) plans to repurchase $600 million under its existing $1 billion
share repurchase program in 2013. In Jan 2013, the company has
authorized an additional $800 million shares for repurchase. With
this, the company had $1.0 billion worth of shares remaining
under its share repurchase program.
Previously, Lear extended the authorization of repurchase till
Jan 10, 2016. However, due to the rapid pace of share
repurchases, the company expects to complete the current share
buyback program by the end of 2014.
Lear repurchased 1.2 million shares for $50 million in the
quarter. During 2012, the company has repurchased 5.4 million
shares for $223 million. Since the inception of the share
repurchase program, the company has repurchased 11.5 million
shares for $502 million.
In addition to the aggressive share repurchase policy, the Board
of Directors of the company approved a 21% increase in quarterly
dividend to 17 cents from 14 cents per share. The dividend is
payable on Mar 20 to shareholders of record as of Mar 1. The
management believes that twin policy of increasing dividend and
accelerating share repurchase program will add shareholders
Lear Corporation designs, manufactures, assembles and supplies
automotive seat systems, electrical distribution systems and
related components primarily to automotive original equipment
manufacturers. The company sells its products chiefly in North
America, South America, Europe and Asia. The company retains a
Zacks Rank #3 (Hold).
Lear posted a 17.5% rise in adjusted earnings per share to $1.48
in the fourth quarter of 2012 from $1.26 in the corresponding
quarter last year. Profits in the quarter beat the Zacks
Consensus Estimate by a dime. In absolute terms, profits went up
10.4% to $144.6 million from $131.0 million in the year-ago
Revenues increased 6% to $3.7 million in the reported quarter,
surpassing the Zacks Consensus Estimate of $3.5 million. Global
industry production increased 2% year over year, with a 10% hike
in North America and 4% rise in China. However, production in
Europe decreased 8%.
Commercial Vehicle Group Inc
) with Zacks Rank #1 (Strong Buy) are performing well in the same
industry where Lear operates.
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