
|
|
-
|
|
10.9
|
|
|
Acquisition-related
inventory fair value adjustment
|
|
-
|
|
15.8
|
|
|
Loss on redemption of
bonds
|
|
-
|
|
14.3
|
|
|
(Gain) loss related to
affiliate
|
|
(30.3)
|
|
1.8
|
|
|
Other
|
|
(0.6)
|
|
0.8
|
|
|
Tax impact of special
items and other net tax adjustments 4
|
|
(14.5)
|
|
(32.0)
|
|
|
Adjusted net income
attributable to Lear
|
|
$
756.2
|
|
$
598.7
|
|
|
|
|
|
|
|
|
|
Weighted average
number of diluted shares outstanding
|
|
73.8
|
|
78.2
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share attributable to Lear
|
|
$
10.10
|
|
$
6.53
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
10.25
|
|
$
7.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Content per Vehicle
for 2015 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. 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
|
|
|
|
October
1,
|
|
September
26,
|
|
|
|
2016
|
|
2015
|
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
3,513.3
|
|
$
3,357.1
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
269.5
|
|
$
234.2
|
|
Costs related to
restructuring actions
|
|
8.0
|
|
6.8
|
|
Acquisition and other
related costs
|
|
-
|
|
2.3
|
|
Adjusted segment
earnings
|
|
$
277.5
|
|
$
243.3
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
7.9%
|
|
7.2%
|
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
1,013.1
|
|
$
973.2
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
140.3
|
|
$
132.6
|
|
Costs related to
restructuring actions
|
|
8.6
|
|
3.7
|
|
Other
|
|
1.2
|
|
0.1
|
|
Adjusted segment
earnings
|
|
$
150.1
|
|
$
136.4
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.8%
|
|
14.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
October
1,
|
|
September
26,
|
|
|
|
2016
|
|
2015
|
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
|
Net sales
|
|
$
10,755.7
|
|
$
10,419.8
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
848.8
|
|
$
644.8
|
|
Costs related to
restructuring actions
|
|
33.7
|
|
52.5
|
|
Acquisition and other
related costs
|
|
-
|
|
2.3
|
|
Acquisition-related
inventory fair value adjustment
|
|
-
|
|
15.8
|
|
Other
|
|
(4.0)
|
|
0.1
|
|
Adjusted segment
earnings
|
|
$
878.5
|
|
$
715.5
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
8.2%
|
|
6.9%
|
|
|
|
|
|
|
|
E-Systems
|
|
|
|
|
|
Net sales
|
|
$
3,158.4
|
|
$
3,067.0
|
|
|
|
|
|
|
|
Segment
earnings
|
|
$
441.5
|
|
$
411.5
|
|
Costs related to
restructuring actions
|
|
19.8
|
|
9.6
|
|
Other
|
|
3.6
|
|
0.1
|
|
Adjusted segment
earnings
|
|
$
464.9
|
|
$
421.2
|
|
|
|
|
|
|
|
Adjusted segment
margins
|
|
14.7%
|
|
13.7%
|
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SOURCE Lear Corporation