Lear Corporation to split its stock two-for-one

Article by Christian A., 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:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries