Lear Profit Jumps 69%, Raises Full-Year Outlook
27 April 2016 - 10:30PM
Dow Jones News
Lear Corp. reported a 69% jump in its first-quarter profit and
lifted its full-year outlook as the rise in global vehicle
production increases demand for its automotive seats and sales of
sport-utility vehicles in the U.S. continues to drive orders for
its higher-end seating products.
The Southfield, Mich.-based company has been on a tear as auto
makers concentrate on improving the interior spaces of their
vehicles to not only compete, but meet changing demands as
consumers consider comfort in addition to the exterior design when
buying a vehicle.
Meanwhile, global auto sales are expected to increase 2.7% this
year to 89.8 million vehicles.
The company said core operating earnings for the year are now
expected to be in the range of $1.4 billion to $1.45 billion, a $50
million increase over the prior forecast. Free cash flow is also
expected to be $50 million higher at $850 million.
For the quarter, profit rose to $248 million, or $3.29 a share,
compared with $147.5 million, or $1.86 a share, for the same period
a year earlier.
Revenue jumped 4% to $4.7 billion. The company's seating segment
generated $3.6 billion in sales, which was a 3% increase over the
same period a year earlier. The electrical division reported a 2%
increase in sales to $1.1 billion. Stripping out currency and
commodity prices, sales would have jumped 8% for both
divisions.
Write to Jeff Bennett at jeff.bennett@wsj.com
(END) Dow Jones Newswires
April 27, 2016 08:15 ET (12:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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