Lear Corporation Reports Record First Quarter
26 April 1999
Lear Corporation Reports Record First Quarter
SOUTHFIELD, Mich., April 26 -- Lear Corporation
today reported record sales, operating income and net income for the first
quarter of 1999.
Highlights to date for 1999 include:
* Record first quarter sales - Up 32 percent
* Record first quarter earnings - $.75 per share
* Purchase agreement UT Automotive - Adds $3 billion in sales
* Introduced PVI Method(TM) - Ergonomic total interiors
* Unveiled vehicle for maturing baby boomers - TransG
* Expanded European presence
* Acquired Peregrine Windsor
"We are very pleased with our first quarter results, which reflect the
benefits of improved profitability in Europe, strong North American production
and our strategic acquisition program," stated Kenneth L. Way, Lear Chairman
and Chief Executive Officer. "In addition to our record financial
performance, during the quarter we strengthened our product capabilities in
Europe and showcased PVI and our TransG interior -- which has received
outstanding interest from our customers. Even more importantly, we agreed to
purchase UT Automotive, which had 1998 revenues of $3.0 billion. Not only
will this acquisition be accretive to our 1999 earnings, but with their strong
position in instrument panels and headliners, together with their excellent
electronic and electrical distribution capabilities, we'll be able to deliver
integrated interiors at a level that our competitors currently can't match.
In summary, 1999 is shaping up to be another outstanding year for Lear."
Net income for the quarter ended April 3, 1999 was $50.3 million, or $.75
per share, compared with $47.3 million, or $.69 per share, in the first
quarter of 1998. Operating income for the quarter was $120.4 million, versus
$110.7 million for 1998's first quarter. For the most recent quarter, the
Company had approximately 900,000 fewer shares outstanding on a weighted
average basis.
Net sales for the first quarter of 1999 rose over 32 percent to
approximately $2.7 billion, as compared to approximately $2.0 billion in the
first quarter of 1998. The $655 million first quarter sales increase was
almost evenly split between incremental revenues from Lear's recent
acquisitions and internal growth.
Geographically, almost 33 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 37 percent to $851 million, while sales in
the U.S. and Canada increased 36 percent to approximately $1.7 billion. Due
to softness in the South American market, first quarter sales in the Rest of
World region declined from $182 million to $168 million.
A Fortune 500 Company, Lear Corporation is a top ten automotive supplier,
with 1998 sales of $9.1 billion. The Company's world-class products are
designed, engineered and manufactured by more than 60,000 employees in over
200 facilities located in 28 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
1999 1998
Net sales $2,687.2 $2,032.1
Cost of sales 2,468.5 1,831.9
Selling, general & admin. expenses 84.3 78.0
Amortization of goodwill 14.0 11.5
Operating income 120.4 110.7
Interest expense 30.1 24.7
Other expense 7.9 8.0
Income before provision for
national income taxes 82.4 78.0
Provision for national income taxes 32.1 30.7
Net income $50.3 $47.3
Basic net income per share $0.75 $0.71
Diluted net income per share $0.75 $0.69
Wtd. avg. no. of diluted
shares outstanding 67.5 68.4
Depreciation and amortization $62.3 $54.9
Capital expenditures $71.6 $48.2
LEAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
($ IN MILLIONS)
4/3/99 12/31/98
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 24.6 $ 30.0
Accounts receivable, net 1,482.3 1,373.9
Inventories 321.3 349.6
Other 482.5 444.5
2,310.7 2,198.0
LONG-TERM ASSETS:
Property, plant and equipment, net 1,183.2 1,182.3
Goodwill, net 1,990.9 2,019.8
Other 298.9 277.2
TOTAL ASSETS $ 5,783.7 $ 5,677.3
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 80.3 $ 82.7
Accounts payable 1,728.5 1,600.8
Accrued liabilities 811.4 797.5
Current portion of long-term debt 14.7 16.5
2,634.9 2,497.5
LONG-TERM LIABILITIES:
Deferred national income taxes 42.9 39.0
Long-term debt 1,411.6 1,463.4
Other 397.1 377.4
1,851.6 1,879.8
STOCKHOLDERS' EQUITY 1,297.2 1,300.0
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,783.7 $ 5,677.3