SOUTHFIELD, Mich., Oct. 26,
2023 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a
global automotive technology leader in Seating and E-Systems, today
reported results for the third quarter 2023 and increased its full
year 2023 financial outlook.
Third Quarter 2023 Highlights
- Sales increased 10% to $5.8
billion, compared to $5.2
billion in the third quarter of 2022
- Net income of $133 million and
adjusted net income of $170 million,
compared to $92 million and
$140 million, respectively, in the
third quarter of 2022
- Core operating earnings increased 14% to $267 million, compared to $235 million in the third quarter of 2022
- Earnings per share of $2.25 and
adjusted earnings per share of $2.87,
compared to $1.54 and $2.33, respectively, in the third quarter of
2022
- Net cash provided by operating activities of $404 million and free cash flow of $251 million, compared to $252 million and $112
million, respectively, in the third quarter of 2022
- Fifth consecutive quarter of year-over-year margin improvement
in E-Systems
- Received more than twice as many J.D. Power 2023 U.S. Seat
Quality and Satisfaction StudySM awards as any other
seat supplier, with four best in segment and nine total awards
- Awarded first General Motors seat ventilation program,
leveraging our strong customer relationships to accelerate growth
in thermal comfort systems
- Launched complete seats for Stellantis conquest business for
the Wagoneer and Grand Wagoneer premium SUVs
- Named a 2023 PACE award finalist for ReNewKnit™, Lear's premium
and fully recyclable sueded seating surface material
- Cash and cash equivalents at quarter end of $980 million and total liquidity of $3.0 billion
- Accelerated share repurchases, returning $120 million of cash to shareholders through
share repurchases and dividends
"Lear's positive momentum continued in the third quarter with
our fifth consecutive quarter of improved year-over-year results,"
said Ray Scott, Lear's President and
Chief Executive Officer. "Our strategy to streamline our product
portfolio and improve our financial performance in E-Systems is on
track, as the division reported its highest operating margins in
more than two years. In Seating, we were again recognized as
a leader in quality by J.D. Power, third-party validation of Lear's
strength in operational excellence. We also received our
first General Motors seat ventilation award, continuing the
momentum of new business wins in thermal comfort systems. I
am confident that the actions we are taking to provide innovative
solutions for our customers and improve operational efficiency in
both business segments will support continued above market growth,
increased profitability and cash flow, and significant returns for
our shareholders."
Third Quarter
Financial Results
(in millions, except
per share amounts)
|
|
|
2023
|
|
2022
|
Reported
|
|
|
|
Sales
|
$5,781.0
|
|
$5,241.2
|
Net income
|
$132.9
|
|
$92.3
|
Earnings per
share
|
$2.25
|
|
$1.54
|
|
|
|
|
Adjusted(1)
|
|
|
|
Core operating
earnings
|
$267.1
|
|
$234.6
|
Adjusted net
income
|
$169.6
|
|
$139.5
|
Adjusted earnings per
share
|
$2.87
|
|
$2.33
|
In the third quarter, global vehicle production increased by 4%
compared to a year ago, with North
America up 9%, Europe up 6%
and China down 1%. Global vehicle
production increased 8% on a Lear sales-weighted
basis(2).
Sales in the third quarter increased 10% to $5.8 billion
compared to a year ago. Excluding the impact of commodities,
foreign exchange and acquisitions, sales were up 7%, reflecting
increased production on key Lear platforms and the addition of new
business in both of our business segments.
Core operating earnings were $267 million, or 4.6% of
sales, compared to $235 million, or 4.5% of sales, in
2022. The increase in earnings resulted primarily from higher
production on key Lear platforms and the addition of new business.
In the Seating segment, margins and adjusted margins were
5.7% and 6.4% of sales, respectively. In the E-Systems
segment, margins and adjusted margins were 4.0% and 5.3% of sales,
respectively.
Earnings per share were $2.25. Adjusted earnings per
share were $2.87, up 23% compared to a year ago, primarily
reflecting higher operating earnings.
In the third quarter of 2023, net cash provided by operating
activities was $404 million, and free cash
flow(1) was $251 million.
(1) For more information regarding our non-GAAP
financial measures, see "Non-GAAP Financial Information" below.
