SEC Filing | Lear Corporation

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 31, 2008

LEAR CORPORATION

(Exact name of Registrant as specified in its charter)

Delaware	1-11311	13-3386776
(State or other	(Commission File Number)	(IRS Employer
jurisdiction of		Identification
incorporation)		Number)


21557 Telegraph Road, Southfield, Michigan		48033
(Address of principal executive offices)		(Zip Code)

	(248) 447-1500

	(Registrant’s telephone number, including area code)

	N/A

	(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Lear Corporation (“Lear” or the “Company”) is filing this Form 8-K to (i) furnish information regarding Lear’s results of operations for the fourth quarter and full year of 2007, (ii) update Lear’s financial outlook for 2008 and (iii) supplement Lear’s Current Report on Form 8-K initially filed on June 27, 2005, as supplemented on August 30, 2005, January 25, 2006, October 26, 2006, January 11, 2007, January 25, 2007, April 25, 2007, August 2, 2007, November 6, 2007 and December 20, 2007, in order to update certain disclosures with respect to Lear’s restructuring strategy (the “Restructuring”).

FORWARD-LOOKING STATEMENTS

The Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties, including but not limited to, general economic conditions in the markets in which the Company operates, including changes in interest rates or currency exchange rates, the financial condition of the Company’s customers or suppliers, fluctuations in the production of vehicles for which the Company is a supplier, changes in the Company’s current vehicle production estimates, the loss of business with respect to, or the lack of commercial success of, a vehicle model for which the Company is a significant supplier, disruptions in the relationships with the Company’s suppliers, labor disputes involving the Company or its significant customers or suppliers or that otherwise affect the Company, the Company’s ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions, the outcome of customer productivity negotiations, the impact and timing of program launch costs, the costs, timing and success of restructuring actions, increases in the Company’s warranty or product liability costs, risks associated with conducting business in foreign countries, competitive conditions impacting the Company’s key customers and suppliers, the cost and availability of raw materials and energy, the Company’s ability to mitigate any increases in raw material, energy and commodity costs, the outcome of legal or regulatory proceedings to which the Company is or may become a party, unanticipated changes in cash flow, including the Company’s ability to align its vendor payment terms with those of its customers and other risks described from time to time in the Company’s Securities and Exchange Commission filings. In particular, the Company’s financial outlook for 2008 is based on several factors, including the Company’s current vehicle production and raw material pricing assumptions. The Company’s actual financial results could differ materially as a result of significant changes in these factors.

The forward-looking statements in this Current Report on Form 8-K are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof.

Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

The following information is provided pursuant to Item 2.02 of Form 8-K, “Results of Operations and Financial Condition,” and Item 7.01 of Form 8-K, “Regulation FD Disclosure.”

On January 31, 2008, Lear Corporation issued a press release reporting its financial results for the fourth quarter and full year of 2007 and updating its financial outlook for 2008. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

On January 31, 2008, Lear Corporation made available the presentation slides attached hereto as Exhibit 99.2 in a webcast of its fourth quarter and full year 2007 earnings call. Exhibit 99.2 is incorporated by reference herein.

The information contained in Exhibits 99.1 and 99.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 2.05 Costs Associated with Exit or Disposal Activities.

As part of its previously announced Restructuring, Lear has continued consolidation, facility realignment and census actions. In 2007, these actions resulted in net charges of $181.8 million, consisting of employee termination costs of $115.5 million, fixed asset impairment charges of $16.8 million, contract termination costs of $24.8 million (including net pension and other postretirement benefit plan curtailment losses of $18.8 million) and other costs of $24.7 million (including $13.0 million of estimated manufacturing inefficiency costs resulting from the Restructuring). The severance and other incremental costs represent cash charges, while the asset impairment charges represent non-cash charges. Cash payments related to the Restructuring totaled $111.4 million in 2007.

Through December 31, 2007, the Company has incurred costs of approximately $385.9 million in connection with the Restructuring. Approximately 90% of the restructuring costs will result in cash expenditures.

Item 2.06 Material Impairments.

The information set forth under Item 2.05 relating to impairment charges is incorporated herein by reference.

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

See “Item 2.02 Results of Operations and Financial Condition” above.

Section 9 – Financial Statements and Exhibits

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d)	Exhibits

99.1		Press release issued January 31, 2008, furnished herewith.

99.2		Presentation slides from the Lear Corporation webcast of its fourth quarter and full year 2007 earnings call held on January 31, 2008, furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	Lear Corporation


Date: January 31, 2008	By:	/s/ Matthew J. Simoncini

	Name:		Matthew J. Simoncini
	Title:		Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.		Description


99.1		Press release issued January 31, 2008, furnished herewith.

99.2		Presentation slides from the Lear Corporation webcast of its fourth quarter and full year 2007 earnings call held on January 31, 2008, furnished herewith.

Exhibit 99.1

FOR IMMEDIATE RELEASE

Investor Relations:

Mel Stephens

(248) 447-1624

Media:

Andrea Puchalsky

(248) 447-1651

Lear Reports Improved Fourth-Quarter and Full-Year 2007 Results and Updates 2008 Financial Outlook

SOUTHFIELD, Mich., January 31, 2008 -- Lear Corporation [NYSE: LEA], one of the world’s largest suppliers of automotive seating systems, electrical distribution systems and electronic products, today reported improved financial results for the fourth quarter and full year 2007 compared with year-ago levels and updated its financial outlook for 2008.

Fourth-Quarter and Full-Year 2007 Highlights:

Net sales in core businesses up 6% in Q4 and 5% for FY vs. year ago

Core operating earnings up 11% in Q4 and 34% for FY vs. year ago

Free cash flow of $434 million for full year – best since 2003

Continued to diversify sales – about 60% of revenue outside of N.A. in Q4

Aggressive actions taken to improve cost structure since 2005

ProTec™ PluS named finalist in 2008 Automotive News PACE Awards

For the fourth quarter of 2007, Lear reported net sales of $3.9 billion and pretax income of $45.1 million, including restructuring costs and other special items of $94.9 million. This compares with net sales of $4.3 billion and a pretax loss of $635.9 million for the fourth quarter of 2006, including a loss of $607.3 million related to the divestiture of the Interior business and restructuring costs and other special items of $91.8 million.

Income before interest, other (income) expense, income taxes, restructuring costs and other special items (core operating earnings) was $178.6 million in the fourth quarter of 2007. This compares with core operating earnings of $161.1 million in the fourth quarter of 2006, excluding the divested Interior business. A reconciliation of core operating earnings to pretax income (loss) as determined by generally accepted accounting principles is provided in the supplemental data pages.

