US: Lear responds to investor concerns around valuation
By Simon Warburton | 12 February 2013
Lear Corporation has responded to a letter from shareholders Marcato Capital Management and Oskie Capital Management outlining "concerns around the company's valuation."
The investors say the letter details their views on the company's valuation and describes the Group's ideas for "potential value-creating initiatives" and reiterates their interest in meeting with members of the board.
A statement from Lear noted: "We have a balanced strategy of investing in our business while maintaining a strong and flexible balance sheet and returning cash to shareholders. Consistent with this strategy, Lear is accelerating the execution of its US$1bn share repurchase programme - under which the company intends to repurchase nearly 20% of its outstanding shares - with US$600m of repurchases planned for 2013.
"The board of directors of Lear also accelerated the return of capital to shareholders through the recently announced 21% increase of the Company's quarterly cash dividend. This is in addition to more than US$500m of share repurchases completed over the last two years."
For its part the letter from Marcato and Oskie says: "We share the view expressed in the Company's press release of 7 February, 2013 that the Company is undervalued, and we see what we believe to be a serious discrepancy between Lear's improved operating performance and business prospects and its current market valuation."
Sectors: Components, Financial, Service suppliers/supply chain
Companies: Lear
View next/previous articles
12 Feb 2013 -
12 Feb 2013 -
Currently reading -
US: Lear responds to investor concerns around valuation
12 Feb 2013 -
Related company research
Lear Corporation - SWOT, Strategy and Corporate Finance Report
Lear Corporation - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and co...
Lear Corporation - SWOT Analysis
Lear Corporation - SWOT Analysis company profile is the essential source for top-level company data and information. Lear Corporation - SWOT Analysis examines the company’s key business structure and operations, history and products, and provides sum...
Lear Corporation (LEA) - Financial and Strategic SWOT Analysis Review
Lear Corporation (Lear) is a supplier of full line automotive seat systems, electrical distribution systems and electronic products. The company is engaged in manufacturing, assembling and supplying vehicle seating requirements for automobiles and li...
Related articles
Q&A with Lear Corporation: Review of vehicle seating
Back in the 1970s, a car seat was a functional component with few or no added value features. Nowadays, with drivers spending more time in their car on longer commutes, they expect a comfortable ride. Matthew Beecham caught up with three top executives of Lear Corp to hear how the seat has become an integral part of the car's overall design and appeal in the showroom. Here, Ryan Burns, Lear's Vice President of Global Seat Engineering led the discussion with contributions from Karl Henn, Director of Seating Engineering and R&D and Mandy Sarotte, Vice President of Global Trim Sales.
February 2013 management briefing: Automotive interiors (2)
This month's management briefing considers that latest developments in automotive interiors. In this second instalment, extracted from just-auto's QUBE seating intelligence service, we take a look at market trends in seating. Matthew Beecham also talks with engineers at JCI and Bridge of Weir Leather to find out what's changing with seat design and consumer tastes.
Is the world's newest car brand a Chinese export, or a global brand that just happens to build its cars in China? Mark Bursa reports on the first steps of Qoros.
There are currently no comments on this article
Be the first to comment on this article