Lear Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Twelve Months Ended December 31, 2017; Provides Production and Earnings Guidance for the Year 2018
January 26, 2018 at 07:00 am EST
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Lear Corporation announced unaudited consolidated earnings results for the fourth quarter and twelve months ended December 31, 2017. For the quarter, the company reported net sales of $5,363.8 million compared to $4,643.5 million a year ago. Consolidated income before income taxes and equity in net income of affiliates was $367.3 million compared to $308.1 million a year ago. Consolidated net income was $420.4 million compared to $248.5 million a year ago. Net income attributable to the company was $400.5 million or $5.80 per diluted share compared to $229.9 million or $3.24 per diluted share a year ago. Adjusted net income attributable to the company was $300.4 million or $4.38 per share compared to $270.1 million or $3.80 per share a year ago. Adjusted core operating earnings were $441.1 million compared to $385.6 million a year ago.
For the twelve months, the company reported net sales of $20,467.0 million compared to $18,557.6 million a year ago. Consolidated income before income taxes and equity in net income of affiliates was $1,526.7 million compared to $1,338.3 million a year ago. Consolidated net income was $1,380.9 million compared to $1,040.5 million a year ago. Net income attributable to the company was $1,313.4 million or $18.59 per diluted share compared to $975.1 million or $13.33 per diluted share a year ago. Adjusted net income attributable to the company was $1,177.8 or $17.00 per share million compared to $1,026.3 million or $14.03 per share a year ago. Adjusted core operating earnings were $1,719.0 million compared to $1,534.8 million a year ago.
The company provided production and earnings guidance for the year 2018. The company's 2018 financial outlook is based on a global industry production assumption of 95.1 million vehicles, up 2% from 2017. On a regional basis, vehicle production is forecasted to be 17.4 million units in North America, up 2%, 23.4 million units in Europe and Africa, up 2%, and 26.5 million units in China, up 1%.
Sales in 2018 are expected to be in the range of $21.4 to $21.6 billion, and core operating earnings are expected to be in the range of $1,750 million to $1,775 million. Net cash provided by operating activities is estimated to be $1.8 billion, and free cash flow is expected to be more than $1.2 billion. The company's effective tax rate on an adjusted basis is expected to be approximately 22%. Adjusted net income is expected to be in the range of $1,230 million to $1,250 million. Pretax operational restructuring costs are estimated to be $65 million, capital expenditures are expected to be $630 million and depreciation and amortization expense is estimated to be $480 million.
Lear Corporation is a global automotive technology company. The Company supplies complete seat systems, key seat components, complete electrical distribution and connection systems, high-voltage power distribution products, including battery disconnect units (BDUs), low-voltage power distribution products, electronic controllers and other electronic products to automotive manufacturers. The Companyâs segments include Seating and E-Systems. Its Seating segment consists of the design, development, engineering and manufacture of complete seat systems and key seat components. Its E-Systems segment consists of the design, development, engineering and manufacture of complete electrical distribution and connection systems, high-voltage power distribution products, including BDUs, and low-voltage power distribution products, electronic controllers and other electronic products. Its software offerings include embedded control, cybersecurity software and software to control hardware devices.
Lear Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Twelve Months Ended December 31, 2017; Provides Production and Earnings Guidance for the Year 2018