Lear Corporation (NYSE: LEA), a leading global supplier of automotive seating and electrical systems, today announced that its Board of Directors has authorized an increase in the Company’s share repurchase authorization to $1 billion and extended the authorization period until December 31, 2019. In addition, the Board increased by 67% the quarterly cash dividend on the Company’s common stock from $0.30 per share to $0.50 per share. The next dividend is payable on March 23, 2017 to shareholders of record at the close of business on March 3, 2017.
“The Lear Board of Directors is committed to delivering superior returns to our shareholders,” said Henry D. G. Wallace, Lear’s Non-Executive Chairman. “The shareholder actions announced today demonstrate the confidence Lear’s Board of Directors has in the Company’s outlook. The Board believes that the Company’s balanced strategy of investing in the business and consistently returning cash to shareholders, while maintaining a strong and flexible balance sheet, will allow Lear to continue to create significant value for shareholders.”
“The Company’s strong operating performance, record financial results and record sales backlog are allowing us to significantly increase our quarterly cash dividend and continue our proven track record of returning capital to our shareholders. The investments we have made in our business have put the Company in the strongest competitive position in our history. Lear is extremely well positioned for future profitable growth and success,” said Matt Simoncini, Lear President and Chief Executive Officer.
At the end of 2016, Lear had $341 million remaining on its share repurchase authorization. Including today’s action, Lear’s total available share repurchase authorization is $1 billion.
Since the Company began its share repurchase and dividend programs in 2011, Lear has returned approximately $3.5 billion to shareholders, including the repurchase of nearly 40% of the Company’s shares outstanding. In addition, Lear’s total shareholder return over the last five years was 250%, exceeding every peer shown in the Company’s Annual Report on Form 10-K and more than 2 ½ times the return for the S&P 500.
Lear may implement share repurchases under the new share repurchase authorization utilizing a variety of methods including open market purchases, accelerated share repurchase programs and structured repurchase transactions. Share repurchases are subject to the Company’s alternative uses of capital and prevailing financial, market and industry conditions.
Lear’s 2017 Annual Stockholder Meeting will be held on May 18, 2017 at 9:00 a.m. Eastern Time, at the Company’s corporate headquarters, 21557 Telegraph Road, Southfield, Michigan 48033. The record date for determining eligibility to vote at the 2017 Annual Meeting is March 23, 2017.