(2) The production change on a Lear
sales-weighted basis is calculated using Lear's prior year regional
sales mix and third quarter fiscal calendar. Management
believes this provides a more meaningful comparison of the
Company's global revenue growth relative to global vehicle
production.
Share Repurchase Program
During the third quarter of
2023, we repurchased 521,552 shares of our common stock for a total
of $74.9 million. During
the first three quarters of 2023, we repurchased 991,084 shares for
a total of $138.0 million. At
the end of the third quarter, we had a remaining share repurchase
authorization of approximately $1.1
billion, which expires on December
31, 2024, and reflects approximately 14% of our total market
capitalization at current market prices.
Since initiating the share repurchase program in 2011, we have
repurchased 54.2 million shares of our common stock for a total of
$5.0 billion at an average price of
$92.42 per share. This represents a
reduction of approximately 51% of our shares outstanding since the
time we began the program.
Increased 2023 Financial Outlook
Below is our updated
financial outlook, which has increased from the midpoint of our
prior outlook. Our full year financial outlook assumes a
$350 million sales impact from
industry disruptions related to the ongoing UAW strike, including
approximately $325 million in the
fourth quarter. The financial impact from the UAW strike on full
year sales is consistent with our prior outlook.
|
Full Year 2023
Financial Outlook
|
|
|
|
Net Sales
|
$23,100 million -
$23,300 million
|
|
|
Core Operating
Earnings
|
$1,085 million - $1,125
million
|
|
|
Adjusted
EBITDA
|
$1,685 million - $1,725
million
|
|
|
Restructuring
Costs
|
≈$125 million
|
|
|
Operating Cash
Flow
|
$1,230 million - $1,270
million
|
|
|
Capital
Spending
|
≈$675 million
|
|
|
Free Cash
Flow
|
$555 million - $595
million
|
|
|
The industry volume assumptions underlying Lear's 2023 financial
outlook are derived from several sources, including internal
estimates, customer production schedules and the most recent
S&P Global Mobility production estimates for Lear's vehicle
platforms.
The financial outlook is based on a full year average exchange
rate of $1.08/Euro and 7.02 RMB/$.
Certain of the forward-looking financial measures above are
provided on a non-GAAP basis. The Company does not provide a
reconciliation of such forward-looking measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP because to do so would be potentially
misleading and not practical given the difficulty of projecting
event-driven transactional and other non-core operating items in
any future period. The magnitude of these items, however, may be
significant.
Third Quarter 2023 Conference Call and Webcast
Information
A conference call and webcast will be held to
discuss Lear's third quarter 2023 financial results and related
matters on October 26, 2023, at
8:30 a.m. EDT. The webcast link for
the conference call will be available through Lear's investor
relations webpage at ir.lear.com. In addition, the conference call
can be accessed by dialing 1-877-883-0383 (domestic) or
1-412-902-6506 (international) with Conference I.D. 7035224. The
webcast replay will be available two hours following the call.
Non-GAAP Financial Information
In addition to the
results reported in accordance with accounting principles generally
accepted in the United States
(GAAP) included throughout this press release, the Company has
provided information regarding "pretax income before equity income,
interest, other expense, restructuring costs and other special
items" (core operating earnings or adjusted segment earnings),
"pretax income before equity income, interest, other expense,
depreciation expense, amortization of intangible assets,
restructuring costs and other special items" (adjusted EBITDA),
"adjusted depreciation and amortization," "adjusted net income
attributable to Lear" (adjusted net income), "adjusted diluted net
income per share attributable to Lear" (adjusted earnings per
share) and "free cash flow" (each, a non-GAAP financial measure).
Other expense includes, among other things, non-income related
taxes, foreign exchange gains and losses, gains and losses related
to certain derivative instruments and hedging activities, gains and
losses on the disposal of fixed assets and the non-service cost
components of net periodic benefit cost. Adjusted depreciation and
amortization represents depreciation expense and amortization of
intangible assets adjusted for intangible asset impairment charges.
Adjusted net income and adjusted earnings per share represent net
income attributable to Lear and diluted net income per share
attributable to Lear, respectively, adjusted for restructuring
costs and other special items, including the tax effect thereon.
