Lear Corporation

Lear Corporation Second-Quarter Earnings Jump 21%

Southfield, Mich. (ots-PRNewswire) - Lear Corporation (NYSE: LEA), the world's fifth-largest automotive supplier, today reported record financial performance for the second quarter of 2000. Net sales of $3.8 billion, operating income of $245.5 million and net income of $101.7 million, or $1.53 per share, are all second-quarter records for the company. Excluding non-recurring items, net income was $88.7 million, or $1.33 per share, a 21 percent increase over the prior year. "Our second-quarter results reflect strong internal growth as well as the benefits of our integrated acquisitions," stated Kenneth L. Way, Chairman and Chief Executive Officer of Lear Corporation. "The performance of the Lear team enabled the company to achieve its twenty-fifth consecutive quarter of year-over-year revenue growth since going public in 1994." Way continued, "The second quarter was a grand slam as we delivered on sales and earnings growth, reduced debt levels, sold non-core assets and repurchased shares." Net income and earnings per share for the quarter ended July 1, 2000, excluding non-recurring items, increased 19 percent and 21 percent, respectively, to $88.7 million, or $1.33 per share, compared with $74.8 million, or $1.10 per share, in the second quarter of 1999. Operating income for the second quarter increased 29 percent to $245.5 million, from $190.8 million in the same quarter of 1999, resulting in operating margin improvement of better than 60 basis points. Net sales for the quarter rose 16 percent to $3.8 billion, from $3.2 billion in last year's second quarter. The increase was attributable to incremental revenues from Lear's recent acquisitions, strong internal growth and higher customer build rates. Geographically, approximately 37 percent of the current quarter's $528 million sales increase was attributable to Lear's operations outside of the U.S. and Canada. In spite of the impact of a weaker Euro, second-quarter sales in Europe increased $48 million, or 5 percent, to $1.1 billion, while sales in other world regions increased $148 million, or 75 percent, to $345 million. U.S. and Canadian sales rose $332 million, or 17 percent, to $2.3 billion. Net income, excluding non-recurring items, for the six months ended July 1, 2000, increased 20 percent to a record $150.7 million, or $2.25 per share, compared with earnings of $125.1 million, or $1.85 per share, in the comparable 1999 period. Operating income for the first six months of 2000 advanced 41 percent to $439.2 million, from $311.2 million in last year's comparable period. Net sales for the six months ended July 1, 2000, rose 28 percent to a record $7.6 billion, from $5.9 billion in 1999. Geographically, 39 percent of the sales increase was attributable to Lear's operations outside of the U.S. and Canada. European sales increased 19 percent to $2.2 billion, while sales in other world regions increased 75 percent to $640 million. U.S. and Canada sales increased 27 percent to $4.7 billion. Lear Corporation, a Fortune 150 company headquartered in Southfield, Mich., USA, focuses on automotive interiors and electronics and is the world's fifth-largest automotive supplier. Sales in 1999 were $12.4 billion. The company's world-class products are designed, engineered and manufactured by more than 120,000 employees in over 300 facilities located in 33 countries. Information about Lear and its products is available on the Internet at 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) Second Quarter Ended 07/01/00 07/03/99 Net sales $3,761.4 $3,233.6 Cost of sales 3,354.4 2,894.4 Selling, general and administrative expenses 138.9 129.1 Amortization of goodwill 22.6 19.3 Operating income $245.5 $190.8 Interest expense 80.7 60.2 Other (income) expense, net (a) (8.5) 7.3 Income before provision for national income taxes $173.3 $123.3 Provision for national income taxes 71.6 48.5 Net income $101.7 $74.8 Basic net income per share $1.54 $1.12 Diluted net income per share $1.53 $1.10 Weighted average number of diluted shares outstanding 66.7 67.9 Depreciation and amortization $98.5 $87.8 Capital expenditures $76.0 $91.0 Six Months Ended 07/01/00 07/03/99 Net sales $7,566.5 $5,920.8 Cost of sales 6,802.5 5,362.9 Selling, general and administrative expenses 280.0 213.4 Amortization of goodwill 44.8 33.3 Operating income $439.2 $311.2 Interest expense 159.5 90.3 Other expense, net (a) 1.3 15.2 Income before provision for national income taxes $278.4 $205.7 Provision for national income taxes 114.7 80.6 Net income $163.7 $125.1 Basic net income per share $2.48 $1.87 Diluted net income per share $2.45 $1.85 Weighted average number of diluted shares outstanding 66.8 67.7 Depreciation and amortization $199.3 $150.1 Capital expenditures $161.4 $162.6 (a) See additional disclosure Lear Corporation and Subsidiaries Consolidated Balance Sheets (In millions) 07/01/00 12/31/99 ASSETS (Unaudited) (Audited) Current Assets: Cash and cash equivalents $93.6 $106.9 Accounts receivable, net 2,115.0 1,866.1 Inventories 495.2 577.3 Recoverable customer engineering and tooling 292.8 304.9 Other 328.0 299.0 Total current assets $3,324.6 $3,154.2 Long-Term Assets: Property, plant and equipment, net $1,912.3 $1,970.0 Goodwill, net 3,281.0 3,210.5 Other 391.3 382.9 Total long-term assets $5,584.6 $5,563.4 Total Assets $8,909.2 $8,717.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-term borrowings $22.3 $103.6 Accounts payable and drafts 2,396.0 2,245.3 Accrued liabilities 1,224.0 1,074.9 Current portion of long-term debt 129.1 63.6 Total current liabilities $3,771.4 $3,487.4 Long-Term Liabilities: Long-term debt $3,150.2 $3,324.8 Other 465.1 440.1 Total long-term liabilities $3,615.3 $3,764.9 Stockholders' Equity $1,522.5 $1,465.3 Total Liabilities and Stockholders' Equity $8,909.2 $8,717.6 Additional Disclosure (a) The Company recorded certain transactions in connection with the divestiture of non-core businesses and assets. On June 14, 2000, the Company completed the sale of its sealants and foam rubber business for approximately $92.5 million, resulting in a gain of $36.6 million. The business had sales of approximately $100 million for the year ended December 31, 1999. The Company also recorded other transactions, including charges related to the disposal of idle plant equipment. The result of these transactions was a net gain of $23.0 million ($ 13.0 million or $ .20 per dilutive share, after tax). Lear Corporation and Subsidiaries Supplemental Data (Unaudited, in millions, except content per vehicle data) Second Quarter Ended 07/01/00 07/03/99 Net sales U.S. and Canada $2,344 $2,012 Europe 1,072 1,024 Rest of World 345 197 Total $3,761 $3,233 Operating income before amortization $268 $210 Goodwill amortization (23) (19) Operating income after amortization $245 $191 Content per vehicle -- North America $568 $482 Content per vehicle -- Western Europe $223 $225 Content per vehicle -- South America $99 $103 Six Months Ended 07/01/00 07/03/99 Net sales U.S. and Canada $4,688 $3,681 Europe 2,239 1,875 Rest of World 640 365 Total $7,567 $5,921 Operating income before amortization $484 $344 Goodwill amortization (45) (33) Operating income after amortization $439 $311 ots Original Text Service: Lear Corporation Internet: http://recherche.newsaktuell.de Contact: Investor Relations, Derek Fiebig, +1-248-447-1624, or Media, Andrea Puchalsky, +1-248-447-1651, both of Lear Corporation Company News On-Call: http://www.prnewswire.com/comp/518304.html or fax, +1-800-758-5804, ext. 518304 Web site: http://www.lear.com Original-Content von: Lear Corporation, übermittelt durch news aktuell

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