SOUTHFIELD, Mich., Feb. 6, 2024
/PRNewswire/ -- Lear Corporation (NYSE: LEA), a global automotive
technology leader in Seating and E-Systems, today reported results
for the fourth quarter and full year 2023 and provided its
financial outlook for the full year 2024.
Fourth Quarter 2023 Highlights
- Sales increased 9% to $5.8
billion, compared to $5.4
billion in the fourth quarter of 2022
- Net income of $127 million and
adjusted net income of $177 million,
compared to $118 million and
$168 million, respectively, in the
fourth quarter of 2022
- Core operating earnings increased 9% to $288 million, compared to $265 million in the fourth quarter of
2022
- Earnings per share of $2.18 and
adjusted earnings per share of $3.03,
compared to $1.97 and $2.81, respectively, in the fourth quarter
of 2022
- Net cash provided by operating activities of $570 million and free cash flow of $377 million, compared to $537 million and $342
million, respectively, in the fourth quarter of 2022
- Sixth consecutive quarter of year-over-year improvements in
sales and core operating earnings
- Repurchased $175 million of Lear
shares, the highest level of share repurchases in any quarter since
the fourth quarter of 2018
Full Year 2023 Highlights
- Sales increased 12% to a record $23.5
billion, compared to $20.9
billion for the full year of 2022
- Net income of $573 million and
adjusted net income of $710 million,
compared to $328 million and
$523 million, respectively, for the
full year 2022
- Core operating earnings increased 29% to $1,120 million, compared to $871 million for the full year 2022
- Earnings per share of $9.68 and
adjusted earnings per share of $12.02, compared to $5.47 and $8.72, respectively, for the full year
2022
- Adjusted earnings per share increased 38%, reflecting higher
earnings and the benefit of our share repurchase program
- Net cash provided by operating activities of $1,249 million and free cash flow of $638 million, compared to $1,021 million and $383
million, respectively, for the full year 2022
- Repurchased $313 million of Lear
shares and paid $182 million in
dividends
- Cash and cash equivalents at year-end of $1.2 billion and total liquidity of $3.2 billion
- Completed acquisition of IGB and outlined Seating Thermal
Comfort Systems strategy, which will support market share gains and
earnings growth
- $2.8 billion core sales backlog
for 2024-2026 supporting continued sales growth in both business
segments
"Lear delivered record sales and strong earnings growth in 2023,
reflecting the execution of our strategy and a recovering
industry," said Ray Scott, Lear's
President and Chief Executive Officer. "During 2023, we
completed the IGB acquisition, which added new product technology
and scale to our growing thermal comfort systems business. I
am incredibly excited by the strong customer response to our
thermal comfort systems strategy, which we believe will result in
increased market share and higher margins in Seating.
Positive momentum in E-Systems continued as we achieved our
sixth consecutive quarter of year-over-year margin improvement,
driven by new business and performance improvements. As we enter
2024, we are expecting another year of increased revenue, earnings
and cash flow."
Fourth Quarter
Financial Results
(in millions, except
per share amounts)
|
|
|
2023
|
|
2022
|
Reported
|
|
|
|
Sales
|
$5,841.2
|
|
$5,370.9
|
Net income
|
$127.3
|
|
$117.5
|
Earnings per
share
|
$2.18
|
|
$1.97
|
|
|
|
|
Adjusted(1)
|
|
|
|
Core operating
earnings
|
$287.7
|
|
$264.8
|
Adjusted net
income
|
$177.0
|
|
$167.5
|
Adjusted earnings per
share
|
$3.03
|
|
$2.81
|
In the fourth quarter, global vehicle production increased by 9%
compared to a year ago, with North
America up 5%, Europe up 7%
and China up 18%. Global vehicle
production increased 7% on a Lear sales-weighted
basis(2).
Sales in the fourth quarter increased 9% to $5.8 billion
compared to a year ago. Excluding the impact of commodities,
foreign exchange and acquisitions, sales were up 5%, reflecting the
addition of new business in both of our business segments.
