Southfield, MI, January 25, 2006--Lear Corp., reported a steep fourth-quarter loss as the automotive components maker racked up more than $400 million of impairment and restructuring charges.
The company--which designs products such as seats and door panels for cars and trucks--reported a loss $596.6 million, or $8.88 per share, during the quarter. Restructuring and impairment charges for the period totaled $423.7 million, and the company also recorded a tax provision of nearly $300 million related to deferred tax assets. Last year, Lear reported a profit of $123 million, or $1.70 per share.
"As we work to restore our margins and profitability to historical levels, we are keeping our focus on the core values that have served Lear well over the years," said chairman and CEO Bob Rossiter in a statement. "At the same time, we are working collaboratively with all of our customers to reduce product costs and improve overall value."
Lear has been restructuring its business amid a slump in the U.S. auto industry, where many of its biggest clients continue to experience deep financial difficulties. The company incurred $351.3 million of goodwill write-downs and fixed asset impairment charges at its interior business. Meanwhile, other restructuring actions cost $42.6 million during the quarter.
Excluding restructuring and other special charges, the company reported a loss of $83.6 million before taxes, compared to a profit of $159.5 million a year earlier.
For the full year 2005, Lear posted a loss of $1.38 billion, or $20.48 per share, on sales of $17.1 billion. Excluding charges, the company reported a profit of $102.6 million.
