Lear Corporation reports record sales, earnings for first quarter 2017
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Lear Corporation, a leading global supplier of automotive seating and electrical systems, reported record sales and earnings for the first quarter 2017.
The company is one of the biggest private employers in Mexico with over 45,000 workers in Mexico and facilities in 19 cities around the country.
Lear revealed sales of almost US$ 5.0 billion (US$ 4,998.5), up 7% from a year ago or a 9% increase excluding the impact of foreign exchange.
Net income for the first three months of 2017 reached US$ 305.8 million, up 23% from US$ 248.4 million in the prior year. Earnings per share of US$ 4.35 and adjusted earnings per share of US$ 4.27, up 26% from the prior year.
Lear’s net cash provided by operating activities and free cash flow totaled US$ 278.9 million and US$ 158.1 million, respectively. Increased quarterly cash dividend increased from US$ 0.30 to US$ 0.50 per share and increased share repurchase authorization to US$ 1 billion.
Full Year 2017 Financial Outlook
Lear’s 2017 financial outlook is unchanged from the prior outlook. The current outlook is based on industry vehicle production assumptions of 17.6 million units in North America, down 1% from the prior year, 22.8 million units in Europe and Africa, up 2% from the prior year, and 26.3 million units in China, up 2% from the prior year. Lear’s financial outlook is based on an average full year exchange rate of US$ 1.05/Euro.
Sales in 2017 are expected to be approximately US$ 19.5 billion, and core operating earnings are expected to be about US$ 1.6 billion. Net cash provided by operating activities is estimated to be US$ 1.6 billion, and capital spending is expected to be US$ 550 million, resulting in free cash flow in excess of US$ 1.0 billion.