Lear Reports Record Strong Fourth-Quarter, Full-Year Net Sales.

For the fourth quarter of 2002, Lear posted net sales of $3.8 billion, operating income of $246.8 million and net income of $118.0 million, or $1.76 per share. For the fourth quarter of 2001, Lear reported net sales of $3.4 billion, operating income of $68.6 million and net loss of $48.8 million, or $0.76 per share.

Excluding non-recurring items and goodwill amortization for the fourth quarter of 2001, Lear had adjusted operating income of $217.8 million and adjusted net income of $97.8 million, or $1.49 per share.

For the full year, Lear posted record net sales of $14.4 billion, up 6 percent from 2001, reflecting higher vehicle production in North America and the addition of new business globally, partially offset by lower production levels in Western Europe and South America. Reported operating income for 2002 was $743.1 million, and net income was $13.0 million, or $0.19 per share. Excluding the cumulative effect of a change in accounting for goodwill, net income was $311.5 million, or $4.65 per share.

Compared with 2001, adjusted operating income rose $63.2 million. Adjusted earnings per share were up $0.92, or 25 percent, reflecting higher sales, operating efficiencies and lower interest expense.

For the first quarter of 2003, Lear estimates net sales will be up 6 percent to 8 percent from the year-earlier period, reflecting the addition of new business and a stronger Euro. Higher industry production in North America is expected to offset lower industry production and unfavorable mix in Western Europe, the company said.

For the full year, Lear estimates net sales to be approximately $15 billion, compared with $14.4 billion in 2002. The increase primarily reflects the addition of new business globally and a stronger Euro, partially offset by lower vehicle production in North America (16.0 million units versus 16.4 million units); Western Europe is expected to be essentially flat at around 16 million units, Lear said. Given this industry outlook and our lowered tax rate, we expect earnings in the range of $5.20 to $5.40 per share. Full year capital spending is forecast at approximately $300 million.