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EX-3.3 - EX-3.3 - LEAR CORP | k48534exv3w3.htm |
EX-3.1 - EX-3.1 - LEAR CORP | k48534exv3w1.htm |
EX-4.2 - EX-4.2 - LEAR CORP | k48534exv4w2.htm |
EX-3.2 - EX-3.2 - LEAR CORP | k48534exv3w2.htm |
EX-4.1 - EX-4.1 - LEAR CORP | k48534exv4w1.htm |
EX-10.3 - EX-10.3 - LEAR CORP | k48534exv10w3.htm |
EX-10.2 - EX-10.2 - LEAR CORP | k48534exv10w2.htm |
EX-10.1 - EX-10.1 - LEAR CORP | k48534exv10w1.htm |
8-K - FORM 8-K - LEAR CORP | k48534e8vk.htm |
Exhibit 99.1
Lear Contact: | ||
Mel Stephens | ||
(248) 447-1624 |
LEAR COMPLETES FINANCIAL REORGANIZATION AND NEW
COMMON SHARES WILL BEGIN TRADING ON THE NYSE
COMMON SHARES WILL BEGIN TRADING ON THE NYSE
Company Emerges from Chapter 11 with a Strong and
Flexible Capital Structure, Including over $1 Billion in Cash
Flexible Capital Structure, Including over $1 Billion in Cash
Positive Operating Earnings and Free Cash Flow in Third Quarter
Diversified Sales Backlog of New Business Totals $1.4 Billion
Well Positioned to Benefit from Industry Recovery with Competitive Cost
Structure, Focus on Quality, and Commitment to Customer Satisfaction
Structure, Focus on Quality, and Commitment to Customer Satisfaction
SOUTHFIELD, Mich., November 9, 2009 Lear Corporation, a leading global supplier of
automotive seating systems, electrical distribution systems and electronic products, announced
today that it has successfully emerged from its court-supervised financial reorganization with a
strong and flexible balance sheet, positive operating results in the Third Quarter, a growing sales
backlog and a robust competitive profile.
The Company also announced that its new common stock will be listed on the New York Stock
Exchange under its historical NYSE stock symbol LEA and will begin trading on a when issued
basis (LEA WI) today. The Company expects its common shares to begin regular way trading within
several days thereafter.
We have moved through the financial restructuring process without missing a beat
operationally. We have continued to win new business globally, strengthened our industry-leading
global capabilities and the spirit of the Lear team has never been more positive, said Bob
Rossiter, Lears Chairman, Chief Executive Officer and President. Our customer relationships
remain the best in the industry, allowing us to continue winning new business in every region of
the world.
Lear said its present net sales backlog totals $1.4 billion for 2010 to 2012, which is
approximately 25% higher than the prior status, despite lower industry production levels. The new
backlog also represents continued diversification of Lears sales, with 40% in its Seating business
and 60% in its growing Electrical and Electronic business. Moreover, more than half of Lears new
business comes from outside North America.
As a result of the financial reorganization, Lear has reduced its debt obligations by
approximately $2.8 billion and emerged with a strong and flexible balance sheet. With over $1
billion in cash, Lear has available liquidity to support its global operating needs and growth
plans. Upon exit, Lear has less than $1 billion of debt at competitive interest rates and no
near-term maturities.
Moving forward, we are committed to maintaining a disciplined financial profile and an
investment grade focus that will enable us to continue investing in new products and technologies
globally, as well as growth in emerging markets, Mr. Rossiter said.
As a result of our multi-year business transformation, we have streamlined our global cost
footprint and improved our operating efficiency in every region of the world. Going forward, we
have a focused overall plan to drive further sales growth and improved margins.
Mr. Rossiter concluded, Thanks to the hard work and dedication of our employees, we moved
through our financial restructuring expeditiously and without compromising the fundamentals that
make Lear a global industry leader our unrelenting focus on quality, our unwavering commitment to
customer satisfaction, and the most talented team in the business. When you add to that our strong
balance sheet, competitive cost structure, and focused growth strategy, we are ideally positioned
to continue our business momentum and to benefit from an industry recovery.
Investor Conference Call
Lear will webcast a conference call to review the Companys third-quarter 2009 financial
results and related matters on Wednesday, November 11, 2009, at 1:00 p.m. eastern time through the
Investor Relations link at http://www.lear.com. In addition, the conference call can be accessed
by dialing 1-800-789-4751 (domestic) or 1-973-200-3975 (international). Audio replays will be
available two hours following the call at 1-800-642-1687 (domestic) or 1-706-645-9291
(international) and will be available until November 25, 2009, with a Conference I.D. of 38924117.
Forward-Looking Statements
This 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. Actual results may differ materially from anticipated results as a result
of certain risks and uncertainties, including but not limited to: the potential adverse impacts of
the filing of the chapter 11 bankruptcy proceedings on the Companys business, financial condition
or results of operations that could continue or arise following the effective date of the plan of
reorganization; the anticipated future performance of the reorganized Company, including, without
limitation, the Companys ability to maintain or increase revenue or gross margins, control future
operating expenses or make necessary capital expenditures; general economic conditions in the
markets in which the Company operates, including changes in interest rates or currency exchange
rates, the financial condition and restructuring actions of the Companys customers and suppliers;
changes in actual industry vehicle production levels from the Companys current estimates;
fluctuations in the production of vehicles for which the Company is a supplier; the loss of
business with respect to, or the lack of commercial success of, a vehicle model for which the
Company is a significant supplier, including further declines in sales of full-size pickup trucks
and large sport utility vehicles; disruptions in the relationships with the Companys suppliers;
labor disputes involving the Company or its significant customers or suppliers or that otherwise
affect the Company; the Companys ability to achieve cost reductions that offset or exceed
customer-mandated selling price reductions; the outcome of customer negotiations; the impact and
timing of program launch costs; the costs, timing and success of
restructuring actions; increases in the Companys warranty or product liability costs; risks
associated with conducting business in foreign countries; competitive conditions impacting the
Companys key customers and suppliers; the cost and availability of raw materials and energy; the
Companys ability to mitigate increases in raw material, energy and commodity costs; the outcome of
legal or regulatory proceedings to which the Company is or may become a party; unanticipated
changes in cash flow, including the Companys ability to align its vendor payment terms with those
of its customers; further impairment charges initiated by adverse industry or market developments;
the impact and duration of domestic and foreign government initiatives designed to assist the
automotive industry; and other risks described from time to time in the Companys Securities and
Exchange Commission filings. Future operating results will be based on various factors, including
actual industry production volumes, commodity prices and the Companys success in implementing its
operating strategy.
This press release also contains information on the Companys sales backlog. The Companys
incremental sales backlog reflects anticipated net sales from formally awarded new programs and
open replacement programs, less phased-out and cancelled programs. The calculation of backlog does
not reflect customer price reductions on existing or newly awarded programs. The backlog may be
impacted by various assumptions embedded in the calculation, including vehicle production levels on
new and replacement programs, foreign exchange rates and the timing of major program launches.
Lears 2010 to 2012 consolidated sales backlog is based on an exchange rate of $1.40/per Euro and
current forecasted industry production assumptions by major market provided by CSM Worldwide.
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.
Lear Corporation is one of the worlds leading suppliers of automotive seating systems,
electrical distribution systems and electronic products. The Companys world-class products are
designed, engineered and manufactured by a diverse team of approximately 75,000 employees at 205
facilities in 36 countries. Lears headquarters are in Southfield, Michigan, and Lears new common
shares will be 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.
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