Lear Corporation Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of change (%) Factors
Net Sales 17,727.3 16,234.0 9.2 1)
Consolidated Net Income 702.3 455.8 54.1 -
Seating Segment
Sales 13,310.6 12,018.1 10.8 2)
Electrical Segment
Sales 4,416.7 4,215.9 4.8 3)

1) Net Sales
-In the fiscal year ended December 31, 2014, the Company's sales increased by 9.2% over the previous year to USD 17,727.3 million. New business contributed USD 990 million to the increase while improved production contributed USD 747 million. This was slightly offset by a negative foreign exchange rate impact of USD 158 million.

2) Seating
-The Company's seating segment grew 10.8% to USD 13,310.6 million in the fiscal year ended December 31, 2014. Gains came from improved production volumes and new business, which contributed USD 721 million and USD 671 million respectively.

3) Electrical
-Sales for the Company's electrical segment in the fiscal year ended December 31, 2014 increased by 4.8% over the previous year to USD 4,416.7 million. The acquisition of new business increased sales by USD 319 million, which was partially offset by selling price reductions and a negative foreign exchange impact which totaled USD 156 million.


-The Company announced that it has signed a definitive agreement to acquire Eagle Ottawa, LLC, a supplier of automotive leather headquartered in Auburn Hills, Michigan, U.S., for USD 850 million. Eagle Ottawa has annual sales of approximately USD 1 billion, and supplies its products to North American, Asian, and European markets. The transaction is expected to close in the first quarter of 2015. (From a press release on August 27, 2014)

Joint Venture

-Tachi-S Co., Ltd. and the Company agreed to change the shareholding ratio of their four TACLE Seating joint ventures. Tachi-S will acquire 100% ownership of Thai and American JVs, while the Company will acquire 100% of the JVs in the UK and India to improve and accelerate response to customers in each market. The partnership between the two companies began in 2005 to supply seats to Nissan's overseas plants. As each JV's management and production operations stabilized, the companies decided to change the ownership ratio to strengthen each business. (From an article in the Nikkan Jidosha Shimbun on April 18, 2014)


-On July 22, 2014, one of the Company's joint ventures, Lear Dongfeng Automotive Seating Co., Ltd., announced that its Yancheng Plant's rear seat development project for Dongfeng Yueda Kia's K4 passed the automaker's testing. This allows the company to begin mass production of rear seats for the K4 and development of new seats for the JFC (development code). (From a press release on August 10, 2014)


-The Company expects its sales to range from USD 18.5 billion to USD 19.0 billion in the fiscal year ending December 31, 2015. The adjusted net income attributable to the Company is projected to be between USD 720 million and 755 million.


R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 102 108 104

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 Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Seating 268.9 288.5 290.7
Electrical 138.4 163.4 158.1
Other 17.4 8.7 9.5
Total 424.7 460.6 458.3

-The Company expects its capital expenditures to be approximately USD 500 million for the fiscal year ending December 31, 2015.

Investments outside U.S.

-The Company announced the official opening of a new automotive facility in Kenitra, Morocco, which manufactures wire harnesses. The new facility supplies electrical distribution systems to major European automakers. The 300,000-square-foot facility currently has approximately 1,000 employees and will employ approximately 1,700 people by the end of 2014. (From a press release on May 6, 2014)

-The Company held an opening ceremony for its new Asia corporate headquarters and regional Product and Technology Center located in the Yangpu District of Shanghai, China. The facility will employ 600 people and support approximately 21,000 employees across eleven countries in Asia, including almost 11,000 in China. The new regional Product and Technology Center will showcase the Company's leading products in automotive seating and electrical distribution, including high power products for electrical and hybrid vehicles. (From a press release on March 12, 2014)