“We have been successful in restructuring our operations to achieve improved financial results at lower production levels,” said Lear Chairman, CEO and President Bob Rossiter. “We remain committed to continuously improving the fundamentals of our business – quality, customer satisfaction, innovation and cost structure. Going forward, the Lear team is focused on profitably growing and further improving the long-term competitiveness of our seating and electrical and electronic businesses.”

For the fourth quarter of 2007, net sales in Lear’s core businesses were up over $200 million from the prior year, primarily reflecting favorable foreign exchange and the addition of new business outside of North America, offset in part by unfavorable platform mix in North America. Operating performance improved from the year-earlier results, reflecting the Company’s cost improvement actions and restructuring initiative, as well as benefits from new business outside of North America.

In the seating segment, operating margins were unchanged from a year ago, reflecting favorable cost performance from restructuring and ongoing efficiency actions, selective vertical integration and the benefit of new business globally, offset by unfavorable platform mix in North America. In the electrical and electronic segment, operating margins improved slightly reflecting the favorable impact of net commodity costs.

Lear reported fourth-quarter 2007 net income of $27.0 million, or $0.34 per share, including restructuring costs and other special items. This compares with a net loss of $645.0 million, or $8.90 per share, including restructuring costs and other special items, for the fourth quarter of 2006.

Free cash flow in the fourth quarter of 2007 was $170.9 million, compared with $254.4 million in the fourth quarter of 2006. The lower cash flow reflects primarily the timing of engineering and tooling recoveries. (Net cash provided by operating activities was $157.4 million and $179.2 million in the fourth quarters of 2007 and 2006, respectively. A reconciliation of free cash flow to net cash provided by operating activities is provided in the supplemental data pages.)

Also during the fourth quarter, Lear’s ProTec™ PluS self-aligning active head restraint system was selected as a finalist and Lear’s SoyFoam™ received honorable mention in the 14th annual PACE (Premier Automotive Suppliers’ Contribution to Excellence) Award competition, which is jointly presented by Automotive News, Microsoft, SAP and Transportation Research Center Inc.

2007 Full-Year Results

For the full year 2007, Lear reported net sales of $16.0 billion and pretax income of $331.4 million, including restructuring costs and other special items of $204.9 million. This compares with net sales of $17.8 billion and a pretax loss of

$655.5 million, including restructuring costs and other special items of $770.2 million, for the full year 2006.

Full-year 2007 net sales in core businesses were $15.3 billion, up about $700 million from 2006, reflecting the addition of new business primarily outside of North America and favorable foreign exchange, offset by lower industry production and unfavorable platform mix in North America.

Excluding the divested Interior business, income before interest, other expense, income taxes, restructuring costs and other special items (core operating earnings) was $748.5 million in 2007, compared with $557.8 million in 2006. The improvement reflects favorable cost performance from restructuring and ongoing efficiency actions, selective vertical integration and the benefit of new business, partially offset by lower industry production and unfavorable platform mix in North America. A reconciliation of core operating earnings to pretax income (loss) as determined by generally accepted accounting principles is provided in the supplemental data pages.

“We have seen promising results from our strategy to restructure our global operations, deliver superior quality products and service, encourage innovation and continue to diversify our sales on a customer, regional and vehicle segment basis,” Rossiter continued.

Lear reported net income of $241.5 million, or $3.09 per share, including restructuring costs and other special items, for the full-year 2007. This compares with a net loss of $707.5 million, or $10.31 per share, including special items, for the full-year 2006. Lear’s 2007 net income excluding restructuring costs and other special items (adjusted net income) was $409.6 million, or $5.24 per share. A reconciliation of adjusted net income to net income as determined by generally accepted accounting principles is provided in the supplemental data pages.

Free cash flow in 2007 was $433.6 million. This compares with free cash flow of $115.7 million in 2006. The improvement reflects higher earnings and the divestiture of the Interior business. (Net cash provided by operating activities was $466.9 million and $285.3 million in 2007 and 2006, respectively. A reconciliation of free cash flow to net cash provided by operating activities is provided in the supplemental data pages.)

Lear continued to diversify its sales, with about 60% of revenue in the fourth quarter and 55% of revenue in the full year generated outside of North America. Lear also continued to improve its business structure by implementing $386 million in global restructuring actions since 2005.

2008 Full-Year Outlook

Summarized below is our 2008 financial outlook. Lear expects 2008 worldwide net sales of approximately $15 billion, reflecting primarily the addition of

new business globally and the positive impact of foreign exchange, more than offset by lower vehicle production and unfavorable platform mix in North America.

Lear anticipates 2008 income before interest, other expense, income taxes, restructuring costs and other special items (core operating earnings) of $660 to $700 million. Restructuring costs in 2008 are estimated to be about $100 million.

Interest expense for 2008 is estimated to be between $185 and $195 million. Pretax income before restructuring costs and other special items is estimated to be in the range of $430 to $470 million. Tax expense is expected to be approximately $135 million, depending on the mix of earnings by country.

Capital spending in 2008 is estimated in the range of $255 to $275 million. Depreciation and amortization expense is estimated at about $300 million. Free cash flow is expected to be solidly positive, at $250 million or more, for the year.

Key assumptions underlying Lear’s financial outlook include expectations for industry vehicle production of approximately 14.4 million units in North America and 20.1 million units in Europe. Lear expects production for the Domestic Three to be down about 9% in North America. In addition, we are assuming an exchange rate of $1.45/Euro.

Lear will webcast its fourth-quarter earnings conference call through the Investor Relations link at http://www.lear.com at 9:00 a.m. EST. In addition, the conference call can be accessed by dialing 1-800-789-4751 (domestic) or 1-706-679-3323 (international). The audio replay will be available two hours following the call at 1-800-642-1687 (domestic) or 1-706-645-9291 (international) and will be available until February 10, 2008, with a Conference I.D. of 27464814. Interested parties may also listen to the live audio webcast of the call, in listen-only mode, on the corporate website at http://www.lear.com.

Non-GAAP Financial Information

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”) included throughout this press release, the Company has provided information regarding “income before interest, other (income) expense, income taxes, restructuring costs and other special items, excluding the divested Interior business” (core operating earnings), “pretax income before restructuring costs and other special items”, “net income excluding restructuring costs and other special items” (adjusted net income) and “free cash flow” (each, a non-GAAP financial measure). Other (income) expense includes, among other things, state and local non-income taxes, foreign exchange gains and losses, fees associated with the Company’s asset-backed securitization and factoring facilities, minority interests in consolidated subsidiaries, equity in net income of affiliates and gains and losses on the sale of assets. Free cash flow represents net cash provided by operating activities before the net change in sold accounts receivable, less capital expenditures. The Company believes it is

appropriate to exclude the net change in sold accounts receivable in the calculation of free cash flow since the sale of receivables may be viewed as a substitute for borrowing activity.

Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that core operating earnings, pretax income before restructuring costs and other special items and adjusted net income are useful measures in assessing the Company’s financial performance by excluding certain items (including those items that are included in other expense) that are not indicative of the Company’s core operating earnings or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company’s results of operations and provide improved comparability between fiscal periods. Management believes that free cash flow is useful to both management and investors in their analysis of the Company’s ability to service and repay its debt. Further, management uses these non-GAAP financial measures for planning and forecasting in future periods.

Core operating earnings, pretax income before restructuring costs and other special items, adjusted net income and free cash flow should not be considered in isolation or as a substitute for pretax income (loss), net income (loss), cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt and therefore, does not reflect funds available for investment or other discretionary uses. Also, these non-GAAP financial measures, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies.

For reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, see the supplemental data pages which, together with this press release, have been posted on the Company’s website through the Investor Relations link at http://www.lear.com. Given the inherent uncertainty regarding special items, other expense and the net change in sold accounts receivable in any future period, a reconciliation of forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is not feasible. The magnitude of these items, however, may be significant.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties,

including but not limited to, general economic conditions in the markets in which the Company operates, including changes in interest rates or currency exchange rates, the financial condition of the Company’s customers or suppliers, fluctuations in the production of vehicles for which the Company is a supplier, changes in the Company’s current vehicle production estimates, the loss of business with respect to, or the lack of commercial success of, a vehicle model for which the Company is a significant supplier, disruptions in the relationships with the Company’s suppliers, labor disputes involving the Company or its significant customers or suppliers or that otherwise affect the Company, the Company’s ability to achieve cost reductions that offset or exceed customer-mandated selling price reductions, the outcome of customer productivity negotiations, the impact and timing of program launch costs, the costs, timing and success of restructuring actions, increases in the Company’s warranty or product liability costs, risks associated with conducting business in foreign countries, competitive conditions impacting the Company’s key customers and suppliers, the cost and availability of raw materials and energy, the Company’s ability to mitigate any increases in raw material, energy and commodity costs, the outcome of legal or regulatory proceedings to which the Company is or may become a party, unanticipated changes in cash flow, including the Company’s ability to align its vendor payment terms with those of its customers and other risks described from time to time in the Company’s Securities and Exchange Commission filings. In particular, the Company’s financial outlook for 2008 is based on several factors, including the Company’s current vehicle production and raw material pricing assumptions. The Company’s actual financial results could differ materially as a result of significant changes in these factors.

The forward-looking statements in this press release are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof.

Lear Corporation is one of the world’s largest suppliers of automotive seating systems, electrical distribution systems and electronics products. The Company’s world-class products are designed, engineered and manufactured by a diverse team of more than 90,000 employees at 236 facilities in 34 countries. Lear’s headquarters are in Southfield, Michigan, and Lear is traded on the New York Stock Exchange under the symbol [LEA]. Further information about Lear is available on the internet at http://www.lear.com.

Lear Corporation and Subsidiaries

Consolidated Statements of Operations

(In millions, except per share amounts)

	Three Months Ended

	December 31,			December 31,
	2007			2006


Net sales	$	3,859.0		$	4,280.5

Cost of sales		3,626.3			4,042.9
Selling, general and administrative expenses		146.1			152.8
Divestiture of Interior business		2.9			607.3
Interest expense		48.9			52.3
Other (income) expense, net		(10.3	)		61.1


Income (loss) before income taxes		45.1			(635.9	)
Income tax provision		18.1			9.1

Net income (loss)	$	27.0		$	(645.0	)


Basic net income (loss) per share	$	0.35		$	(8.90	)


Diluted net income (loss) per share	$	0.34		$	(8.90	)


Weighted average number of shares outstanding
Basic		77.2			72.5

Diluted		78.3			72.5

Lear Corporation and Subsidiaries

Consolidated Statements of Operations

(In millions, except per share amounts)

	Twelve Months Ended

	December 31,		December 31,
	2007		2006


Net sales	$	15,995.0	$	17,838.9

Cost of sales		14,846.5		16,911.2
Selling, general and administrative expenses		574.7		646.7
Goodwill impairment charge		—		2.9
Divestiture of Interior business		10.7		636.0
Interest expense		199.2		209.8
Other expense, net		32.5		87.8


Income (loss) before income taxes and
cumulative effect of a change in accounting principle		331.4		(655.5	)
Income tax provision		89.9		54.9


Income (loss) before cumulative effect of a change in accounting principle		241.5		(710.4	)

Cumulative effect of a change in accounting principle		—		2.9


Net income (loss)	$	241.5	$	(707.5	)



Basic net income (loss) per share
Income (loss) before cumulative effect of a change in accounting principle	$	3.14	$	(10.35	)
Cumulative effect of a change in accounting principle		—		0.04

Basic net income (loss) per share	$	3.14	$	(10.31	)



Diluted net income (loss) per share
Income (loss) before cumulative effect of a change in accounting principle	$	3.09	$	(10.35	)
Cumulative effect of a change in accounting principle		—		0.04

Diluted net income (loss) per share	$	3.09	$	(10.31	)


Weighted average number of shares outstanding
Basic		76.8		68.6

Diluted		78.2		68.6

Lear Corporation and Subsidiaries

Consolidated Balance Sheets

(In millions)

	December 31,		December 31,
	2007		2006

ASSETS
Current:
Cash and cash equivalents	$	601.3	$	502.7
Accounts receivable		2,147.6		2,006.9
Inventories		605.5		581.5
Current assets of business held for sale		—		427.8
Other		363.6		371.4

		3,718.0		3,890.3

Long-Term:
PP&E, net		1,392.7		1,471.7
Goodwill, net		2,054.0		1,996.7
Other		635.7		491.8

