Back to top

Analyst Blog

Lear Corp. (LEA - Snapshot Report) declared the pricing of senior unsecured notes worth $500 million due in Jan 15, 2023 with a coupon of 4.75%. The sale of the notes is expected to close on Jan 17, 2013, subject to customary closing conditions.

The offering will be made to qualified institutional buyers in the U.S. according to Rule 144A under the Securities Act of 1933. Outside the U.S. the offerings will be made in accordance with Regulation S of the Securities Act of 1933.

The proceeds from this offering together with other liquidity sources of the company will be utilized to purchase $70 million worth of existing notes in 2013 together with investments in additional component capabilities and emerging markets. It will also be used for share repurchase under the common stock share repurchase program and for general corporate purposes.

Standard & Poor's Ratings Services has raised its corporate credit rating on Lear to 'BB+' from 'BB' and assigned 'BB' rating to Lear’s proposed $500 million senior unsecured debt offering. The rating agency also assigned 'BBB' and '1' recovery rating on the company's senior secured revolving credit facility. The rating service has a stable outlook based on the improved free cash flow of the company.

Lear posted a 19% increase in adjusted earnings per share to $1.29 in the third quarter of 2012 from $1.23 earned in the corresponding quarter last year. The profits surpassed the Zacks Consensus Estimate by 9 cents per share. In absolute terms, profits improved 11.3% to $127.2 million compared with $114.3 million in the year-ago quarter.

Revenues increased by 2% to $3.5 billion in the reported quarter, due to 2% increase in global industry production, partially offset by depressing business condition in Europe. Production in Europe declined 7% during the quarter.

Lear Corporation designs, manufactures, assembles, and supplies automotive seat systems, electrical distribution systems, and related components primarily to automotive original equipment manufacturers. The company sells its products chiefly in North America, South America, Europe, and Asia.

The company competes with Johnson Controls Inc. (JCI - Analyst Report). Currently, it retains a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%