Lear has posted record sales of US$18.6 billion in 2016, up 2% from 2015 and +5% excluding the impact of foreign exchange and commodity prices Net income for the year is value at US$975 million and adjusted net income US$1.026 billion, against US$746 million and US$844 million, respectively, in the prior year.
Record core operating earnings were US$1.535 billion, representing a 17% increase from the prior year, with a record margin of 8.3%, up from 7.2% in 2015. The company posted record earnings per share of US$13.33 and adjusted earnings per share of US$14.03, up 39% and 29%, respectively. Record net cash provided by operating activities and free cash flow were US$1.6 billion and US$1.1 billion, respectively.
In the Seating segment, sales were up 2% to US$14.4 billion. Excluding the impact of foreign exchange and commodity prices, sales increased 5%, reflecting the addition of new business according to Lear. Segment earnings were US$1,136 million or 7.9% of sales. Adjusted segment earnings were US$1,175 million or 8.2% of sales. Margins increased 110 basis points from a year ago, “reflecting the increase in sales and favourable operating performance”.
“We just completed our most successful year ever, as the investments that we have made in our business are paying off. We achieved record performance in all key financial metrics, continued to improve our cost structure and strengthened our product capabilities”, said Matt Simoncini, President and CEO, Lear. “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”, he added.
In 2016, Lear entered into a strategic partnership with Tempronics for seat heating and cooling, and repurchased 5.8 million shares, or approximately 8% of the shares outstanding at the beginning of the year. It also owns the Eagle Ottawa leather brand.