Lear Corp. logged an 11-percent drop in adjusted net income in the fourth quarter of 2013 to $128.8 million, the supplier said in a statement. The year-earlier figure of $144.6 million does not include a $767 million onetime tax gain in the United States. Lear posted a 14-percent leap in revenues to $4.26 billion in the fourth quarter from $3.72 billion in the same period in 2012.
Analysts on average had expected Lear to have $4.05 billion in revenues, according to Thomson Reuters I/B/E/S. Lear’s adjusted earnings of $1.55 per share failed to meet analysts' expectations by 4 cents. However, a large share buy-back program that trimmed Lear's outstanding shares allowed the supplier to improve its quarterly earnings per share from $1.48 in the same quarter in 2012.
For the full year 2013, Lear posted an adjusted net income of $510 million, down from $548 million in 2012. But on a per-share basis, net income grew to $5.90 from $5.49. Lear said it generated $16.2 billion in revenue for the year, up from $14.6 billion in 2012. According to Lear, it posted sales growth in all of its regions around the world.
The company benefited from: 5-percent surge in North American auto production to 16.8 million units; 8-percent climb in Chinese output; and 2-percent growth in Europe and Africa. North American and global vehicle production surged 5 percent and 6 percent in the fourth quarter, respectively. For 2014, Lear is expecting sales of between $16.9 billion and $17.4 billion while analysts on average are seeing revenues of $17.08 billion.