Lear (NYSE:LEA) said Monday it nearly doubled its share buyback program, from $800 million to $1.5 billion, and plans to utilize a notes offering and new credit facility to increase liquidity by $1 billion.
Lear also reaffirmed its guidance for 2013, saying it anticipates sales of $15 billion to $15.5 billion and operating earnings of $725 million to $775 million. The company expects 2012 sales to total about $14.5 billion.
The auto-parts maker will sign a $1 billion revolving line of credit, replacing its current $500 million facility.
“The actions that we are announcing today further improve our capital structure, increase our financial flexibility and allow us to continue to invest in growing and strengthening our business,” Matt Simoncini, Lear's president and chief executive, said in a statement. “We also are significantly increasing our share repurchase program at a time when we believe our shares are undervalued.”
Shares of the Southfield, Mich.-based company were up 16 cents to $48.17 in pre-market trading Monday.