Lear Corporation Reports Record Second Quarter -

Highest Sales and Earnings Ever Reported SOUTHFIELD, Mich. (PROTEXT) - Lear Corporation (NYSE: LEA)today reported record sales, operating income and net income forthe second quarter of 1999. Highlights for the 1999 second quarter included: * Sales up nearly 50 percent to $3.2 billion -- Highestquarterly

sales ever * Earnings up nearly 15 percent to $1.10 per share -- Highest

quarterly earnings ever * Completed UT Automotive transaction -- New platform forgrowth * Financing package completed -- Bank facility and seniornotes * Motors business divested to Johnson Electric -- Raised $310

million * Integrated new electronics capabilities -- Ahead ofschedule Commenting on the Company's second quarter accomplishments,Kenneth L. Way, Lear Chairman and Chief Executive Officer,stated, "We are extremely pleased with both our record financialresults as well as the other operational objectives we achievedin the quarter. Lear's financial performance continues to benefitfrom our asset management focus, our strategic acquisitionprogram and our global leadership in automotive interiors.Additionally, we completed the acquisition and financing of UTAutomotive, moved quickly to divest the non-strategic Motorsbusiness, significantly paid down debt and integrated our newelectronics capabilities. These accomplishments continue todemonstrate Lear's ability to move quickly, create value and leadthe automotive supplier industry in developing new and betterways to serve our global customers." Net income for the quarter ended July 3, 1999 was a record$74.8 million, or $1.10 per share, compared with $65.7 million,or $.96 per share, in the second quarter of 1998. Operatingincome for the 1999 second quarter advanced 37 percent to $190.8million, versus $139.6 million for 1998's second quarter. For themost recent quarter, the Company had approximately five hundredthousand fewer shares outstanding on a weighted average basis. Net sales for the second quarter of 1999 rose to an all-timerecord of over $3.2 billion, as compared to approximately $2.2billion in the second quarter of 1998. More than 20 percent ofthe second quarter sales increase was due to internally generatednew business. Geographically, almost one-third of the second quarter'srecord sales increase was attributable to Lear's operationsoutside of the U.S. and Canada. For the first time ever, Europeansales reached the billion-dollar mark, rising 55 percent from$662 million in the year-ago period. Also for the first timeever, sales in the U.S. and Canada reached the two-billion-dollarmark, a 55 percent increase from $1.3 billion in the year agoperiod. Due primarily to continued softness in the South Americanmarket, second quarter sales in other world regions declined from$217 million to $197 million. Net income for the six months ended July 3, 1999 increased 11percent to a record $125.1 million, or $1.85 per share, comparedwith earnings of $113.0 million, or $1.65 per share, in thecomparable 1998 period. Operating income for the first six monthsof 1999 advanced 24 percent to $311.2 million, from $250.3million in last year's comparable period. For the first sixmonths of 1999, the Company had approximately seven hundredthousand fewer shares outstanding on a weighted average basis. Net sales for the six months ended July 3, 1999 rose 41percent to a record $5.9 billion from $4.2 billion. More than 30percent of the six-month sales increase was due to internallygenerated new business. Geographically, almost one-third of the sales increase for thefirst six months of 1999 was attributable to Lear's operationsoutside of the U.S. and Canada. For the first six months of 1999,European sales increased 46 percent to $1.9 billion, while salesin other world regions declined 9 percent to $365 million. U.S.and Canada sales for the first six months of 1999 increased 46percent to $3.7 billion. Way continued, "Lear's record performance continues to reflectour ability to deliver industry-leading automotive solutions,while simultaneously maintaining our position as a flexible, low-cost supplier. Our strategy of expanding our capabilities andmarket position as a leading global automotive supplier shouldcontinue to drive Lear's long-term sales and earnings growth. Weremain confident that our strong position in electronics willserve to further this objective." Lear Corporation, a Fortune 200 company headquartered inSouthfield, Michigan, is one of the world's largest automotivesuppliers, with 1998 pro forma sales of more than $12 billion.The company's world-class products are designed, engineered andmanufactured by more than 100,000 employees in over 300facilities located in 33 countries. Information about Lear andits products is available on the Internet at http://www.lear.com. This news release contains forward-looking statements withinthe meaning of the Private Securities Litigation Reform Act of1995. Actual results may differ materially from the anticipatedresults because of certain risks and uncertainties, including butnot limited to general economic conditions in the markets inwhich Lear operates, fluctuations in the production of vehiclesfor which the Company is a supplier, labor disputes involving theCompany or its significant customers, risks associated withconducting business in foreign countries and other risks detailedfrom time to time in the Company's Securities and ExchangeCommission filings. Lear Corporation and Subsidiaries

Consolidated Statements Of Income (Unaudited)

(In Millions, Except Per Share Data)

Second Quarter

19991998

Net sales

$3,233.6$2,175.0

Cost of sales

2,894.41,943.4

Selling, general & admin. expenses

129.180.5

Amortization of goodwill

19.311.5

Operating income

190.8139.6

Interest expense

60.225.5

Other expense

7.35.5

Income before provision for national

income taxes

123.3108.6

Provision for national income taxes

48.542.9

Net income

$74.8$65.7

Basic net income per share

$1.12$0.98

Diluted net income per share

$1.10$0.96

Wtd. avg. no. of diluted shares outstanding

67.968.4

Depreciation and amortization

$87.8$51.6

Capital expenditures

$91.0$76.9

Six MonthsEnded

7/3/996/27/98

Net sales

$5,920.8$4,207.1

Cost of sales

5,362.93,775.3

Selling, general & admin. expenses

213.4158.5

Amortization of goodwill

33.323.0

Operating income

311.2250.3

Interest expense

90.350.2

Other expense

15.213.5

Income before provision for national

income taxes

205.7186.6

186.6

Provision for national income taxes

80.673.6

Net income

$125.1$113.0

Basic net income per share

$1.87$1.69

Diluted net income per share

$1.85$1.65

Wtd. avg. no. of diluted shares outstanding

67.768.4

Depreciation and amortization

$150.1$106.5

Capital expenditures

$162.6$125.1

Lear Corporation and Subsidiaries

Consolidated Balance Sheet

($ In Millions)

7/3/9912/31/98

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$32.3$30.0

Accounts receivable, net

1,968.01,373.9

Inventories

481.1349.6

Other

720.5444.5

3,201.92,198.0

LONG-TERM ASSETS:

Property, plant and equipment, net

1,810.31,182.3

Goodwill, net

3,315.52,019.8

Other

375.7277.2

TOTAL ASSETS

$8,703.45,677.3

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Short-term borrowings

$64.4$82.7

Accounts payable

2,030.41,600.8

Accrued liabilities

1,418.9797.5

Current portion of long-term debt

13.516.5

3,527.22,497.5

LONG-TERM LIABILITIES:

Deferred national income taxes

95.239.0

Long-term debt

3,273.31,463.4

Other

454.1377.4

3,822.61,879.8

STOCKHOLDERS' EQUITY

1,353.61,300.0

TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$ 8,703.45,677.3 ots Original Text Service: Lear Corporation Internet:http://www.newsaktuell.de Contact: Karen Stewart, 248-447-1651,or Analysts, Jonathan Peisner, 248-447-1624, both of LearCorporation Company News On-Call:http://www.prnewswire.com/comp/518304.html or fax, 800-758-5804,ext. 518304 Web site: http://www.lear.com

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