SOUTHFIELD, Mich. – Lear Corp. has reported financial results for the first quarter.
For the first quarter of 2015, Lear reported sales of $4.5 billion, core operating earnings of $294 million, net income of $147 million and adjusted earnings per share of $2.28. This compares with sales of $4.4 billion, core operating earnings of $243 million, net income of $122 million and adjusted earnings per share of $1.84 for the first quarter of 2014.
“We continued our positive momentum with strong first quarter results,” said Matt Simoncini, Lear’s president and CEO. “Our balanced strategy of investing in our business, maintaining a strong financial position and returning cash to investors is delivering superior value to both our customers and shareholders. In both of our business segments, we are continuing to win new business and improve our margins. The integration of Eagle Ottawa is progressing as planned. I believe we are in the strongest competitive position in our history and are well-positioned to take advantage of major industry trends, such as global platforms, increasing electrical content, improved fuel efficiency and growing consumer demand for comfort, convenience and safety features.”
In the first quarter of 2015, free cash flow was a use of $120 million, and net cash used in operating activities was $67 million.
Eagle Ottawa Acquisition
Lear completed the acquisition of Eagle Ottawa, a supplier of premium automotive leather, on Jan. 5 for $843 million. The acquisition of Eagle Ottawa strengthens Lear’s capabilities in seating, and provides additional sales growth and diversification opportunities.
Full Year 2015 Financial Outlook
Sales in 2015 are expected to be in the range of $18 billion to $18.5 billion, and core operating earnings are expected to be in the range of $1.175 to $1.225 billion. Free cash flow is expected to be approximately $575 million. Pretax income before restructuring costs and other special items is estimated to be in the range of $1.08 billion to $1.13 billion in 2015.