Core operating earnings were $288 million, or 4.9% of
sales, compared to $265 million, or 4.9% of sales, in
2022. The increase in earnings resulted primarily from the
addition of new business. In the Seating segment, margins and
adjusted margins were 5.6% and 6.8% of sales, respectively. In
the E-Systems segment, margins and adjusted margins were 4.9% and
5.6% of sales, respectively.
Earnings per share were $2.18. Adjusted earnings per
share were $3.03, up 8% compared to a year ago, primarily
reflecting higher earnings and the benefit of our share repurchase
program.
In the fourth quarter of 2023, net cash provided by operating
activities was $570 million, and
free cash flow(1) was $377
million.
Full Year Financial
Results (in millions, except per share amounts)
|
|
|
2023
|
|
2022
|
Reported
|
|
|
|
Sales
|
$23,466.9
|
|
$20,891.5
|
Net income
|
$572.5
|
|
$327.7
|
Earnings per
share
|
$9.68
|
|
$5.47
|
|
|
|
|
Adjusted(1)
|
|
|
|
Core operating
earnings
|
$1,120.0
|
|
$870.5
|
Adjusted net
income
|
$710.3
|
|
$522.5
|
Adjusted earnings per
share
|
$12.02
|
|
$8.72
|
For the full year 2023, global vehicle production increased by
9% compared to a year ago, with North
America up 9%, Europe up
13% and China up 9%. Global
vehicle production increased 10% on a Lear sales-weighted
basis(2).
Sales for the full year increased 12% to $23.5 billion compared to a year ago.
Excluding the impact of commodities, foreign exchange and
acquisitions, sales were up 11%, reflecting increased production on
key Lear platforms and the addition of new business in both of our
business segments.
Core operating earnings were $1,120
million, or 4.8% of sales, compared to $871 million, or 4.2% of sales, in 2022.
The increase in earnings resulted primarily from increased
production on key Lear platforms and the addition of new business,
partially offset by higher launch costs and the impact of foreign
exchange. In the Seating segment, margins and adjusted
margins were 6.1% and 6.8% of sales, respectively. In the
E-Systems segment, margins and adjusted margins were 3.9% and 4.6%
of sales, respectively.
Earnings per share were $9.68,
compared to $5.47 in 2022.
Adjusted earnings per share increased 38% to $12.02, up from $8.72 in 2022, reflecting higher operating
earnings and the benefit of our share repurchase program.
For the full year of 2023, net cash provided by operating
activities was $1,249 million, and
free cash flow(1) was $638
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
fourth 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 fourth quarter of
2023, we repurchased 1,290,639 shares of our common stock for a
total of $175 million, bringing total
share repurchases for the full year 2023 to $313 million. At the end of the year, we
had a remaining share repurchase authorization of approximately
$916 million, which expires on
December 31, 2024, and reflects
approximately 12% of our total market capitalization at current
market prices.
Since initiating the share repurchase program in 2011, we have
repurchased 55.5 million shares of our common stock for a total of
$5.2 billion at an average price of
$93.43 per share. This represents a
reduction of approximately 53% of our shares outstanding since the
time we began the program.
2024-2026 Sales Backlog
The consolidated three-year
core sales backlog is $2.8 billion
and will drive continued global revenue growth and sales
diversification. The sales backlog has been impacted by
launch delays and lower than originally expected volumes on certain
electric vehicle programs. The core sales backlog also
excludes the impact of non-core products winding down in our
E-Systems business.
2024 Financial Outlook
At the midpoint of our guidance
range, we have assumed that global industry production will be 1%
lower than in 2023. The industry volume assumptions
underlying Lear's 2024 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.
Our 2024 financial outlook is summarized below:
|
Full Year 2024 Financial
Outlook
|
|
|
|
Net Sales
|
$24,000 million -
$24,600 million
|
|
|
Core Operating
Earnings
|
$1,155 million -
$1,305 million
|
|
|
Adjusted
EBITDA
|
$1,795 million -
$1,945 million
|
|
|
Restructuring
Costs
|
≈$125 million
|
|
|
Operating Cash
Flow
|
$1,275 million -
$1,425 million
|
|
|
Capital
Spending
|
≈$675 million
|
|
|
Free Cash
Flow
|
$600 million - $750
million
|
|
|
The financial outlook is based on a full year average exchange
rate of $1.09/Euro and 7.15 RMB/$.
