Lear Corp., a global supplier of automotive seating and electrical systems, announced that its board of directors has authorized an increase in the company’s share repurchase authorization to $1.5 billion and extended the authorization period until Dec. 31, 2020. In addition, the board raised the quarterly cash dividend on the company’s common stock by 40 percent, from 50 cents per share to 70 cents per share. The next dividend is payable on March 26, to shareholders of record at the close of business on March 7.
“The company’s record financial performance, balance sheet strength and very favorable outlook are allowing us to significantly increase our dividend and continue our proven track record of returning capital to our shareholders,” said Matt Simoncini, Lear president and CEO. “For some time now, we have made significant investments in our business, which have given Lear unique product capabilities and an industry-leading cost structure. Today, we are in the strongest competitive position in our 100-year history. Over the past five years, we have returned record levels of cash to our shareholders in the form of dividends and share repurchases. Lear’s total return to shareholders during this period was 300 percent, better than any of our peers and three times the return for the S&P 500.”
“Lear’s board of directors fully supports the company’s balanced strategy of investing in the business and consistently returning cash to shareholders, while maintaining a strong and flexible balance sheet. The shareholder actions announced today are consistent with this strategy and demonstrate the confidence Lear’s board has in the company’s outlook,” said Henry DWallace, Lear’s non-executive chairman.
At the end of 2017, Lear had $546 million remaining on its share repurchase authorization. Including today’s action, Lear’s total available share repurchase authorization is now $1.5 billion. Since the company began its share repurchase and dividend programs in 2011, Lear has returned approximately $4 billion to shareholders, including the repurchase of 42 percent of the company’s shares outstanding at the commencement of our share repurchase program.
