Lear Corporation Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2013 FY ended in Dec. 31, 2012 Rate of change (%) Factors
Net Sales 16,234.0 14,567.0 11.4 1)
Consolidated Net Income 455.8 1,317.2 (65.4) -
Seating Segment
Sales 12,018.1 11,029.6 9.0 2)
Electrical Segment
Sales 4,215.9 3,537.4 19.2 3)

1) Net Sales
-In 2013, the Company's net sales increased 11.4% over the previous year to USD 16,234.0 million. New business created a positive impact of USD 930 million. Other contributing factors the increase in sales included a USD 541 million effect from improved production volumes on key platforms and a USD 142 million impact from the Guilford acquisition.

2) Seating
-Net sales for the Company's seating segment grew 9.0% to USD 12,018.1 million in 2013. One of the primary contributors to the sales increase was new business, which provided a USD 421 million positive impact. Improved production volumes and the full year impact of the Guilford acquisition also improved net sales by USD 331 million and USD 142 million respectively.

3) Electrical
-The Company's electrical segment had net sales of USD 4,215.9 million in 2013, up 19.2% from 2012. The increase in sales came from new business and improved production volumes on key Company platforms, which contributed USD 509 million and USD 210 million respectively.

Recent Development

-The Company debuted its 2014 line of automotive fabric and leather concepts at The Fillmore Detroit Theater. The 2014 collection features six different automotive seat surface materials, each with its own unique characteristics.
  • Aventino Signature – enhanced design potential through processes such as perforation, embossing, laser etching and printing
  • Aventino Defense – light leather color with protective features including dye transfer prevention and greater cleaning capabilities
  • TeXstyle Defense – layered fabric with extra spill protection and improved prevention against staining, mildew, dust and bacteria
  • TeXstyle Enhance – increased design flexibility by allowing embossing, printing, laser etching, embroidery and sonic welding
  • TeXstyle Lite – cost-effective lightweight material for a seat's low wear areas
  • TeXstyle Tough – designed for high wear applications due to sturdy construction


-The Company expects to achieve net sales ranging between USD 16.9 billion and 17.4 billion for the fiscal year ending December 31, 2014. It also expects to have an adjusted net income attributable to itself in the range of USD 560 million to 595 million.


R&D Expenditure

(in million USD)
  FY ended in Dec. 31, 2013 FY ended in Dec. 31, 2012 FY ended in Dec. 31, 2011
Overall 108 104 111

R&D Structure

-The Company's electrical segment has over 1,900 engineers working in research and development

-Advanced technology development is conducted worldwide at six advanced technology centers and at the Company's product engineering centers. The global innovation and technology center in Southfield, Michigan is the Company's central facility for research and development.

Investment Activities

Capital Expenditure

(in million USD)
  FY ended in Dec. 31, 2013 FY ended in Dec. 31, 2012 FY ended in Dec. 31, 2011
Seating 288.5 290.7 184.0
Electrical 163.4 158.1 139.4
Other 8.7 9.5 6.1
Total 460.6 458.3 329.5

-The Company expects to spend approximately USD 450 million in captial expenditures in the fiscal year ending December 31, 2014.

Investment Outside USA

-The Company announced that its new seating plant in Iasi, Romania, would open in January 2014. Serving all major European automotive manufacturers, the new facility employs approximately 1,500 people, with an emphasis on seating surface materials along with cutting and sewing capabilities. (From a press release on November 19, 2013)

-Tachi-S Co., Ltd. began construction on a new automotive seating plant in Dalian City, Liaoning Province, China through a joint project with Lear Dongfeng Automotive Seating Co., Ltd., a Chinese joint venture of the Company. The plant is expected to eventually have the capacity to produce seats for approximately 200,000 vehicles a year. Construction work began based on an initial plan to supply seats for about 100,000 vehicles a year to Nissan Motor's new joint-venture facility that will commence production in 2014. (From an article in the Nikkan Jidosha Shimbun on February 13, 2013)