SOUTHFIELD, Mich., Feb. 14, 2018 /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 $1.5
billion and extended the authorization period until
December 31, 2020. In addition,
the Board raised the quarterly cash dividend on the Company's
common stock by 40% from $0.50 per
share to $0.70 per share. The
next dividend is payable on March 26,
2018 to shareholders of record at the close of business on
March 7, 2018.
"The Company's record financial performance, balance sheet
strength and very favorable outlook are allowing us to
significantly increase our dividend and continue our proven track
record of returning capital to our shareholders," said Matt Simoncini, Lear President and Chief
Executive Officer. "For some time now, we have made
significant investments in our business which have given Lear
unique product capabilities and an industry-leading cost
structure. Today we are in the strongest competitive position
in our 100-year history. Over the last five years, we have
returned record levels of cash to our shareholders in the form of
dividends and share repurchases. Lear's total return to
shareholders during this period was 300%, better than any of our
peers and three times the return for the S&P 500."
"Lear's Board of Directors fully supports the Company's balanced
strategy of investing in the business and consistently returning
cash to shareholders, while maintaining a strong and flexible
balance sheet. The shareholder actions announced today are
consistent with this strategy and demonstrate the confidence Lear's
Board has in the Company's outlook," said Henry D. G. Wallace, Lear's Non-Executive
Chairman.
At the end of 2017, Lear had $546
million remaining on its share repurchase
authorization. Including today's action, Lear's total
available share repurchase authorization is now $1.5 billion. Since the Company began its
share repurchase and dividend programs in 2011, Lear has returned
approximately $4 billion to
shareholders, including the repurchase of 42% of the Company's
shares outstanding at the commencement of our share repurchase
program.
Lear may implement share repurchases under its share repurchase
authorization utilizing a variety of methods including open market
purchases, accelerated share repurchase programs, privately
negotiated transactions 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 2018 Annual Stockholders Meeting will be held on
May 17, 2018 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 2018 Annual Meeting
is March 22, 2018.
About Lear Corporation
Lear Corporation was founded in Detroit in 1917 as American Metal
Products. Today, Lear is one of the world's leading suppliers
of automotive seating and electrical systems (E-Systems).
Lear serves every major automaker in the world, and Lear content
can be found on more than 400 vehicle nameplates. Lear's
world-class products are designed, engineered and manufactured by a
diverse team of approximately 165,000 employees at 257 locations in
39 countries. Lear currently ranks #151 on the Fortune
500. Lear's headquarters are in Southfield, Michigan. Further
information about Lear is available at lear.com or follow us on
Twitter
@LearCorporation.
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, 2017 and its other Securities and
Exchange Commission filings. Future operating results will be based
on many 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