Lear adjusted income drops 11% in Q4

DETROIT -- Automotive seating and electrical component supplier Lear Corp., profitable all four years since emerging from bankruptcy in November 2009, posted an 11 percent drop in adjusted fourth-quarter profits.

Adjusted net income for the quarter fell to $128.8 million from $144.6 million a year earlier, the company said in a statement today. The year-earlier figure does not include a $767 million onetime tax gain in the United States.

Revenue at the company, which supplies parts to General Motors and Ford Motor Co. among others, rose 14 percent to $4.26 billion in the quarter from $3.72 billion a year earlier.

Analysts on average were expecting revenue of $4.05 billion, according to Thomson Reuters I/B/E/S.

The company's adjusted earnings of $1.55 per share missed analysts' expectations by 4 cents. But because of a large share buy-back program that reduced Lear's number of shares outstanding, the company improved its quarterly earnings per share from $1.48 during the same quarter last year.

For the year, Lear posted adjusted net income of $510 million, down from $548 million in 2012. But on a per-share basis, net income grew to $5.90 from $5.49. Lear said it generated $16.2 billion in revenue for the year, up from $14.6 billion in 2012.

The company said sales grew in all of its regions around the world. Lear benefited from North American auto production rising 5 percent to 16.8 million units in 2013. It also benefited from an 8 percent bump in Chinese production along with 2 percent gains in Europe and Africa.

Global vehicle production increased 6 percent in the fourth quarter, with a 5 percent rise in North America

The company maintained the full-year sales forecast it gave two weeks back, expecting sales of $16.9 billion to $17.4 billion. Analysts on average are expecting revenue of $17.08 billion.

Lear ranks No. 11 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $14.6 billion in 2012.

You can reach Sean Gagnier at sgagnier@crain.com

25

Shares

ATTENTION COMMENTERS: Over the last few months, Automotive News has monitored a significant increase in the number of personal attacks and abusive comments on our site. We encourage our readers to voice their opinions and argue their points. We expect disagreement. We do not expect our readers to turn on each other. We will be aggressively deleting all comments that personally attack another poster, or an article author, even if the comment is otherwise a well-argued observation. If we see repeated behavior, we will ban the commenter. Please help us maintain a civil level of discourse.

Newsletters