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Lear Corp Q1'FY14 sales ascend 10%

26 Apr '14

2 min read

Lear Corporation, a leading global supplier of automotive seating and electrical distribution systems, reported financial results for the first quarter.

Highlights:

-Sales of $4.4 billion, up 10% from a year ago, with both business segments growing faster than the industry

-Core operating earnings of $243 million, up 21%; adjusted earnings per share of $1.84, up 42%

-Seating sales up 11% and earnings up 8%

-Record sales and earnings in Electrical; 18th consecutive quarter of year-over-year margin improvement

-Completed $325 million debt refinancing; lowered average interest rate and extended debt maturity profile

-Increased quarterly cash dividend per share by 18%

-Completed $800 million accelerated share repurchase program that was initiated in April 2013

-Increased full year outlook for sales, core operating earnings and free cash flow

Business Conditions

In the first quarter, global vehicle production increased 5% from a year ago, reflecting production increases in each of the three largest automotive markets in the world. Production was up 11% in China, 7% in Europe & Africa and 6% in North America. Production was down 8% in South America.

"In the first quarter, we continued our positive sales and earnings momentum," said Matt Simoncini, Lear's president and chief executive officer. "With a strong start to 2014, we are on track to deliver our fifth consecutive year of higher sales and earnings per share. Our strong financial results reflect the investments that we have made to strengthen our product offerings, improve our cost structure and grow our business. Consistent with our strategy, we plan to continue to invest in value-creation opportunities in our core Seating and Electrical businesses, while maintaining a strong and flexible financial position."

First Quarter 2014 Financial Results

For the first quarter of 2014, Lear reported sales of $4.4 billion, core operating earnings of $243 million, net income of $122 million and adjusted earnings per share of $1.84. This compares with sales of $3.9 billion, core operating earnings of $201 million, net income of $109 million and adjusted earnings per share of $1.30 in the first quarter of 2013.

In the Seating segment, sales were up 11% to $3.2 billion, reflecting the addition of new business and higher production on key platforms. Adjusted segment earnings were $177 million or 5.5% of sales. Earnings increased from last year, primarily reflecting the increase in sales and favorable operating performance, partially offset by the impact of key program changeovers.

Click here to view full results.

Lear Corporation