Lear Positioned for Continued Profitable Growth
SOUTHFIELD, Mich., June 27, 2018 /PRNewswire/ -- Lear Corporation (NYSE: LEA), a leading global supplier of automotive seating and electrical systems, today is hosting an Investor Day at its Global Product and Technology Center in Southfield, Michigan. The Lear team will outline plans to leverage its unique product capabilities to profitably grow sales in both business segments. The Company will also review its convergence opportunity to leverage its E-Systems electronics and software capabilities to offer industry leading seating innovations.
Ray Scott, Lear's President and CEO, commented, "Lear is in the strongest competitive position in its 100-year history, at a time when industry trends, such as electrification, connectivity and mobility, are driving tremendous growth opportunities." Scott added, "This is truly an exciting time in the automotive industry, and Lear is positioned to accelerate our growth, improve our earnings and continue to deliver superior shareholder returns."
During the meeting, the Company will outline growth opportunities that would increase total sales from $22 billion this year to over $30 billion in 2023 while increasing core operating margins. Lear's product segment presidents, Frank Orsini for Seating and Jeneanne Hanley for E-Systems, will provide detailed reviews of their unique product and process capabilities that will drive future growth. In addition, Lear will formally introduce its new Chief Technology Officer, John Absmeier, to the investment community. All of the presentations from the Investor Day are now posted on Lear's website at lear.com.
Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecasts" and similar expressions identify certain of these forward-looking statements. The Company also may provide forward-looking statements in oral statements or other written materials released to the public. All statements contained or incorporated in this press release or in any other public statements that address operating performance, events or developments that the Company expects or anticipates may occur in the future are forward-looking statements. Factors that could cause actual results to differ materially from
these forward-looking statements are discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, and its other Securities and Exchange Commission filings. Future operating results will be based on various factors, including actual industry production volumes, commodity prices and the Company's success in implementing its operating strategy.
Information in this press release relies on assumptions in the Company's sales backlog. The Company's sales backlog reflects anticipated net sales from formally awarded new programs less lost and discontinued programs. The calculation of the sales backlog does not reflect customer price reductions on existing or newly awarded programs. The sales backlog may be impacted by various assumptions embedded in the calculation, including vehicle production levels on new programs, foreign exchange rates and the timing of major program launches.
The forward-looking statements in this press release are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof.
Non-GAAP Financial InformationThe Company has provided information in this press release about "pretax income before equity income, interest, other expense, restructuring costs and other special items" (core operating earnings and related margin), a non-GAAP financial measure. Other expense includes, among other things, non-income related taxes, foreign exchange gains and losses, gains and losses related to certain derivative instruments and hedging activities, gains and losses on the disposal of fixed assets and the non-service cost components of net periodic benefit cost.
Management believes the non-GAAP financial measure used in this press release is useful to both management and investors in their analysis of the Company's financial position and results of operations. In particular, management believes that core operating earnings is a useful measure in assessing the Company's financial performance by excluding certain items that are not indicative of the Company's core operating performance or that may obscure trends useful in evaluating the Company's continuing operating activities. Management also believes that this measure is useful to both management and investors in their analysis of the Company's results of operations and provide improved comparability between fiscal periods. Further, management uses this non-GAAP financial measure for planning and forecasting future periods.
Core operating earnings should not be considered in isolation or as a substitute for net income attributable to Lear or other income statement data prepared in accordance with GAAP or as a measure of profitability or liquidity.
A reconciliation of forward-looking financial measures provided on a non-GAAP basis to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP") is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
About LearLear Corporation was founded in Detroit in 1917 as American Metal Products. Today, Lear is one of the world's leading suppliers of automotive seating and electrical systems (E-Systems). Lear serves every major automaker in the world, and Lear content can be found on more than 400 vehicle nameplates. Lear's world-class products are designed, engineered and manufactured by a diverse team of approximately 165,000 employees located in 39 countries. Lear currently ranks #148 on the Fortune 500. Lear's headquarters are in Southfield, Michigan. Further information about Lear is available at lear.com or follow us on Twitter @LearCorporation.
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Posted on 6/27/2018