Lear Corporation to split its stock two-for-one

Article by Christian Andrei, on February 20, 2011

Lear Corp. said on Thursday it would split its stock two-for-one, begin a $400 million share buyback program and start paying a quarterly dividend -- steps that prove how it is progressing in shoring up its balance sheet after a 2009 bankruptcy. Lear, which supplies auto seating systems and electrical systems, said it will pay a quarterly dividend of 25 cents per share on a pre-split basis.

Lear, which came out of bankruptcy in November 2009, has benefited from a drop in costs and production capacity and a recovery in global auto production during the last 18 months.

Shares in Lear rose by 1% in early trading. Since May 2010, the stock has gained over 60%. Based on its shares outstanding before the split, the new quarterly dividend will cost Lear almost $53 million each year. The share buyback program runs until February 2014.

According to one analyst, the moves that Lear has taken will help improve both investor interest and liquidity in the stock, which surpassed the $100-per-share threshold earlier this month.

In early trading, Lear's shares increased $1.76 or 1.6% to $112.89. In a note for clients, KeyBanc Capital Markets analyst Brett Hoselton said that it looks at this report favorably and it is “encouraged to see (Lear) return cash to shareholders in the form of both dividends and share repurchase.” [via autonews - sub. required]

Topics: lear

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016