		4,082.4		3,960.2


Total Assets	$	7,800.4	$	7,850.5



LIABILITIES AND STOCKHOLDERS’ EQUITY
Current:
Short-term borrowings	$	13.9	$	39.3
Accounts payable and drafts		2,263.8		2,317.4
Accrued liabilities		1,230.1		1,099.3
Current liabilities of business held for sale		—		405.7
Current portion of long-term debt		96.1		25.6

		3,603.9		3,887.3

Long-Term:
Long-term debt		2,344.6		2,434.5
Long-term liabilities of business held for sale		—		48.5
Other		761.2		878.2

		3,105.8		3,361.2


Stockholders’ Equity		1,090.7		602.0


Total Liabilities and Stockholders’ Equity	$	7,800.4	$	7,850.5

Lear Corporation and Subsidiaries

Supplemental Data

(Unaudited; in millions, except content per vehicle and share data)

	Three Months Ended

	December 31,			December 31,
	2007			2006

Net Sales
North America	$	1,566.4		$	2,240.1
Europe		1,781.0			1,591.8
Rest of World		511.6			448.6

Total	$	3,859.0		$	4,280.5


Net Sales - Core Businesses
North America	$	1,566.4		$	1,673.0
Europe		1,781.0			1,530.1
Rest of World		511.6			439.4

Total	$	3,859.0		$	3,642.5


Content Per Vehicle*
North America	$	431		$	621
North America - core businesses	$	431		$	463
Europe	$	355		$	333
Europe - core businesses	$	355		$	320

Free Cash Flow**
Net cash provided by operating activities	$	157.4		$	179.2
Net change in sold accounts receivable		101.6			154.3

Net cash provided by operating activities before
net change in sold accounts receivable		259.0			333.5
Capital expenditures		(88.1	)		(79.1	)

Free cash flow	$	170.9		$	254.4


Depreciation and Amortization	$	76.0		$	92.8

Core Operating Earnings**
Pretax income (loss)	$	45.1		$	(635.9	)
Interest expense		48.9			52.3
Other (income) expense, net		(10.3	)		14.1		***
Restructuring costs and other special items -
Divestiture of Interior business		2.9			607.3
Fixed asset impairment charges related to Interior business		—			0.8
Costs related to restructuring actions		93.9			42.5
Costs related to merger transaction		(1.9	)		—
Loss on extinguishment of debt		—			48.5
Less: Interior business		—			31.5

Core operating earnings	$	178.6	$	161.1

*	Content Per Vehicle for 2006 has been updated to reflect actual production levels.

**	See “Non-GAAP Financial Information” included in this press release.

***	Reported 2006 other expense, net of $61.1 million includes losses of $47.0 million related to restructuring costs and other special items detailed above.

Lear Corporation and Subsidiaries

Supplemental Data

(Unaudited; in millions, except content per vehicle and share data)

	Twelve Months Ended

	December 31,			December 31,
	2007			2006

Net Sales
North America	$	7,260.4		$	9,840.9
Europe		6,895.1			6,426.2
Rest of World		1,839.5			1,571.8

Total	$	15,995.0		$	17,838.9


Net Sales — Core Businesses
North America	$	6,648.4		$	7,297.3
Europe		6,827.1			5,785.7
Rest of World		1,830.6			1,538.7

Total	$	15,306.1		$	14,621.7


Content Per Vehicle *
North America	$	484		$	645
North America — core businesses	$	443		$	478
Europe	$	344		$	338
Europe — core businesses	$	341		$	304

Free Cash Flow **
Net cash provided by operating activities	$	466.9		$	285.3
Net change in sold accounts receivable		168.9			178.0

Net cash provided by operating activities before
net change in sold accounts receivable		635.8			463.3
Capital expenditures		(202.2	)		(347.6	)

Free cash flow	$	433.6		$	115.7


Depreciation and Amortization	$	296.9		$	392.2

Basic Shares Outstanding at end of year		77,189,965			76,251,990

Diluted Shares Outstanding at end of year ***		78,159,822			76,251,990

*	Content Per Vehicle for 2006 has been updated to reflect actual production levels.

**	See “Non-GAAP Financial Information” included in this press release.

***	Calculated using stock price at end of quarter. Excludes certain shares related to outstanding convertible debt, as well as certain options, restricted stock units, performance units and stock appreciation rights, all of which were antidilutive.

Lear Corporation and Subsidiaries

Supplemental Data

(Unaudited; in millions, except content per vehicle and share data)

	Twelve Months Ended

	December 31,				December 31,
	2007				2006

Core Operating Earnings *
Pretax income (loss)	$	331.4			$	(655.5	)
Interest expense		199.2				209.8
Other expense, net		28.6		**		72.1		**
Restructuring costs and other special items -
Costs related to divestiture of Interior business		20.7				636.0
Fixed asset impairment charges related to Interior business		—				10.0
Goodwill impairment charge related to Interior business		—				2.9
Costs related to restructuring actions		181.8				99.7
U.S. salaried pension plan curtailment gain		(36.4	)			—
Costs related to merger transaction		34.9				—
Loss on extinguishment of debt		—				48.5
(Gain) loss on joint venture transactions		3.9				(26.9	)
Less: Interior business		(15.6	)			161.2

Core operating earnings	$	748.5			$	557.8


Net Income excluding Restructuring Costs and
Other Special Items *
Net income (loss)	$	241.5			$	(707.5	)
Cumulative effect of a change in accounting principle		—				(2.9	)
Restructuring costs and other special items -
Costs related to divestiture of Interior business		20.7				636.0
Fixed asset impairment charges related to Interior business		—				10.0
Goodwill impairment charge related to Interior business		—				2.9
Costs related to restructuring actions		181.8				99.7
U.S. salaried pension plan curtailment gain		(36.4	)			—
Costs related to merger transaction		34.9				—
Loss on extinguishment of debt		—				48.5
(Gain) loss on joint venture transactions		3.9				(26.9	)
Tax impact of special items and other net tax adjustments ***		(36.8	)			(51.2	)

Adjusted net income	$	409.6			$	8.6

Net income (loss) per share	$	3.09			$	(10.31	)

Adjusted net income per share	$	5.24			$	0.12

See “Non-GAAP Financial Information” included in this press release.

Reported 2007 and 2006 other expense, net of $32.5 million and $87.8 million, respectively, include losses of $3.9 million and $15.7 million, respectively, related to restructuring costs and other special items detailed above.