Free cash flow represents net cash provided by operating
activities, excluding the settlement of accounts payable in
conjunction with the acquisition of IGB, less capital
expenditures.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position and results of
operations. In particular, management believes that core operating
earnings, adjusted EBITDA, adjusted depreciation and amortization,
adjusted net income and adjusted earnings per share are useful
measures in assessing the Company's financial performance by
excluding certain items that are not indicative of the Company's
core operating performance or that may obscure trends useful in
evaluating the Company's continuing operating activities.
Management also believes that these measures provide improved
comparability between fiscal periods. Management believes that free
cash flow is useful to both management and investors in their
analysis of the Company's ability to service and repay its debt.
Further, management uses these non-GAAP financial measures for
planning and forecasting future periods.
Core operating earnings, adjusted EBITDA, adjusted depreciation
and amortization, adjusted net income, adjusted earnings per share
and free cash flow should not be considered in isolation or as a
substitute for net income attributable to Lear, diluted net income
per share attributable to Lear, cash provided by operating
activities or other income statement or cash flow statement data
prepared in accordance with GAAP or as a measure of profitability
or liquidity. In addition, the calculation of free cash flow does
not reflect cash used to service debt and, therefore, does not
reflect funds available for investment or other discretionary uses.
Also, these non-GAAP financial measures, as determined and
presented by the Company, may not be comparable to related or
similarly titled measures reported by other companies.
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,
2022, and its other Securities and Exchange Commission
filings. Future operating results will be based on various factors,
including actual industry production volumes, supply chain
disruptions, labor disruptions, commodity prices, changes in
foreign exchange rates, the impact of restructuring actions 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 Company enters into contracts with
its customers to provide production parts generally at the
beginning of a vehicle's life cycle. Typically, these contracts do
not provide for a specified quantity of production, and many of
these contracts may be terminated by the Company's customers at any
time. Therefore, these contracts do not represent firm orders.
Further, 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.
About Lear Corporation
Lear, a global automotive
technology leader in Seating and E-Systems, enables superior
in-vehicle experiences for consumers around the world. Lear's
diverse team of talented employees in 37 countries is driven by a
commitment to innovation, operational excellence, and
sustainability. Lear is Making every drive better™ by providing the
technology for safer, smarter, and more comfortable journeys. Lear,
headquartered in Southfield,
Michigan, serves every major automaker in the world and
ranks 189 on the Fortune 500. Further information about Lear is
available at lear.com or on Twitter @LearCorporation.
Lear Corporation and
Subsidiaries
Condensed
Consolidated Statements of Income
(Unaudited; in
millions, except per share amounts)
|
|
|
|
Three Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Net sales
|
|
$
5,781.0
|
|
$
5,241.2
|
|
|
|
|
|
Cost of
sales
|
|
5,362.8
|
|
4,864.3
|
Selling, general and
administrative expenses
|
|
182.5
|
|
163.9
|
Amortization of
intangible assets
|
|
15.5
|
|
15.2
|
Interest
expense
|
|
25.7
|
|
24.8
|
Other expense,
net
|
|
5.8
|
|
18.1
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
188.7
|
|
154.9
|
Income taxes
|
|
47.0
|
|
41.7
|
Equity in net income of
affiliates
|
|
(10.4)
|
|
(6.0)
|
|
|
|
|
|
Consolidated net
