Lear has reported fourth quarter sales of US$4.3bn, up 14% from a year ago and full year sales of US$16.2bn, up 11% from a year ago. It also forecasts increased sales and earnings in 2014.
Lear said that it achieved core operating earnings of US$839m in 2013, up 10% on the previous year.
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“2013 marked our fourth consecutive year of higher sales and adjusted earnings per share,” said Matt Simoncini, Lear’s president and chief executive officer. “Our strong financial results reflect the investments that we have made to improve our cost structure and grow our business. During the year, we returned over $1 billion in cash to our shareholders through share repurchases and dividends. We are continuing to invest in the business to further develop our low-cost footprint and improve our cost structure. We also are seeking accretive acquisitions to strengthen and grow our core businesses. At the same time, we plan to maintain a strong financial position and return cash to shareholders.”
Lear said that in the fourth quarter, global vehicle production increased 6% from a year ago, reflecting production increases in each of the three largest automotive markets in the world. Production was up 20% in China, 5% in North America and 4% in Europe & Africa. Production was down 7% in South America. For the full year, global vehicle production improved by 4% from a year ago to a record 82.6 million vehicles. Production in China, North America and Europe & Africa increased by 14%, 5% and 1%, respectively in 2013.
In the seating segment, Q4 sales were up 14% to US$3.1bn, reflecting the addition of new business and higher production on key platforms, Lear said. In 2013, seating segment net sales were up 9% to US12bn, reflecting primarily the addition of new business, higher production on key platforms and the acquisition of Guilford.
Lear said it expects 2014 sales to rise to US$16.9 to US$17.4bn and core operating earnings in the range of US$910 to US$960m, a significant rise on 2013. It said projected increased earnings reflect higher sales and improving company margins.