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.
Fourth Quarter and Full Year 2023 Conference Call and Webcast
Information
A conference call and webcast will be held to
discuss Lear's fourth quarter and full year 2023 financial results
and related matters on February 6,
2024, at 8:30 a.m. EST. 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.
4547437. 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 (income) expense, restructuring costs and other
special items" (core operating earnings or adjusted segment
earnings), "pretax income before equity income, interest, other
(income) 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 (income) 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. Set forth
below are reconcilations of these non-GAAP financial measures to
the most directly comparable financial measures calculated and
presented in accordance with GAAP.
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 core sales backlog. The Company's core sales backlog
reflects anticipated net sales from formally awarded new programs
less lost and discontinued programs and excludes the impact of
non-core products winding down in our E-Systems business. 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 core sales backlog does not reflect customer price reductions
on existing or newly awarded programs. The core 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.
Lear Corporation and
Subsidiaries
Condensed
Consolidated Statements of Income
(Unaudited; in
millions, except per share amounts)
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Net sales
|
|
$
5,841.2
|
|
$
5,370.9
|
|
|
|
|
|
Cost of
sales
|
|
5,436.0
|
|
4,999.3
|
Selling, general and
administrative expenses
|
|
172.6
|
|
172.4
|
Amortization of
intangible assets
|
|
15.1
|
|
15.3
|
Interest
expense
|
|
25.0
|
|
24.0
|
Other (income) expense,
net
|
|
15.9
|
|
(13.4)
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
176.6
|
|
173.3
|
Income taxes
|
|
46.7
|
|
48.1
|
Equity in net income of
affiliates
|
|
(13.1)
|
|
(12.1)
|
|
|
|
|
|
Consolidated net
income
|
|
143.0
|
|
137.3
|
Net income attributable
to noncontrolling interests
|
|
15.7
|
|
19.8
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
127.3
|
|
$
117.5
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to Lear
|
|
$
2.18
|
|
$
1.97
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
58.5
|
|
59.6
|
Lear Corporation and
Subsidiaries
Condensed
Consolidated Statements of Income
(In millions, except
per share amounts)
|
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Net sales
|
|
$
23,466.9
|
|
$
20,891.5
|
|
|
|
|
|
Cost of
sales
|
|
21,756.5
|
|
19,481.6
|
Selling, general and
administrative expenses
|
|
714.7
|
|
684.8
|
Amortization of
intangible assets
|
|
62.5
|
|
70.8
|
Interest
expense
|
|
101.1
|
|
98.6
|
Other expense,
net
|
|
54.9
|
|
46.4
|
|
|
|
|
|
Consolidated income
before income taxes and equity in net income of
affiliates
|
|
777.2
|
|
509.3
|
Income taxes
|
|
180.8
|
|
133.7
|
Equity in net income of
affiliates
|
|
(49.3)
|
|
(33.1)
|
|
|
|
|
|
Consolidated net
income
|
|
645.7
|
|
408.7
|
Net income attributable
to noncontrolling interests
|
|
73.2
|
|
81.0
|
|
|
|
|
|
Net income attributable