income
|
|
152.1
|
|
119.2
|
Net income attributable
to noncontrolling interests
|
|
19.2
|
|
26.9
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
132.9
|
|
$
92.3
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to Lear
|
|
$
2.25
|
|
$
1.54
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
59.1
|
|
59.8
|
Lear Corporation and
Subsidiaries
Condensed
Consolidated Statements of Income
(Unaudited; in
millions, except per share amounts)
|
|
|
|
Nine Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Net sales
|
|
$
17,625.7
|
|
$
15,520.6
|
|
|
|
|
|
Cost of
sales
|
|
16,320.5
|
|
14,482.3
|
Selling, general and
administrative expenses
|
|
542.1
|
|
512.4
|
Amortization of
intangible assets
|
|
47.4
|
|
55.5
|
Interest
expense
|
|
76.1
|
|
74.6
|
Other expense,
net
|
|
39.0
|
|
59.8
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
600.6
|
|
336.0
|
Income taxes
|
|
134.1
|
|
85.6
|
Equity in net income of
affiliates
|
|
(36.2)
|
|
(21.0)
|
|
|
|
|
|
Consolidated net
income
|
|
502.7
|
|
271.4
|
Net income attributable
to noncontrolling interests
|
|
57.5
|
|
61.2
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
445.2
|
|
$
210.2
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
7.50
|
|
$
3.50
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
59.3
|
|
60.0
|
Lear Corporation and
Subsidiaries
Condensed
Consolidated Balance Sheets
(In
millions)
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
979.7
|
|
$
1,114.9
|
Accounts
receivable
|
|
4,041.2
|
|
3,451.9
|
Inventories
|
|
1,788.3
|
|
1,573.6
|
Other
|
|
928.5
|
|
853.7
|
|
|
7,737.7
|
|
6,994.1
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
2,886.0
|
|
2,854.0
|
Goodwill
|
|
1,714.1
|
|
1,660.6
|
Other
|
|
2,275.9
|
|
2,254.3
|
|
|
6,876.0
|
|
6,768.9
|
|
|
|
|
|
Total Assets
|
|
$
14,613.7
|
|
$
13,763.0
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Short-term
borrowings
|
|
$
26.7
|
|
$
9.9
|
Accounts payable and
drafts
|
|
3,556.5
|
|
3,206.1
|
Accrued
liabilities
|
|
2,117.9
|
|
1,961.5
|
Current portion of
long-term debt
|
|
0.3
|
|
10.8
|
|
|
5,701.4
|
|
5,188.3
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
2,742.1
|
|
2,591.2
|
Other
|
|
1,186.9
|
|
1,153.2
|
|
|
3,929.0
|
|
3,744.4
|
|
|
|
|
|
Equity
|
|
4,983.3
|
|
4,830.3
|
|
|
|
|
|
Total Liabilities and Equity
|
|
$
14,613.7
|
|
$
13,763.0
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Net Sales
|
|
|
|
|
North
America
|
|
$
2,381.4
|
|
$
2,284.2
|
Europe and
Africa
|
|
2,015.4
|
|
1,588.8
|
Asia
|
|
1,142.5
|
|
1,142.9
|
South
America
|
|
241.7
|
|
225.3
|
Total
|
|
$
5,781.0
|
|
$
5,241.2
|
|
|
|
|
|
Content per Vehicle 1
|
|
|
|
|
North
America
|
|
$
598
|
|
$
636
|
Europe and
Africa
|
|
$
508
|
|
$
432
|
|
|
|
|
|
Free Cash Flow 2
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
403.8
|
|
$
252.1
|
Capital
expenditures
|
|
(153.2)
|
|
(140.4)
|
Free cash
flow
|
|
$
250.6
|
|
$
111.7
|
|
|
|
|
|
Core Operating Earnings 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
132.9
|
|
$
92.3
|
Interest
expense
|
|
25.7
|
|
24.8
|
Other expense,
net
|
|
5.8
|
|
18.1
|
Income
taxes
|
|
47.0
|
|
41.7
|
Equity in net income
of affiliates
|
|
(10.4)
|
|
(6.0)
|
Net income
attributable to noncontrolling interests
|
|
19.2
|
|
26.9
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
48.0
|
|
18.6
|
Acquisition
costs
|
|
0.4
|
|
0.3
|
Impairments related to
Russian operations
|
|
0.4
|
|
19.9
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(3.5)
|
|
(0.6)
|
Other
|
|
1.6
|
|
(1.4)
|
Core operating
earnings
|
|
$
267.1
|
|
$
234.6
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(continued)
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Adjusted Net Income and Adjusted Earnings Per
Share 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
132.9
|
|
$
92.3
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
48.0
|
|
18.6
|
Acquisition
costs
|
|
0.4
|
|
0.3
|
Other
acquisition-related costs
|
|
—
|
|
10.6
|
Impairments related to
Russian operations
|
|
0.4
|
|
19.9
