Lear Corp has reported financial results for the fourth quarter and full year of 2016.

For the fourth quarter, the company reported sales of $4.6 billion, down 2 percent from a year ago; up slightly excluding the impact of foreign exchange and commodity prices. Net income was $230 million and adjusted net income was $270 million, compared to $235 million and $245 million, respectively, in the prior year.

Lear reported fourth quarter earnings per share of $3.24 and adjusted earnings per share of $3.80, up 6 percent and 19 percent, respectively, from the prior year. In the fourth quarter, the company acquired AccuMED, a specialty fabric manufacturer.

For the full year 2016, Lear reported record sales of $18.6 billion, up 2 percent from a year ago; up 5 percent excluding the impact of foreign exchange and commodity prices. Net income was $975 million and adjusted net income was $1.026 billion, compared to $746 million and $844 million, respectively, in the prior year.

The company reported record earnings per share of $13.33 and adjusted earnings per share of $14.03, up 39 percent and 29 percent, respectively, from the prior year. Lear also entered into a strategic partnership with Tempronics for seat heating and cooling, and repurchased 5.8 million shares, or approximately 8 perce of the shares outstanding, at the beginning of the year.

“We just completed our most successful year ever, as the investments that we have made in our business are paying off,” said Matt Simoncini, Lear’s president and CEO. “We achieved record performance in all key financial metrics, continued to improve our cost structure and strengthened our product capabilities. We also continued to reward our shareholders in 2016 with a 20 percent increase in our dividend, the purchase of nearly 6 million of our shares outstanding and a free cash flow yield of 11 percent. Over the past five years, we have delivered a total return to our shareholders of 250%, twice the market average and more than any of our peers. Going forward, I believe that we are in the strongest overall competitive position in our history. We have a record sales backlog, and we are uniquely positioned to continue to deliver profitable growth and superior total shareholder returns.”

Full Year 2017 Financial Outlook

Lear’s 2017 financial outlook is based on industry vehicle production assumptions of 17.6 million units in North America, down 2 percent from the prior year, 22.6 million units in Europe and Africa, up 1 percent from the prior year, and 26.3 million units in China, up 3 percent from the prior year.  Lear’s financial outlook is based on an average full year exchange rate of $1.05/Euro.

Sales in 2017 are expected to be approximately $19.5 billion, and core operating earnings are expected to be about $1.6 billion. Net cash provided by operating activities is estimated to be $1.6 billion, and capital spending is expected to be $550 million, resulting in free cash flow in excess of $1 billion.