***

Represents the tax effect of restructuring costs and other special items, as well as several discrete tax items. The identification of these tax items is judgmental in nature and their calculation is based on various assumptions and estimates.

a d v a n c e r e l e n t l e s s l y _®

January 31, 2008

Fourth-Quarter and Full-Year 2007
Results/2008 Financial Outlook

Exhibit 99.2

Agenda

Fourth-Quarter and Full-Year 2007 Results/
2008 Financial Outlook

Matt Simoncini, SVP and Chief Financial Officer

Strategic Objectives / Electrical and Electronic
Business Review

Dan Ninivaggi, Executive Vice President

Business Assessment and Outlook

Jim Vandenberghe, Vice Chairman

Q and A Session

Fourth-Quarter and
Full-Year 2007 Results/
2008 Financial Outlook

2007 Results – Core Businesses
Financial Highlights^*

Fourth-Quarter 2007

Net sales of $3.9 billion, up 6%

Core operating earnings of $179 million, up 11%

Free cash flow of $171 million

Full-Year 2007

Net sales of $15.3 billion, up 5%

Core operating earnings of $749 million, up 34%

Free cash flow of $434 million – best since 2003

Increased total Asian sales by 31% to $2.9 billion

Aggressive actions implemented to improve our cost structure

Core operating earnings represents income before interest, other expense, income taxes, restructuring costs and other special items, excluding the
divested Interior business.  Pretax income for the fourth-quarter and full-year 2007 was $45.1 million and $331.4 million, respectively.  Free cash flow
represents net cash provided by operating activities before net change in sold accounts receivable, less capital expenditures.  Net cash provided by
operating activities for the fourth-quarter and full-year 2007 was $157.4 million and $466.9 million, respectively.  Total Asian sales includes
consolidated and non-consolidated sales.  Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further
information.

2007 Results
Fourth Quarter Industry Environment

Fourth Quarter

2007

2007 vs. 2006

North American Production

Industry

3.6 mil

up 1%

Domestic Three

2.3 mil

down 2%

Lear’s Top 15 Platforms

1.0 mil

down 7%

European Production

Industry

5.0 mil

up 5%

Lear's Top 5 Customers

2.6 mil

up 4%

Key Commodities (Quarterly Average)

vs. Prior Quarter

Steel (Hot Rolled)

up 3%

down 5%

Copper

down 5%

up 2%

Crude Oil

up 21%

up 52%

2007 Results
Fourth Quarter Reported Financials

[in millions, except net income (loss) per share]

Fourth

Quarter 2007

Fourth

Quarter 2006

4Q '07

B/(W) 4Q '06

Net Sales

$3,859.0

$4,280.5

($421.5)

Income Before Interest, Other (Income)

Expense and Income Taxes*

$86.6

$84.8

$1.8

Pretax Income (Loss)

$45.1

($635.9)

$681.0

Net Income (Loss)

$27.0

($645.0)

$672.0

Net Income (Loss) Per Share

$0.34

($8.90)

$9.24

SG&A % of Net Sales

3.8%

3.6%

(0.2)

pts.

Interest Expense

$48.9

$52.3

$3.4

Depreciation / Amortization

$76.0

$92.8

$16.8

Other (Income) Expense, Net

($10.3)

$61.1

$71.4

* Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.

2007 Results
Fourth Quarter Restructuring/Special Items^*

(in millions)

Reported Results

2007 Total Company

$ 86.6

Reported Results Include the Following Items:

COGS

SG&A

Costs related to restructuring actions

$ 93.9

90.4

3.5

Costs related to merger transaction

(1.9)

2007 Core Operating Earnings

178.6

2006 Core Operating Earnings

161.1

Income Statement Category

Fourth Quarter

Income Before Interest,

Other (Income) Expense

and Income Taxes

* Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.

2007 Results
Fourth Quarter Net Sales Changes and Margin Impact

Net Sales

Margin

Performance Factor

Change

Impact

Comments

(in millions)

Industry Production /

Platform Mix / Net Pricing

$ (178)

Negative

Unfavorable platform mix, primarily in

North America

Global New Business

156

Positive

Primarily outside of North America (Saturn

Vue - seating, Nissan Qashqai - seating

and electrical, Hyundai Veracruz - seating

and electrical)

F/X Translation

246

Neutral

Euro up 12%, Canadian dollar up 16%

Acquisition / Divestiture

(646)

Positive

Divestiture of Interior business

Performance

Positive

Favorable operating performance in core

businesses, including benefits from

restructuring actions and efficiency actions

2007 Results – Seating Systems
Fourth Quarter and Full Year Performance^*

5.6%

7.0%

Full Year

* Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.

Fourth Quarter

6.7%

Q4 2006 Q4 2007

(in millions)

Sales

Earnings^**

Adj. Earnings^**

$2,903.2 $3,066.0

$ 181.0 $ 141.6

$ 194.9 $ 206.7

2006 2007

(in millions)

Sales

Earnings^**

Adj. Earnings^**

$11,624.8 $12,206.1

$ 604.0 $ 758.7

$ 645.7 $ 850.3

** Reported segment earnings represents income before interest, other expense and income taxes; adjusted earnings represents reported
segment earnings adjusted for restructuring costs and other special items.

Adjusted Seating Segment Margins

2007 Results – Electrical and Electronic
Fourth Quarter and Full Year Performance^*

Full Year

4.9%

3.6%

2.4%

2.7%

Q4 2006

Q4 2007

Fourth Quarter

* Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.

2006 2007

(in millions)

Sales

Earnings^**

Adj. Earnings^**

$ 739.3 $ 793.0

$ (5.1) $ (4.2)

$ 17.7 $ 21.1

(in millions)

Sales

Earnings^**

Adj. Earnings^**

$2,996.9 $3,100.0

$ 102.5 $ 40.8

$ 147.3 $ 111.0

** Reported segment earnings represents income (loss) before interest, other expense and income taxes; adjusted earnings represents
reported segment earnings adjusted for restructuring costs and other special items.

Adjusted Electrical and Electronic Segment Margins

2007 Results
Fourth Quarter and Full Year Free Cash Flow^*

*    Free cash flow represents net cash provided by operating activities ($157.4 million for the three months and $466.9 million for the twelve
     months ended 12/31/07) before net change in sold accounts receivable ($101.6 million for the three months and $168.9 million for the
     twelve months ended 12/31/07) (Cash from Operations), less capital expenditures.  Please see slides titled “Non-GAAP Financial
     Information” at the end of this presentation for further information.