to Lear
|
|
$
572.5
|
|
$
327.7
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to Lear
|
|
$
9.68
|
|
$
5.47
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
59.1
|
|
59.9
|
Lear Corporation and
Subsidiaries
Condensed
Consolidated Balance Sheets
(In
millions)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
|
Current:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,196.3
|
|
$
1,114.9
|
Accounts
receivable
|
|
3,681.2
|
|
3,451.9
|
Inventories
|
|
1,758.0
|
|
1,573.6
|
Other
|
|
1,001.4
|
|
853.7
|
|
|
7,636.9
|
|
6,994.1
|
Long-Term:
|
|
|
|
|
PP&E,
net
|
|
2,977.4
|
|
2,854.0
|
Goodwill
|
|
1,737.9
|
|
1,660.6
|
Other
|
|
2,343.3
|
|
2,254.3
|
|
|
7,058.6
|
|
6,768.9
|
|
|
|
|
|
Total
Assets
|
|
$
14,695.5
|
|
$
13,763.0
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current:
|
|
|
|
|
Short-term
borrowings
|
|
$
27.5
|
|
$
9.9
|
Accounts payable and
drafts
|
|
3,434.2
|
|
3,206.1
|
Accrued
liabilities
|
|
2,205.2
|
|
1,961.5
|
Current portion of
long-term debt
|
|
0.3
|
|
10.8
|
|
|
5,667.2
|
|
5,188.3
|
Long-Term:
|
|
|
|
|
Long-term
debt
|
|
2,742.6
|
|
2,591.2
|
Other
|
|
1,225.1
|
|
1,153.2
|
|
|
3,967.7
|
|
3,744.4
|
|
|
|
|
|
Equity
|
|
5,060.6
|
|
4,830.3
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
14,695.5
|
|
$
13,763.0
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Net
Sales
|
|
|
|
|
North
America
|
|
$
2,272.2
|
|
$
2,235.2
|
Europe and
Africa
|
|
2,173.7
|
|
1,821.3
|
Asia
|
|
1,173.9
|
|
1,094.2
|
South
America
|
|
221.4
|
|
220.2
|
Total
|
|
$
5,841.2
|
|
$
5,370.9
|
|
|
|
|
|
Content per
Vehicle 1
|
|
|
|
|
North
America
|
|
$
609
|
|
$
629
|
Europe and
Africa
|
|
$
462
|
|
$
414
|
|
|
|
|
|
Free Cash
Flow 2
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
569.7
|
|
$
537.2
|
Capital
expenditures
|
|
(193.2)
|
|
(195.3)
|
Free cash
flow
|
|
$
376.5
|
|
$
341.9
|
|
|
|
|
|
Core Operating
Earnings 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
127.3
|
|
$
117.5
|
Interest
expense
|
|
25.0
|
|
24.0
|
Other (income)
expense, net
|
|
15.9
|
|
(13.4)
|
Income
taxes
|
|
46.7
|
|
48.1
|
Equity in net income
of affiliates
|
|
(13.1)
|
|
(12.1)
|
Net income
attributable to noncontrolling interests
|
|
15.7
|
|
19.8
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
55.5
|
|
65.4
|
Acquisition
costs
|
|
(0.1)
|
|
0.4
|
Impairments related to
Russian operations
|
|
0.9
|
|
—
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
—
|
|
(3.9)
|
Favorable tax ruling
in a foreign jurisdiction
|
|
(0.2)
|
|
—
|
Other
|
|
14.1
|
|
19.0
|
Core operating
earnings
|
|
$
287.7
|
|
$
264.8
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(continued)
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Adjusted Net Income
Attributable to Lear 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
127.3
|
|
$
117.5
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
37.3
|
|
65.4
|
Acquisition
costs
|
|
(0.1)
|
|
0.4
|
Gain on
acquisition-related foreign exchange contract
|
|
—
|
|
(12.3)
|
Impairments related to
Russian operations
|
|
0.9
|
|
—
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
—
|
|
(5.3)
|
Foreign exchange
(gains) losses due to foreign exchange rate volatility related to
Russia
|
|