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(7.5)
|
|
(0.6)
|
Foreign exchange
(gains) losses due to foreign exchange rate volatility related to
Russia
|
|
(0.7)
|
|
0.8
|
Other
|
|
3.5
|
|
0.6
|
Tax impact of special
items and other net tax adjustments 3
|
|
(7.4)
|
|
(3.0)
|
Adjusted net
income
|
|
$
169.6
|
|
$
139.5
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
59.1
|
|
59.8
|
|
|
|
|
|
Diluted net income per
share available to Lear
|
|
$
2.25
|
|
$
1.54
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
2.87
|
|
$
2.33
|
|
|
|
|
|
Adjusted Depreciation and Amortization
2
|
|
|
|
|
Depreciation and
amortization
|
|
$
151.9
|
|
$
139.3
|
Less - Intangible asset
impairment
|
|
—
|
|
—
|
Adjusted depreciation
and amortization
|
|
$
151.9
|
|
$
139.3
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(continued)
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Nine Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Net Sales
|
|
|
|
|
North
America
|
|
$
7,231.2
|
|
$
6,675.5
|
Europe and
Africa
|
|
6,438.9
|
|
5,124.7
|
Asia
|
|
3,271.1
|
|
3,089.0
|
South
America
|
|
684.5
|
|
631.4
|
Total
|
|
$
17,625.7
|
|
$
15,520.6
|
|
|
|
|
|
Content per Vehicle 1
|
|
|
|
|
North
America
|
|
$
605
|
|
$
621
|
Europe and
Africa
|
|
$
478
|
|
$
434
|
|
|
|
|
|
Free Cash Flow 2
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
679.6
|
|
$
484.2
|
Settlement of accounts
payable in conjunction with acquisition of IGB
|
|
15.4
|
|
—
|
Capital
expenditures
|
|
(433.3)
|
|
(442.9)
|
Free cash
flow
|
|
$
261.7
|
|
$
41.3
|
|
|
|
|
|
Core Operating Earnings 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
445.2
|
|
$
210.2
|
Interest
expense
|
|
76.1
|
|
74.6
|
Other expense,
net
|
|
39.0
|
|
59.8
|
Income
taxes
|
|
134.1
|
|
85.6
|
Equity in net income
of affiliates
|
|
(36.2)
|
|
(21.0)
|
Net income
attributable to noncontrolling interests
|
|
57.5
|
|
61.2
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
96.9
|
|
93.5
|
Acquisition
costs
|
|
0.9
|
|
9.6
|
Acquisition-related
inventory fair value adjustment
|
|
1.8
|
|
1.1
|
Impairments related to
Russian operations
|
|
1.5
|
|
19.9
|
Intangible asset
impairment
|
|
1.9
|
|
8.9
|
(Insurance recoveries)
costs related to typhoon in the Philippines, net
|
|
(3.3)
|
|
3.9
|
Other
|
|
16.9
|
|
(1.6)
|
Core operating
earnings
|
|
$
832.3
|
|
$
605.7
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(continued)
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Nine Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Adjusted Net Income Attributable to
Lear 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
445.2
|
|
$
210.2
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
96.9
|
|
93.5
|
Acquisition
costs
|
|
0.9
|
|
9.6
|
Acquisition-related
inventory fair value adjustment
|
|
1.8
|
|
1.1
|
Other
acquisition-related costs
|
|
—
|
|
10.6
|
Impairments related to
Russian operations
|
|
1.5
|
|
19.9
|
Intangible asset
impairment
|
|
1.9
|
|
8.9
|
(Insurance recoveries)
costs related to typhoon in the Philippines, net
|
|
(7.3)
|
|
3.9
|
Foreign exchange
(gains) losses due to foreign exchange rate volatility related to
Russia
|
|
(2.7)
|
|
14.5
|
Loss related to
affiliate
|
|
5.0
|
|
—
|
Other
|
|
14.6
|
|
11.2
|
Tax impact of special
items and other net tax adjustments 3
|
|
(24.5)
|
|
(28.4)
|
Adjusted net income
attributable to Lear
|
|
$
533.3
|
|
$
355.0
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
59.3
|
|
60.0
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
7.50
|
|
$
3.50
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
8.99
|
|
$
5.91
|
|
|
|
|
|
Adjusted Depreciation and Amortization
2
|
|
|
|
|
Depreciation and
amortization
|
|
$
450.3
|
|
$
434.3
|
Less - Intangible asset
impairment
|
|
1.9
|
|
8.9
|
Adjusted depreciation
and amortization
|
|
$
448.4
|
|
$
425.4
|
|
|
|
|
|
Diluted Shares Outstanding at End of Period
4
|
|
58,746,353
|
|
59,653,949
|
|
|
|
|
|
|
1 Content per Vehicle for 2022 has been
updated to reflect actual production levels.