Fourth

Quarter 2007

Full Year

2007

Net Income

$ 27.0

$ 241.5

Depreciation / Amortization

76.0

296.9

Working Capital / Other

156.0

97.4

Cash from Operations

$ 259.0

$ 635.8

Capital Expenditures

(88.1)

(202.2)

Free Cash Flow

$ 170.9

$ 433.6

(in millions)

2008 Outlook
Full-Year Production Assumptions^*

Full-Year

Change from

2008 Outlook

Prior Year

North American Production

Total Industry

~14.4 mil

down 4%

Domestic Three

~8.6 mil

down 9%

Lear’s Top 15 Platforms

~3.6 mil

down 12%

European Production

Total Industry

~20.1 mil

flat

Lear’s Top 5 Customers

~10.0 mil

down 2%

Euro

$1.45 / Euro

up 6%

* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.

2008 Outlook
Full-Year Financial Forecast^*

2008 Full-Year

Financial Forecast

Net Sales

˜ $15 billion

Core Operating Earnings

$660 to $700 million

Income before interest, other expense,

income taxes, restructuring

costs and other special items

Interest Expense

$185 to $195 million

Pretax Income

$430 to $470 million

before restructuring costs

and other special items

Estimated Tax Expense

˜ $135 million

Pretax Restructuring Costs

˜ $100 million

Capital Spending

$255 to $275 million

Depreciation and Amortization

˜ $300 million

Free Cash Flow

˜ $250 million or more

* Please see slides titled “Non-GAAP Financial Information” and “Forward-Looking Statements” at the end of this presentation for

further information.

** Subject to actual mix of earnings by country.

Sales Backlog Update^*

2008 – 2010 Sales Backlog^**

(in millions)

Composition of Sales Backlog^**

* For a definition of sales backlog and the underlying backlog development assumptions, please see slide titled “Forward-Looking
Statements” at the end of this presentation.

** Consolidated sales only.

2008 – 2010 Non-Consolidated Backlog ~$300M

By Product:

Seating -- $205M

Electrical and Electronic -- $435M

By Region:

North America -- $(290)M

Europe -- $550M

Asia -- $280M

South America -- $100M

By Customer Type:

Domestic -- $(450)M

European -- $660M

Asia / Asian OEM -- $430M

~ $640

~ $330

~ $60

~ $250

2010

2009

2008

2008-2010

Strategic Objectives /
Electrical and Electronic
Business Review

Strategic Objectives^*

#1 market position in North America, Europe, China and India

Well-diversified sales mix – balanced customer, market and
platform representation

Selectively increased vertical integration in key components

Technology/technical solution leader in all key areas of
seating development and manufacturing

* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.

Among top-tier wire harness suppliers globally

Diversified customer mix

Lowest-cost footprint

Technical expertise in high-voltage/low-voltage power distribution
architectures and system integration

Leadership Position in Seating

Achieve Critical Scale in Electrical Distribution

Grow Related Electronics

Leverage industry-leading junction box, wireless and related
electronic technology to substantially increase global sales

Electrical and Electronic
History and Business Profile

Sources: CSM Worldwide survey data / Lear estimates (based on independent suppliers)

Acquired from United Technologies in 1999

Present global sales of $3.1 billion

Electrical Distribution

$2.2 billion

Electronics

$0.9 billion

Electrical Distribution Systems

Business Profile

Electronic Products

Among leaders in wire harnesses:

#3 in North America

#4 in Europe

Proprietary terminals and connectors

Portfolio of hybrid electrical components

Leader in junction box technology

Niche player in electronic modules,
wireless products, premium audio/video
systems and tire pressure monitoring systems

Electrical and Electronic
Market Environment – Electrical Distribution

Highly competitive segment, presently
undergoing major restructuring and
consolidation

Global scale and low-cost footprint are
critical success factors

Market share and margin pressure as
top three wire harness suppliers expand
and defend their global positions

Leoni recently acquired Valeo’s wire
harness business

Electronic components business highly
fragmented and technology driven

Yazaki

Delphi

Sumitomo

Lear

Leoni

Top-Five Wire Harness
Suppliers

Source: CSM Worldwide survey

data and Lear estimates

Electrical and Electronic
Market Opportunity^*

External Factors

Power and signal distribution is a critical system in improving
vehicle functionality

Consumer demand for electronic content in vehicles is
continuing to increase

Emerging powertrain technologies (e.g., hybrid, fuel cell, etc.)
driving new high-content and high-voltage architectures

Lear Advantages

Existing customer relationships with all major automakers

Low-cost global footprint in electrical distribution

Technical capabilities in power and signal distribution

Expertise in overall system architecture and integration

Ability to adapt technologies into automotive applications

Solid Opportunity To Increase Shareholder Value

* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.

Electrical and Electronic
Lear’s Improvement Plan^*

Increase Global Scale

Sales backlog of $435 million through 2010; significant opportunity
for sales growth and diversification:

Pursue leadership position in wire harnesses

Scale industry-leading products globally (e.g., smart junction boxes)

Expand wireless products to Europe and Asia

Grow terminals and connectors

Participate in hybrid electrical growth

Continue rapid growth in Asia-Pacific region

Evaluate consolidation opportunities

Improve Cost Structure

Continue to expand low-cost engineering capabilities

Next low-cost phase is electronic components (3 new facilities in
2008 – Mexico, Eastern Europe and China)

Improved capacity utilization and cost absorption as new business
comes on-line

* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.

Electrical and Electronic
Business Assessment by Region^*

* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.

North America [return to positive]

Presently underperforming, reflecting several lost programs and
ongoing transition of electronic components to low-cost countries

Sales backlog of $280 million coming on-line with further opportunity

Restructuring savings to increase in 2008 and beyond

Increased sourcing of low-cost components and engineering

Modest U.S. industry recovery

Europe [margin improves]

Sales backlog of $125 million coming on-line

Additional growth opportunities

Further improvement of low-cost footprint

Asia [profitable growth]

Continued solid performance, led by growth in China

Further leverage low-cost Asian footprint

Electrical and Electronic
Outlook for Business^*

Significant new business coming on-line

Competitive low-cost footprint globally

Improved customer and geographic representation

Increased scale in electrical distribution, smart junction
boxes, wireless products and other electronic
components

Strong, complementary business to seating

Focus On Profitable Growth

* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.

