Seating and electronics supplier Lear Corp., after completing its acquisition of Eagle Ottawa, the largest auto seats leather supplier in the world, said that both first-quarter net income and revenue increased from a year earlier.
The company’s net income grew 20 percent to $147 million. And, Lear said its first-quarter core operating income surged 21 percent to $294 million, marking its strongest core operating income in one quarter.
Adjusted earnings per share were $2.28, 4 percent higher than analysts’ forecasts and 24 percent higher than a year earlier.
Revenue for the quarter improved 3.7 percent from a year earlier to $4.54,521.4 billion.
“I believe we are in the strongest competitive position in our history and are well-positioned to take advantage of major industry trends, such as global platforms, increasing electrical content, improved fuel efficiency and growing consumer demand for comfort, convenience and safety features,” Lear CEO Matt Simoncini said in a statement today.
Lear completed its acquisition of Eagle Ottawa for $843 million in January.
Nearly half of vehicles on U.S. roads use Eagle Ottawa leather, Crain’s Detroit Business, an Automotive News affiliate, reported in January.
The Auburn Hills, Mich., leather supplier generated nearly $1 billion in revenue in 2014, up from $485 million in 2011.
“The acquisition of Eagle Ottawa strengthens our industry leading capabilities in Seating, and provides additional sales growth and diversification opportunities. Eagle Ottawa’s unique capabilities are a perfect complement to our world-class Seating business,” the company statement said.
Seating division revenue climbed 8 percent to $3.5 billion during the quarter, while electrical revenue declined 8.6 percent to $1 billion.
Share repurchase
Lear also repurchased over 1 million shares of its common stock for $112 million during the quarter. The company has a remaining share repurchase authorization of $888 million, which will expire in December 2017.
Lear has repurchased 31.9 million shares of its common stock for $2 billion and has reduced its shares by about 30 percent since starting the share repurchase program in 2011.
The company expects sales between $18 billion and $18.5 billion for 2015. Pretax income before restructuring costs and other charges will be between $1.08 billion and $1.13 billion for the year, Lear forecasted.
Lear ranks No. 10 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers reaching $16.2 billion in 2013.
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