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News of  February 15, 2000
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Lear Corporation Reports Record Fourth Quarter and Full Year 1999 Results
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SOUTHFIELD, Mich. - Lear Corporation reported record fourth quarter and full year sales, operating income and net income for fiscal 1999.

Highlights for 1999 included:

  • Sales rose 37 percent to a record $12.4 billion
  • 18th consecutive year of sales growth
  • Record operating income of $713 million
  • Record net income of $257 million
  • Record earnings per share of $3.80
  • Successfully integrated strategic acquisitions
  • Won first major interior business in France
  • Awarded significant electronics programs
  • Business backlog increase to $3.3 billion

"We are pleased with our record fourth quarter and full year results, which reflect the benefit of acquisitions as well as improved operating margins in our base business," stated Kenneth L. Way, Chairman and Chief Executive Officer of Lear Corporation. "A year ago our backlog stood at $2.0 billion and it now stands at $3.3 billion and includes four recent North American complete interior awards." Way continued, "These accomplishments continue to demonstrate Lear's ability to create value, adapt rapidly, and advance relentlessly in developing exciting new ways to serve our global customers."

Net income for the quarter ended December 31, 1999 increased to $92.7 million, or $1.37 per share, compared with a loss of $19.1 million, or ($.28) per share, last year. Excluding restructuring charges and credits, net income for the quarter rose 25 percent to $91.7 million, or $1.36 per share, compared with net income of $73.4 million, or $1.09 per share, for the same quarter in 1998. Operating income for the fourth quarter of 1999, excluding the restructuring charges and credits, increased by 58 percent to $246.0 million, from $155.8 million in the fourth quarter of 1998.

Net sales for the fourth quarter of 1999 rose 19 percent to $3.5 billion, from $2.9 billion last year. The increase was attributable to incremental revenues from Lear's recent acquisitions as well as internal growth. Geographically, approximately 36 percent of the current quarter's $555.5 million sales increase was attributable to Lear's operations outside of the U.S. and Canada. Fourth quarter 1999 sales in Europe increased nearly 15 percent to $1.1 billion, while sales in other world regions increased 32 percent to $237 million. U.S. and Canadian sales in the fourth quarter of 1999 rose over 20 percent to nearly $2.1 billion.

Net income for the full year ended December 31, 1999 increased to $257.1 million, or $3.80 per share, compared with earnings of $115.5 million, or $1.70 per share, last year. Excluding restructuring charges and credits, net income for 1999 rose 22 percent to $254.5 million, or $3.76 per share, compared with net income of $208 million, or $3.06 per share, for 1998. Operating income for the full year of 1999, excluding restructuring charges and credits, advanced 49 percent to $708.9 million, from $475.2 million last year.

Net sales for the full year ended December 31, 1999 rose 37 percent to $12.4 billion from last year's sales of $9.1 billion. Geographically, 31 percent of the sales increase for the full year 1999 was attributable to Lear's operations outside of the U.S. and Canada. For the full year of 1999, European sales increased 35 percent to $3.9 billion, while sales in other world regions increased approximately 4 percent to $812 million. U.S. and Canadian sales for the full year of 1999 increased more than 43 percent to $7.7 billion.

Due to over $550 million of cash flows from operations for 1999, the ratio of net debt to total capitalization ended the year at 69.8%. Way concluded, "1999 was another outstanding year for Lear, as we exceeded all of our financial goals. Entering the new millennium, we are positioned to provide our shareholders with continued double-digit earnings growth, by selling exciting new products, generating strong cash flows, and through a continued emphasis on operational efficiency."

(Feb. 14, 2000)

 

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