Lear Records $6 Million Adjustment, Reducing 2005 Financial Results
SOUTHFIELD, Mich., March 8 /PRNewswire-FirstCall/
-- Subsequent to the company's original earnings announcement on
January 25, 2006, Lear was advised by a major customer of retroactive
pricing adjustments associated with a particular vehicle program for
shipments made prior to 2006. Certain payments due to Lear in 2006 were
withheld as a result of these pricing adjustments. The vehicle program
involved in this matter is no longer in production.
Lear disagrees with the proposed pricing adjustments and intends to
dispute and seek recovery of the amounts improperly withheld.
Commercial discussions with the customer are ongoing and management has
adjusted previously announced financial results to establish a reserve
for this matter.
The adjustment decreased both fourth quarter and full year 2005 net
sales by $6.0 million and increased both fourth quarter and full year
net loss by $6.0 million. The impact on basic and diluted net loss per
share was $0.09 for both the fourth quarter and full year.
Further information concerning the revisions to Lear's 2005 financial
results is contained in the Amended Current Report on Form 8-K/A to be
filed by Lear today.
Lear Corporation is one of the world's largest suppliers of
automotive interior systems and components. Lear provides complete seat
systems, electronic products and electrical distribution systems and
other interior products. With annual net sales of $17.1 billion, Lear
ranks #127 among the Fortune 500. The company's world-class products
are designed, engineered and manufactured by a diverse team of 115,000
employees at 282 locations in 34 countries. Lear's headquarters are in
Southfield, Michigan, and Lear is traded on the New York Stock Exchange
under the symbol [LEA]. Further information about Lear is available on
the Internet at http://www.lear.com/ .
SOURCE: Lear Corporation
CONTACT: Mel Stephens, Vice President - Investor Relations &
Communications of Lear Corporation, +1-248-447-1624
Web site: http://www.lear.com/
Company News On-Call: http://www.prnewswire.com/comp/518304.html
Posted on 3/8/2006