0.8
|
|
(4.9)
|
Favorable tax ruling
in a foreign jurisdiction
|
|
(0.7)
|
|
—
|
Loss related to
affiliate
|
|
2.0
|
|
—
|
Other
|
|
19.7
|
|
11.9
|
Tax impact of special
items and other net tax adjustments 3
|
|
(10.2)
|
|
(5.2)
|
Adjusted net income
attributable to Lear
|
|
$
177.0
|
|
$
167.5
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
58.5
|
|
59.6
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
2.18
|
|
$
1.97
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
3.03
|
|
$
2.81
|
|
|
|
|
|
Adjusted
Depreciation and Amortization 2
|
|
|
|
|
Depreciation and
amortization
|
|
$
154.1
|
|
$
142.2
|
Less - Intangible asset
impairment
|
|
—
|
|
—
|
Adjusted depreciation
and amortization
|
|
$
154.1
|
|
$
142.2
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(continued)
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Net
Sales
|
|
|
|
|
North
America
|
|
$
9,503.4
|
|
$
8,910.7
|
Europe and
Africa
|
|
8,612.6
|
|
6,946.0
|
Asia
|
|
4,445.0
|
|
4,183.2
|
South
America
|
|
905.9
|
|
851.6
|
Total
|
|
$
23,466.9
|
|
$
20,891.5
|
|
|
|
|
|
Content per
Vehicle 1
|
|
|
|
|
North
America
|
|
$
607
|
|
$
623
|
Europe and
Africa
|
|
$
472
|
|
$
428
|
|
|
|
|
|
Free Cash
Flow 2
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
1,249.3
|
|
$
1,021.4
|
Settlement of accounts
payable in conjunction with acquisition of IGB
|
|
15.4
|
|
—
|
Capital
expenditures
|
|
(626.5)
|
|
(638.2)
|
Free cash
flow
|
|
$
638.2
|
|
$
383.2
|
|
|
|
|
|
Core Operating
Earnings 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
572.5
|
|
$
327.7
|
Interest
expense
|
|
101.1
|
|
98.6
|
Other expense,
net
|
|
54.9
|
|
46.4
|
Income
taxes
|
|
180.8
|
|
133.7
|
Equity in net income
of affiliates
|
|
(49.3)
|
|
(33.1)
|
Net income
attributable to noncontrolling interests
|
|
73.2
|
|
81.0
|
Restructuring costs and
other special items -
|
|
|
|
|
Costs related to
restructuring actions
|
|
152.4
|
|
158.9
|
Acquisition
costs
|
|
0.8
|
|
10.0
|
Acquisition-related
inventory fair value adjustment
|
|
1.8
|
|
1.1
|
Impairments related to
Russian operations
|
|
2.4
|
|
19.4
|
Intangible asset
impairment
|
|
1.9
|
|
8.9
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(3.3)
|
|
—
|
Favorable tax ruling
in a foreign jurisdiction
|
|
(0.2)
|
|
—
|
Other
|
|
31.0
|
|
17.9
|
Core operating
earnings
|
|
$
1,120.0
|
|
$
870.5
|
Lear Corporation and
Subsidiaries
Consolidated
Supplemental Data
(continued)
(Unaudited; in
millions, except content per vehicle and per share
amounts)
|
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Adjusted Net Income
Attributable to Lear 2
|
|
|
|
|
Net income attributable
to Lear
|
|
$
572.5
|
|
$
327.7
|
Restructuring costs and
other special items -
|
|
|
|
|
Cost related to
restructuring actions
|
|
134.2
|
|
158.9
|
Acquisition
costs
|
|
0.8
|
|
10.0
|
Acquisition-related
inventory fair value adjustment
|
|
1.8
|
|
1.1
|
Gain on
acquisition-related foreign exchange contract
|
|
—
|
|
(1.7)
|
Impairments related to
Russian operations
|
|
2.4
|
|
19.4
|
Intangible asset
impairment
|
|
1.9
|
|
8.9
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(7.3)
|
|
(1.4)
|
Foreign exchange
(gains) losses due to foreign exchange rate volatility related to
