For the fourth quarter of 2010, Lear Corp.’s net income remained low as it didn’t have the restructuring credits it received for its bankruptcy last year. Lear, which supplies electronics and seating equipment, posted significant increases in fourth-quarter and year-end revenue.
It reported a net income of $117.1 million on revenue of $3.2 billion in the fourth quarter, compared with net income of $1.2 billion on revenue of $2.7 billion for the same period in 2009. The marked decrease in income is because of a $1.5 billion restructuring credit Lear used last year during its Chapter 11 bankruptcy.
Lear emerged from court protection in November 2009. For the entire year of 2010, Lear had a net income of $438.8 million on revenue of $12 billion, compared with $831.7 million on revenue of $9.7 billion in 2009.
In a statement, Lear CEO Robert Rossiter said that the company was able to achieve strong financial results and produce significant cash flow because of structural cost reductions and improvements in its manufacturing footprint implemented in the last several years.
He added that the company has also completed a refinancing of its capital structure. Rossiter revealed that Lear’s balance sheet is in its “best shape” ever as it continues to win new business globally. The company anticipates improvements to continue in its operating performance in 2011.
Lear now projects 2011 revenue of $12.6 billion to $13 billion and operating income of $700 million to $740 million, with free cash flow of about $400 million. [via autonews - sub. required]