International Growth Fuels Lear's Record First Quarter
21 April 1998
International Growth Fuels Lear's Record First Quarter
SOUTHFIELD, Mich., April 21 -- Lear Corporation
today reported record sales, operating income and net income for the first
quarter of 1998. Net sales increased 18 percent for the quarter, with almost
80 percent of the increase coming from Lear's international operations.
Net income for the quarter ended March 28, 1998 was $47.3 million, or $.69
per share, compared with $41.9 million, or $.62 per share in the first quarter
of 1997. Operating income for the quarter was $110.7 million, versus $102.1
million for 1997's first quarter. For the most recent quarter, the Company
had approximately four hundred thousand more shares outstanding on a diluted
weighted average basis.
Commenting on the first quarter results, Lear Chairman and Chief Executive
Officer, Kenneth L. Way stated, "We are pleased with our record first quarter
results. Lear's financial performance continues to benefit from our asset
management, product breadth, the strength of light trucks in the North
American market and our strategic acquisition program."
Net sales for the first quarter of 1998 were approximately $2.0 billion,
compared to approximately $1.7 billion in the first quarter of 1997. The $308
million first quarter sales increase is attributable to additional revenues
from Lear's 1997 acquisitions as well as internal growth. Sales in the 1998
first quarter were negatively impacted by approximately $62 million due to
foreign exchange translation.
Geographically, almost 80 percent of the first quarter's sales increase
was attributable to Lear's operations outside of the U.S. and Canada. Sales
for Lear's European operations rose 50 percent to $623.0 million, while sales
in other world regions advanced 24 percent to $182.2 million. First quarter
sales in the U.S. and Canada increased six percent to approximately $1.2
billion.
Way continued, "Our strategic focus on providing our customers with
integrated interior products, combined with the continuous improvement of our
organization, continues to generate record sales and profits. Lear's market
leadership reflects these strengths which result from the efforts of our
entire global work force. We remain confident that this focus will make 1998
another outstanding year for the Company."
A Fortune 500 Company, Lear Corporation is one of the world's largest
automotive suppliers, with 1997 sales of $7.3 billion. The Company's world-
class products are designed, engineered and manufactured by more than 50,000
employees in over 170 facilities located in 25 countries. Information about
Lear and its products is available on the Internet at http://www.lear.com.
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Actual results may
differ materially from the anticipated results because of certain risks and
uncertainties, including but not limited to general economic conditions in the
markets in which Lear operates, fluctuations in the production of vehicles for
which the Company is a supplier, labor disputes involving the Company or its
significant customers, risks associated with conducting business in foreign
countries and other risks detailed from time to time in the Company's
Securities and Exchange Commission filings.
LEAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE DATA)
First Quarter
1998 1997
Net sales $2,032.1 $1,724.0
Cost of sales 1,831.9 1,546.1
Selling, general & admin. expenses 78.0 66.1
Amortization of goodwill 11.5 9.7
Operating income 110.7 102.1
Interest expense 24.7 27.2
Other expense 8.0 5.5
Income before provision for
national income taxes 78.0 69.4
Provision for national income taxes 30.7 27.5
Net income $47.3 $41.9
Basic net income per share $0.71 $0.64
Diluted net income per share $0.69 $0.62
Wtd. avg. no. of diluted
shares outstanding 68.4 68.0
Depreciation and amortization $54.9 $43.5
Capital expenditures $48.2 $32.6
LEAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
($ IN MILLIONS)
3/28/98 12/31/97
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $18.3 $12.9
Accounts receivable, net 1,264.1 1,065.8
Inventories 246.6 231.4
Other 364.6 304.8
1,893.6 1,614.9
LONG-TERM ASSETS:
Property, plant and equipment, net 943.5 939.1
Goodwill, net 1,669.0 1,692.3
Other 230.7 212.8
TOTAL ASSETS $4,736.8 $4,459.1
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $30.6 $37.9
Accounts payable 1,221.5 1,186.5
Accrued liabilities 682.4 620.5
Current portion of long-term debt 12.4 9.1
1,946.9 1,854.0
LONG-TERM LIABILITIES:
Deferred national income taxes 67.3 61.7
Long-term debt 1,202.7 1,063.1
Other 274.8 273.3
1,544.8 1,398.1
STOCKHOLDERS' EQUITY 1,245.1 1,207.0
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $4,736.8 $4,459.1
SOURCE Lear Corporation