Russia
|
|
(1.9)
|
|
9.6
|
Favorable tax ruling
in a foreign jurisdiction
|
|
(0.7)
|
|
—
|
Loss related to
affiliates
|
|
7.0
|
|
—
|
Other
|
|
34.3
|
|
23.6
|
Tax impact of special
items and other net tax adjustments 3
|
|
(34.7)
|
|
(33.6)
|
Adjusted net income
attributable to Lear
|
|
$
710.3
|
|
$
522.5
|
|
|
|
|
|
Weighted average number
of diluted shares outstanding
|
|
59.1
|
|
59.9
|
|
|
|
|
|
Diluted net income per
share available to Lear common stockholders
|
|
$
9.68
|
|
$
5.47
|
|
|
|
|
|
Adjusted earnings per
share
|
|
$
12.02
|
|
$
8.72
|
|
|
|
|
|
Adjusted
Depreciation and Amortization 2
|
|
|
|
|
Depreciation and
amortization
|
|
$
604.4
|
|
$
576.5
|
Less - Intangible asset
impairment
|
|
1.9
|
|
8.9
|
Adjusted depreciation
and amortization
|
|
$
602.5
|
|
$
567.6
|
|
|
|
|
|
Diluted Shares
Outstanding at End of
Quarter 4
|
|
57,611,687
|
|
59,543,311
|
|
|
|
|
|
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
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$ 4,342.8
|
|
$ 4,036.8
|
|
|
|
|
|
Segment
earnings
|
|
$
243.5
|
|
$
256.4
|
Costs related to
restructuring actions
|
|
45.6
|
|
18.2
|
Impairments related to
Russian operations
|
|
0.9
|
|
—
|
Other
|
|
3.8
|
|
0.5
|
Adjusted segment
earnings
|
|
$
293.8
|
|
$
275.1
|
|
|
|
|
|
Segment
margins
|
|
5.6 %
|
|
6.4 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.8 %
|
|
6.8 %
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$ 1,498.4
|
|
$ 1,334.1
|
|
|
|
|
|
Segment
earnings
|
|
$
73.3
|
|
$
9.7
|
Costs related to
restructuring actions
|
|
7.8
|
|
46.2
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
—
|
|
(4.1)
|
Other
|
|
2.9
|
|
12.1
|
Adjusted segment
earnings
|
|
$
84.0
|
|
$
63.9
|
|
|
|
|
|
Segment
margins
|
|
4.9 %
|
|
0.7 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
5.6 %
|
|
4.8 %
|
Lear Corporation and
Subsidiaries
Segment Supplemental
Data
(continued)
(Unaudited; in
millions, except margins)
|
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
Adjusted Segment
Earnings
|
|
|
|
|
|
|
|
|
|
Seating
|
|
|
|
|
Net sales
|
|
$
17,548.8
|
|
$
15,711.2
|
|
|
|
|
|
Segment
earnings
|
|
$ 1,066.9
|
|
$
893.0
|
Costs related to
restructuring actions
|
|
111.4
|
|
65.7
|
Acquisition
costs
|
|
—
|
|
0.1
|
Acquisition-related
inventory fair value adjustment
|
|
1.8
|
|
1.1
|
Impairments related to
Russian operations
|
|
2.4
|
|
19.4
|
Costs related to
typhoon in the Philippines
|
|
—
|
|
0.1
|
Other
|
|
8.7
|
|
1.6
|
Adjusted segment
earnings
|
|
$ 1,191.2
|
|
$
981.0
|
|
|
|
|
|
Segment
margins
|
|
6.1 %
|
|
5.7 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
6.8 %
|
|
6.2 %
|
|
|
|
|
|
E-Systems
|
|
|
|
|
Net sales
|
|
$ 5,918.1
|
|
$ 5,180.3
|
|
|
|
|
|
Segment
earnings
|
|
$
228.9
|
|
$
74.4
|
Costs related to
restructuring actions
|
|
37.7
|
|
87.1
|
Intangible asset
impairment
|
|
1.9
|
|
8.9
|
Insurance recoveries
related to typhoon in the Philippines, net of costs
|
|
(3.6)
|
|
(0.8)
|
Other
|
|
10.2
|
|
13.9
|
Adjusted segment
earnings
|
|
$
275.1
|
|
$
183.5
|
|
|
|
|
|
Segment
margins
|
|
3.9 %
|
|
1.4 %
|
|
|
|
|
|
Adjusted segment
margins
|
|
4.6 %
|
|
3.5 %
|
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SOURCE Lear Corporation