|
|
|
|
|
|
2 See "Non-GAAP Financial Information"
included in this press release.
|
|
|
|
|
|
|
|
|
|
3 Represents the tax effect of
restructuring costs and other special items, as well as several
discrete tax items. The identification of these tax items is
judgmental in nature, and their calculation is based on various
assumptions and estimates.
|
|
|
|
|
|
4 Calculated using stock price at end of
quarter.
|
|
|
|
|
Lear Corporation and
Subsidiaries
Segment Supplemental
Data
(Unaudited; in
millions, except margins)
|
|
|
|
Three Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Adjusted Segment Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
4,284.9
|
|
$
3,887.8
|
|
|
|
|
|
Segment
earnings
|
|
$
244.7
|
|
$
222.6
|
Restructuring costs
and other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
28.5
|
|
12.0
|
Impairments related to
Russian operations
|
|
0.4
|
|
19.9
|
Other
|
|
1.3
|
|
0.3
|
Adjusted segment
earnings
|
|
$
274.9
|
|
$
254.8
|
|
|
|
|
|
Segment
margins
|
|
5.7 %
|
|
5.7 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.4 %
|
|
6.6 %
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$
1,496.1
|
|
$
1,353.4
|
|
|
|
|
|
Segment
earnings
|
|
$
60.4
|
|
$
46.8
|
Restructuring and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
19.5
|
|
6.5
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(3.5)
|
|
(0.7)
|
Other
|
|
2.5
|
|
0.8
|
Adjusted segment
earnings
|
|
$
78.9
|
|
$
53.4
|
|
|
|
|
|
Segment
margins
|
|
4.0 %
|
|
3.5 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.3 %
|
|
3.9 %
|
Lear Corporation and
Subsidiaries
Segment Supplemental
Data
(continued)
(Unaudited; in
millions, except margins)
|
|
|
|
Nine Months Ended
|
|
|
September 30,
2023
|
|
October 1,
2022
|
Adjusted Segment Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$ 13,206.0
|
|
$ 11,674.4
|
|
|
|
|
|
Segment
earnings
|
|
$
823.4
|
|
$
636.6
|
Costs related to
restructuring actions
|
|
65.8
|
|
47.5
|
Acquisition
costs
|
|
—
|
|
0.1
|
Acquisition-related
inventory fair value adjustment
|
|
1.8
|
|
1.1
|
Impairments related to
Russian operations
|
|
1.5
|
|
19.9
|
Costs related to
typhoon in the Philippines
|
|
—
|
|
0.1
|
Other
|
|
4.9
|
|
0.6
|
Adjusted segment
earnings
|
|
$
897.4
|
|
$
705.9
|
|
|
|
|
|
Segment
margins
|
|
6.2 %
|
|
5.5 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.8 %
|
|
6.0 %
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$
4,419.7
|
|
$
3,846.2
|
|
|
|
|
|
Segment
earnings
|
|
$
155.6
|
|
$
64.7
|
Costs related to
restructuring actions
|
|
29.9
|
|
40.9
|
Intangible asset
impairment
|
|
1.9
|
|
8.9
|
(Insurance recoveries)
costs related to typhoon in the Philippines, net
|
|
(3.6)
|
|
3.3
|
Other
|
|
7.3
|
|
1.8
|
Adjusted segment
earnings
|
|
$
191.1
|
|
$
119.6
|
|
|
|
|
|
Segment
margins
|
|
3.5 %
|
|
1.7 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
4.3 %
|
|
3.1 %
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lear-reports-third-quarter-results-and-increases-2023-financial-outlook-301968057.html
SOURCE Lear Corporation