Business Assessment
and Outlook

Business Assessment

Lear has implemented a number of significant actions to
reposition its business for future success and improved
shareholder value

Despite challenging business conditions, we are continuing
to improve our financial results and strengthen our balance
sheet

We are continuing to diversify our global sales – last year,
55% of our revenue was generated outside of North America

Priority focus on delivering superior quality and customer
service continues

Seating business is performing well; actions are being
implemented to improve the Electrical and Electronic
business

Net Sales*

Excludes Interior business:

- 2005 -- $3.1 billion

- 2006 -- $3.2 billion

- 2007 -- $0.7 billion

(in billions)

$14.0

$14.6

$15.3

2005

2006

2007

$749

$558

$401

2005

2006

2007

(in millions)

Core Operating Earnings*

Since 2005, Lear Has . . .
Improved Net Sales And Core Operating Earnings^**

* Excludes Interior business:

- 2005 -- $(77) million

- 2006 -- $(161) million

- 2007 -- $16 million

** Core operating earnings represents income before interest, other expense, income taxes, restructuring costs and other special items, excluding the

divested Interior business. Pretax income (loss) was ($1,187.2) million, ($655.5) million and $331.4 million in 2005, 2006 and 2007, respectively.
Please see slides titled “Non-GAAP Financial Information” and “Forward-Looking Statements” at the end of this presentation for further information.

Restored Free Cash Flow and
Strengthened Our Balance Sheet^*

Net Debt**

(in billions)

Cash Balance

(in millions)

$434

$116

($419)

$601

$503

$197

12/31/2005

12/31/2006

12/31/2007

$406

$256

$104

12/31/2005

12/31/2006

12/31/2007

$2.5

$2.3

$2.0

12/31/2007

12/31/2006

12/31/2005

ABS and Factoring Balances

(in millions)

* Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.

**   Net debt represents total debt plus utilization under the Company’s securitization and factoring facilities, less cash and cash equivalents.  Total reported debt was
      $2,275.9 million, $2,499.4 million and $2,454.6 million as of December 31, 2005, 2006 and 2007, respectively.  Free cash flow represents net cash provided by
      operating activities before the net change in sold accounts receivable, less capital expenditures.  Net cash provided by operating activities was $560.8, $285.3 million
      and $466.9 million for the years ended December 31, 2005, 2006 and 2007, respectively.

2005

2006

2007

Free Cash Flow**

(in millions)

North America

45%

Europe

43%

Rest of World

12%

Europe

36%

North America

55%

Geographic

Continuing To Diversify Our Sales Mix

Classic Ford & GM
47%

All Other
53%

Saab, Volvo,

Jaguar and Land Rover

Classic Ford & GM

42%

Customer

2006

2007

Rest of World

Chrysler 6%

BMW

Fiat

PSA

Daimler

Hyundai

Mazda

Nissan

Toyota

Renault

Porsche

All Other

Summary and Outlook^*

2007 represents second consecutive year of financial improvement:

Net sales in core business of $15.3 billion, up 5%

Core operating earnings of $749 million, up 34%

Free cash flow of $434 million – best since 2003

No significant near-term debt maturities

Business structure improvements being aggressively implemented to
improve long-term competitiveness:

Divested Interior business; retained minority interest

Aggressive actions to improve cost structure since 2005

Expanding in Asia-Pacific and growing Asian sales globally

Implementing actions to profitably grow our Electrical and Electronic
business

2008 outlook solid, despite sharply lower N.A. production

Longer-term financial outlook continues to be positive

^* Please see slides titled “Non-GAAP Financial Information” and “Forward-Looking Statements” at the end of this presentation for further
information.

ADVANCE RELENTLESSLY^™

www.lear.com

LEA

NYSE

Listed

In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”) included throughout this
presentation, the Company has provided information regarding “income before interest, other (income) expense and income taxes,” “income before
interest, other (income) expense, income taxes, restructuring costs and other special items, excluding the divested Interior business” (core operating
earnings), “pretax income before restructuring costs and other special items,”  “free cash flow” and “net debt” (each, a non-GAAP financial measure).
Other (income) expense includes, among other things, state and local non-income taxes, foreign exchange gains and losses, fees associated with the
Company’s asset-backed securitization and factoring facilities, minority interests in consolidated subsidiaries, equity in net income of affiliates and gains
and losses on the sale of assets. Free cash flow represents net cash provided by operating activities before the net change in sold accounts receivable,
less capital expenditures.  The Company believes it is appropriate to exclude the net change in sold accounts receivable in the calculation of free cash
flow since the sale of receivables may be viewed as a substitute for borrowing activity.  Net debt represents total debt plus utilization under the Company’s
securitization and factoring facilities, less cash and cash equivalents.

Management believes the non-GAAP financial measures used in this presentation are useful to both management and investors in their analysis of the
Company’s financial position and results of operations.  In particular, management believes that income before interest, other (income) expense and
income taxes, core operating earnings and pretax income before restructuring costs and other special items are useful measures in assessing the
Company’s financial performance by excluding certain items (including those items that are included in other expense) that are not indicative of the
Company's core operating earnings or that may obscure trends useful in evaluating the Company’s continuing operating activities.  Management also
believes that these measures are useful to both management and investors in their analysis of the Company's results of operations and provide improved
comparability between fiscal periods.  Management believes that free cash flow is useful to both management and investors in their analysis of the
Company’s ability to service and repay its debt.  Management believes that net debt provides useful information regarding the Company’s financial
condition.  Further, management uses these non-GAAP financial measures for planning and forecasting in future periods.

Income before interest, other (income) expense and income taxes, core operating earnings, pretax income before restructuring costs and other special
items, free cash flow and net debt should not be considered in isolation or as a substitute for pretax income (loss), net income (loss), cash provided by
operating activities, total debt or other balance sheet, income statement or cash flow statement data prepared in accordance with GAAP or as a measure
of profitability or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt and therefore, does not reflect funds
available for investment or other discretionary uses. Also, these non-GAAP financial measures, as determined and presented by the Company, may not
be comparable to related or similarly titled measures reported by other companies.

Set forth on the following slides are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated
and presented in accordance with GAAP. Given the inherent uncertainty regarding special items, other (income) expense and the net change in sold
accounts receivable in any future period, a reconciliation of forward-looking financial measures to the most directly comparable financial measures
calculated and presented in accordance with GAAP is not feasible. The magnitude of these items, however, may be significant.

