FORM 8-K
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): October 15, 2008
LEAR CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware
(State or other jurisdiction of incorporation)
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1-11311
(Commission File Number)
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13-3386776
(IRS Employer Identification Number) |
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21557 Telegraph Road, Southfield, MI
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48033 |
(Address of principal executive offices)
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(Zip Code) |
(248) 447-1500
(Registrants 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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TABLE OF CONTENTS
Section 8 Other Events
Item 8.01 Other Events.
On October 15, 2008, Lear Corporation issued a press release announcing certain actions that it
will take to reduce costs and improve operating performance. A copy of the press release is
attached hereto as Exhibit 99.1 and incorporated by reference herein.
The information contained in Exhibit 99.1 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.
Section 9 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits
(d) Exhibits:
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Exhibit Number |
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Exhibit Description |
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99.1
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Press release dated October 15, 2008 |
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.
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Lear Corporation
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Date: October 15, 2008 |
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/s/ Matthew J. Simoncini
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Name: |
Matthew J. Simoncini |
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Title: |
Senior Vice President and
Chief Financial Officer |
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EXHIBIT INDEX
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Exhibit Number |
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Exhibit Description |
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99.1
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Press release dated October 15, 2008 |
EX-99.1
Exhibit 99.1
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FOR IMMEDIATE RELEASE |
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Lear Contact: |
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Mel Stephens |
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(248) 447-1624 |
Lear Announces Aggressive Cost Reduction Actions
Targeting $150 Million in Operating
Improvements
SOUTHFIELD, Mich., October 15, 2008 Lear Corporation [NYSE: LEA], a leading global
supplier of automotive seating systems, electrical distribution systems and electronics products,
today announced aggressive cost reduction actions targeting an additional $150 million of
improvement in operating performance over the next twelve months.
In light of current market conditions, the Company is implementing comprehensive actions to
further reduce structural costs and improve operating results. Additional details of the $150
million operating improvement plan will be provided as part of the Companys third quarter earnings
conference call on October 30th. Refer to Forward-Looking Statements for additional
information.
Major new actions under the profit improvement plan include the following:
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Reducing program development costs, consistent with the significantly lower
production outlook |
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Acceleration of low-cost engineering and sourcing initiatives |
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More targeted investments in growth initiatives, focused on high priority
programs |
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Further reductions in procurement, manufacturing, engineering and logistics
costs to reflect present business conditions |
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Further census reductions, temporary layoffs and additional thrifting of
personnel-related costs |
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Re-timing and selective reductions in restructuring spending |
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Aggressive working capital management and capital spending efficiencies |
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Supply base consolidation and other commercial actions |
We have been very aggressive in reducing our costs as industry production has declined, and
we intend to remain well ahead of the curve, commented Bob Rossiter, Lear Chairman, Chief
Executive Officer and President. We have faced challenging conditions before, and each time we
have emerged as an even
(more)
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stronger Company. I fully expect the Company to overcome the present challenges as an even
more formidable competitor.
Rossiter continued, Managements strategy is to take all actions necessary to withstand the
current industry downturn, maintain our focus on strategic priorities and position the Company for
success when industry conditions improve. Longer term, we see global growth in automotive demand,
with mature markets expected to recover in 2010 and emerging markets continuing to expand. With
our global capabilities, low-cost footprint, superior quality and leading technologies, we are well
positioned for success in the future.
In addition, the Company announced that it has drawn $400 million under its revolving credit
facility to protect against possible short-term disruptions in the credit markets.
The profit improvement plan outlined in this release is designed to restore the Company to a
level of profitability necessary to preserve our financial flexibility going forward, said Matt
Simoncini, Lear Senior Vice President and Chief Financial Officer. Given the recent volatility in
the financial markets, we believe it is also prudent to temporarily increase our cash on hand by
borrowing under our revolving credit facility.
At the end of the third quarter Lear had in excess of $500 million in cash. After this
revolver borrowing, the Company will have more than $800 million in availability remaining under
its revolving credit facility and continues to expect positive free cash flow for 2008.
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 Companys customers or suppliers, changes in actual industry
vehicle production levels from the Companys current estimates, fluctuations in the production of
vehicles for which the Company is a supplier, 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, including
further declines in sales of full-size pickup trucks and large sport utility vehicles, disruptions
in the relationships with the Companys suppliers, labor disputes involving the Company or its
significant customers or suppliers or that otherwise affect the Company, the Companys ability to
achieve cost reductions that offset or exceed customer-mandated selling price reductions, the
outcome of customer negotiations, the impact and timing of program launch costs, the costs, timing
and success of
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restructuring actions, increases in the Companys warranty or product liability costs, risks
associated with conducting business in foreign countries, competitive conditions impacting the
Companys key customers and suppliers, the cost and availability of raw materials and energy, the
Companys ability to mitigate 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 Companys ability to align its vendor payment terms with those
of its customers, the Companys ability to access capital markets on commercially reasonable terms
and other risks described from time to time in the Companys Securities and Exchange Commission
filings. In particular, the Companys financial outlook is based on several factors, including the
Companys current industry vehicle production and commodity pricing assumptions. The operating
improvement plan described in this release does not represent a forecast of future operating
results. Future operating results will be based on various factors, including actual industry
production volumes, commodity prices and the Companys success in implementing its operating
improvement plan.
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 worlds leading suppliers of automotive seating systems,
electrical distribution systems and electronics products. The Companys world-class products are
designed, engineered and manufactured by a diverse team of 91,000 employees at 215 facilities in 35
countries. Lears 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.
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