Lear Corporation Reports Record First Quarter
19 April 2000
Lear Corporation Reports Record First Quarter
SOUTHFIELD, Mich., April 19 Lear Corporation (NYSE: LEA)
today reported record financial performance for the first quarter of 2000.
Sales of $3.8 billion, operating income of $194 million and net income of $62
million, or $.93 per share, are all first quarter records for the company.
"We are very pleased with our record first quarter results, which reflect
strong internal growth as well as the benefits of our fully-integrated
acquisitions," stated Kenneth L. Way, Chairman and Chief Executive Officer of
Lear Corporation. "We are proud of the performance of the entire Lear team,
whose depth and commitment provided the company with its twenty-fourth
consecutive quarter of year-over-year revenue growth since going public in
1994."
Way continued, "This solid financial performance, along with our share
repurchase program, demonstrate our commitment to enhancing shareholder value.
We continue to solidify our position as the premier interior supplier with the
capabilities of designing and manufacturing complete electronically-integrated
interior systems. Our focus on providing exceptional products and innovative
technologies is evidenced by our new business backlog of over $3.3 billion,
including recent electronic and complete interior wins."
Net income for the quarter ended April 1, 2000 increased 23 percent to
$62.0 million, or $.93 per share, compared with $50.3 million, or $.75 per
share, in the first quarter of 1999. Operating income for the first quarter
of 2000 increased 61 percent to $193.7 million, from $120.4 million in the
same quarter of 1999, resulting in operating margin improvement of better than
60 basis points.
Net sales for the quarter rose 42 percent to $3.8 billion, from $2.7
billion in last year's first quarter. The increase was attributable to
incremental revenues from Lear's recent acquisitions, strong internal growth
and higher customer build rates.
Geographically, approximately 40 percent of the current quarter's $1.1
billion sales increase was attributable to Lear's operations outside of the
U.S. and Canada. First quarter sales in Europe increased $316 million, or 37
percent, to $1.2 billion, while sales in other world regions increased $127
million, or 76 percent, to $295 million. U.S. and Canadian sales rose $675
million, or 40 percent, to $2.3 billion.
Lear Corporation, a Fortune 150 company headquartered in Southfield,
Mich., is one of the world's largest automotive suppliers, with 1999 sales of
$12.4 billion. The company's world-class products are designed, engineered
and manufactured by approximately 120,000 employees in over 300 facilities
located in 33 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 as a result 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
2000 1999
Net sales $3,805.1 $2,687.2
Cost of sales 3,448.1 2,468.5
Selling, general and administrative expenses 141.1 84.3
Amortization of goodwill 22.2 14.0
Operating income $193.7 $120.4
Interest expense 78.8 30.1
Other expense, net 9.8 7.9
Income before provision for national income
taxes $105.1 $82.4
Provision for national income taxes 43.1 32.1
Net income $62.0 $50.3
Basic net income per share $0.94 $0.75
Diluted net income per share $0.93 $0.75
Weighted average number of diluted shares outstanding 67.0 67.5
Depreciation and amortization $100.8 $62.3
Capital expenditures $85.4 $71.6
Lear Corporation and Subsidiaries
Consolidated Balance Sheets
(in millions)
April 1, 2000 December 31, 1999
ASSETS (Unaudited) (Audited)
Current Assets:
Cash and cash equivalents $103.1 $106.9
Accounts receivable, net 2,232.8 1,866.1
Inventories 552.6 577.3
Recoverable customer engineering
and tooling 340.5 304.9
Other 334.2 299.0
Total current assets $3,563.2 $3,154.2
Long-Term Assets:
Property, plant and equipment,
net $1,960.0 $1,970.0
Goodwill, net 3,221.2 3,210.5
Other 377.6 382.9
Total long-term assets $5,558.8 $5,563.4
Total Assets $9,122.0 $8,717.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Short-term borrowings $77.5 $103.6
Accounts payable and drafts 2,415.2 2,245.3
Accrued liabilities 1,266.5 1,074.9
Current portion of long-term debt 60.0 63.6
Total current liabilities $3,819.2 $3,487.4
Long-Term Liabilities:
Long-term debt $3,406.6 $3,324.8
Other 414.3 440.1
Total long-term liabilities $3,820.9 $3,764.9
Stockholders' Equity $1,481.9 $1,465.3
Total Liabilities and Stockholders'
Equity $9,122.0 $8,717.6
Lear Corporation and Subsidiaries
Supplemental Data
(Unaudited, in millions, except content per vehicle data)
First Quarter
2000 1999
Sales
U.S. and Canada $2,343 $1,668
Europe 1,167 851
Rest of World 295 168
Total $3,805 $2,687
Operating income before amortization $216 $134
Goodwill amortization (22) (14)
Operating income after amortization $194 $120
Content per vehicle - North America $547 $422
Content per vehicle - Western Europe $253 $185
Content per vehicle - South America $102 $95