Non-GAAP Financial Information

Non-GAAP Financial Information
Core Operating Earnings

Three Months Ended

Full Year

(in millions)

Q4 2007

Q4 2006

2007

2006

2005

Pretax income (loss)

$ 45.1

$ (635.9)

$ 331.4

$ (655.5)

$ (1,187.2)

Divestiture of Interior business

2.9

607.3

10.7

636.0

Interest expense

48.9

52.3

199.2

209.8

183.2

Other (income) expense, net *

(10.3)

61.1

32.5

87.8

96.6

Income (loss) before interest, other (income)

expense and income taxes

$ 86.6

$ 84.8

$ 573.8

$ 278.1

$ (907.4)

Costs related to divestiture (COS and SG&A)

10.0

Costs related to restructuring actions

93.9

44.0

181.8

105.6

106.3

Costs related to merger transaction

(1.9)

34.9

U.S. salaried plan curtailment gain

(36.4)

Goodwill and fixed asset impairment charges

0.8

12.9

1,095.1

Litigation charges

30.5

Income before interest, other (income)

expense, income taxes, restructuring costs

and other special items

178.6

129.6

764.1

396.6

324.5

Less: Interior business

31.5

(15.6)

161.2

76.5

Income before interest, other (income) expense,

income taxes, restructuring costs and other

special items, excluding the divested

Interior business

$ 178.6

$ 161.1

$ 748.5

$ 557.8

$ 401.0

(core operating earnings)

* Includes minority interests in consolidated subsidiaries and equity in net income of affiliates.

Non-GAAP Financial Information
Segment Earnings Reconciliation

Three Months

Full Year

(in millions)

Q4 2007

Q4 2006

2007

2006

Seating

$ 141.6

$ 181.0

$ 758.7

$ 604.0

Electrical and electronic

(4.2)

(5.1)

40.8

102.5

Interior

(34.2)

8.2

(183.8)

Segment earnings

137.4

141.7

807.7

522.7

Corporate and geographic

headquarters and elimination of

intercompany activity

(50.8)

(56.9)

(233.9)

(241.7)

Income before goodwill impairment

charges, interest, other (income)

expense and income taxes

$ 86.6

$ 84.8

$ 573.8

$ 281.0

Goodwill impairment charges

2.9

Divestiture of Interior business

2.9

607.3

10.7

636.0

Interest expense

48.9

52.3

199.2

209.8

Other (income) expense, net

(10.3)

61.1

32.5

87.8

Pretax income (loss)

$ 45.1

$ (635.9)

$ 331.4

$ (655.5)

Non-GAAP Financial Information
Adjusted Segment Earnings

Three Months Q4 2007

Three Months Q4 2006

Electrical and

(in millions)

Seating

Electronic

Seating

Electronic

Sales

3,066.0

793.0

2,903.2

739.3

Segment earnings

141.6

(4.2)

181.0

(5.1)

Costs related to restructuring actions

65.1

25.3

13.9

22.8

Adjusted segment earnings

206.7

21.1

194.9

17.7

Full Year 2007

Full Year 2006

Electrical and

Seating

Electronic

Seating

Electronic

Sales

12,206.1

3,100.0

11,624.8

2,996.9

Segment earnings

758.7

40.8

604.0

102.5

Costs related to restructuring actions

91.6

70.2

41.7

44.8

Litigation charges

Adjusted segment earnings

850.3

111.0

645.7

147.3

Non-GAAP Financial Information
Cash from Operations and Free Cash Flow

Three Months

(in millions)

Q4 2007

Full Year 2007

Full Year 2006

Full Year 2005

Net cash provided by operating activities

157.4

466.9

285.3

560.8

Net change in sold accounts receivable

101.6

168.9

178.0

(411.1)

Net cash provided by operating activities

before net change in sold accounts

receivable

(cash from operations)

259.0

635.8

463.3

149.7

Capital expenditures

(88.1)

(202.2)

(347.6)

(568.4)

Free cash flow

170.9

433.6

115.7

(418.7)

Non-GAAP Financial Information
Net Debt

December 31,

(in millions)

2007

2006

2005

Short-term borrowings

13.9

39.3

23.4

Current portion of long-term debt

96.1

25.6

9.4

Long-term debt

2,344.6

2,434.5

2,243.1

Total debt

2,454.6

2,499.4

2,275.9

Utilization under ABS and A/R factoring facilities

103.5

256.3

406.2

Cash and cash equivalents

(601.3)

(502.7)

(197.3)

Net debt

1,956.8

2,253.0

2,484.8

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated financial results and liquidity.  Actual results may differ materially from anticipated results
as a result of certain risks and uncertainties, including but not limited to, general economic conditions in the markets in which the
Company operates, including changes in interest rates or currency exchange rates, the financial condition of the Company’s
customers or suppliers, fluctuations in the production of vehicles for which the Company is a supplier, changes in the Company’s
current vehicle production estimates, the loss of business with respect to, or the lack of commercial success of, a vehicle model for
which the Company is a significant supplier, disruptions in the relationships with the Company’s suppliers, labor disputes involving
the Company or its significant customers or suppliers or that otherwise affect the Company, the Company’s ability to achieve cost
reductions that offset or exceed customer-mandated selling price reductions, the outcome of customer productivity negotiations, the
impact and timing of program launch costs, the costs, timing and success of restructuring actions, increases in the Company’s
warranty or product liability costs, risks associated with conducting business in foreign countries, competitive conditions impacting the
Company’s key customers and suppliers, the cost and availability of raw materials and energy, the Company’s ability to mitigate any
increases in raw material, energy and commodity costs, the outcome of legal or regulatory proceedings to which the Company is or
may become a party, unanticipated changes in cash flow, including the Company’s ability to align its vendor payment terms with
those of its customers and other risks described from time to time in the Company’s Securities and Exchange Commission filings.  In
particular, the Company’s financial outlook for 2008 is based on several factors, including the Company’s current vehicle production
and raw material pricing assumptions.  The Company’s actual financial results could differ materially as a result of significant
changes in these factors.

This presentation also contains information on the Company’s sales backlog.  The Company’s incremental sales backlog reflects:
anticipated net sales from formally awarded new programs and open replacement programs, less phased-out and cancelled
programs.  The calculation of backlog does not reflect customer price reductions on existing or newly awarded programs.  The
backlog may be impacted by various assumptions embedded in the calculation, including vehicle production levels on new and
replacement programs, foreign exchange rates and the timing of major program launches.  Lear’s 2008 – 2010 sales backlog is
based on an exchange rate of $1.45/per Euro and the following industry production assumptions: in North America, 14.4 million units
in 2008 and 15 million thereafter and in Europe, 20.1 million units in 2008 and 20 million thereafter.

The forward-looking statements in this presentation are made as of the date hereof, and the Company does not assume any
obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof.