Lear Corporation Reports Record Third Quarter, Nine Month Results

SOUTHFIELD, Mich. (ots-PRNewswire) - Lear Corporation (NYSE:LEA) today reported record third quarter and nine month sales,operating income and net income for fiscal 1999. Highlights for the 1999 third quarter included: * Sales up 57% to $3.0 billion * Earnings per share up 81% to $0.58 * Awarded Peugeot seating contract * Awarded electronic distribution contracts for 2 NorthAmerican

programs * IndustryWeek Magazine selects Lear as one of "The World's100

Best Managed Companies" "We are pleased with our third quarter results which reflectthe benefits of the UTA integration as well as improved operatingmargins in each region of the world," stated Kenneth L. Way,Chairman and Chief Executive Officer of Lear Corporation. "Weincreased our backlog by winning two important contracts withPeugeot and another significant OEM which demonstrates thesynergies we are gaining from our UTA integration. Additionally,Automotive & Transportation Interiors Magazine recently honoredLear and our extractable seat with the top prize in its 1999Design and Technology Awards. Every Formula One driver competingin the 1999 Formula One Series now uses a version of this seatmade in accordance with Lear design specifications. Theseaccomplishments continue to demonstrate Lear's ability to createvalue, adapt rapidly and lead the automotive supplier industry indeveloping exciting and new ways to serve our global customers." Net income for the quarter ended October 2, 1999 increased 82percent to $39.3 million, or $.58 per share, compared withearnings of $21.6 million, or $.32 per share, last year.Operating income for the third quarter of 1999 increased 120percent to $151.7 million, from $69.1 million in the thirdquarter of 1998. Net sales for the third quarter of 1999 rose approximately 57percent to $3.0 billion from $1.9 billion last year. The increasewas primarily attributable to both incremental revenues fromLear's recent acquisitions, as well as internal growth. Geographically, approximately 26 percent of the currentquarter's $1.1 billion sales increase was attributable to Lear'soperations outside of the U.S. and Canada. 1999 third quartersales in Europe increased 45 percent to $920 million, while salesin other world regions increased 3 percent to $211 million. U.S.and Canadian sales in the 1999 third quarter rose 73 percent toover $1.9 billion. Net income for the nine months ended October 2, 1999 increased22 percent to $164.4 million, or $2.42 per share, compared withearnings of $134.6 million, or $1.97 per share, last year.Operating income for the first nine months of 1999 advanced 45percent to $462.9 million, from $319.4 million in last year'scomparable period. Net sales for the nine months ended October 2, 1999 rose 46percent to $9.0 billion from $6.2 billion in last year'scomparable period. The increase was primarily attributable toincremental revenues from Lear's recent acquisitions, as well asinternal growth. Geographically, approximately 30 percent of the sales increasefor the first nine months of 1999 was attributable to Lear'soperations outside of the U.S. and Canada. For the first ninemonths of 1999, European sales increased 45 percent to $2.8billion, while sales in other world regions decreasedapproximately 5 percent to $575 million, primarily due to theweak economic situation in South America. U.S. and Canadian salesfor the first nine months of 1999 increased approximately 54percent to $5.6 billion. A Fortune 200 Company, Lear Corporation is one of the world'slargest automotive suppliers, with 1998 pro forma sales of morethan $12 billion. The Company's world-class products aredesigned, engineered and manufactured by more than 100,000employees in over 300 facilities located in 33 countries.Information about Lear and its products is available on theInternet 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 as a result of certain risks and uncertainties, includingbut not 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)

(For the Quarters Ended 10/2/99 And 9/26/98)

Third Quarter

1999

1998 Net sales

$3,046.7 $1,946.5 Cost of sales

2,741.8 1,784.5 Selling, general & administrative

131.3

80.1 Amortization of goodwill

21.9

12.8 Operating income

151.7

69.1 Interest expense

71.3

29.0 Other expense

13.4

4.5 Income before provision for national income taxes

67.0

35.6 Provision for national income taxes

27.7

14.0 Net income

$39.3

$21.6 Basic net income per share

$0.59

$0.32 Diluted net income per share

$0.58

$0.32 Weighted average diluted shares outstanding

67.9

68.2 Depreciation and amortization

$94.3

$57.2 Capital expenditures

$94.4 $111.8

Nine Months Ended

1999

1998 Net sales

$8,967.5 $6,153.6 Cost of sales

8,104.7 5,559.8 Selling, general & administrative

344.7

238.6 Amortization of goodwill

55.2

35.8 Operating income

462.9

319.4 Interest expense

161.6

79.2 Other expense

28.6

18.0 Income before provision for national income taxes

272.7

222.2 Provision for national income taxes

108.3

87.6 Net income

$164.4 $134.6 Basic net income per share

$2.46

$2.01 Diluted net income per share

$2.42

$1.97 Weighted average diluted shares outstanding

67.8

68.3 Depreciation and amortization

$244.4 $163.7 Capital expenditures

$257.0 $236.9 LEAR CORPORATION AND SUBSIDIARIES Consolidated Balance Sheet ($ In Millions) ASSETS

10/2/99 12/31/98

(Unaudited) CURRENT ASSETS: Cash and cash equivalents

$71.4

$30.0 Accounts receivable, net

2,013.6 1,373.9 Inventories

570.4

349.6 Other

780.2

444.5

3,435.6 2,198.0 LONG-TERM ASSETS: Property, plant and equipment, net

1,870.0 1,182.3 Goodwill, net

3,328.3 2,019.8 Other

391.8

277.2 TOTAL ASSETS

$ 9,025.7 $5,677.3 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Short-term borrowings

$ 111.2 $ 82.7 Accounts payable

1,982.5 1,600.8 Accrued liabilities

1,254.1

797.5 Current portion of long-term debt

13.6

16.5

3,361.4 2,497.5 LONG-TERM LIABILITIES: Deferred national income taxes

94.0

39.0 Long-term debt

3,756.6 1,463.4 Other

400.4

377.4

4,251.0 1,879.8 STOCKHOLDERS' EQUITY

1,413.3 1,300.0 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$9,025.7 $5,677.3 otsOriginal Text Service: Lear Corporation Internet:http://www.newsaktuell.de Contact: Derek Fiebig, investors, 248-447-1624, or Karen Stewart-Spica, media, 248-447-1651, both ofLear Corporation 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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