Lear's Q2 profits drop 18% on weak Europe
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DETROIT (Reuters) -- Lear Corp.'s second-quarter earnings fell 18 percent because of "challenging" business conditions in Europe, the supplier of seats and electric power management systems said today.
Lear, in a statement today, reported net income of $145.4 million, or earnings of $1.45 per diluted share, compared with $177.5 million, or $1.65 earnings per diluted share a year ago. Net sales were essentially flat at $3.665 billion for the quarter from $3.676 billion a year earlier.
Excluding one-time items, Lear's earnings per share of $1.35 beat the $1.28 per-share forecast of analysts surveyed by Thomson Reuters I/B/E/S.
"Lear performed well in the second quarter, despite challenging industry conditions in Europe," said Lear CEO Matt Simoncini.
Lear's acquisition of Guilford Mills, maker of automotive and specialty fabrics, was completed in late May. The purchase price was $257 million. Simoncini said the integration of the former North Carolina-based Guilford Mills is "well under way."
Lear forecast its full-year revenue at between $13.9 billion and $14.4 billion, from a forecast of $13.85 billion to $14.35 billion given in May when it reported first-quarter earnings.
Sales in Lear's seating business fell 2 percent to $2.8 billion in the second quarter while sales in its electric power management systems business rose 7 percent to $872 million.
The 2012 full-year forecast assumes industry vehicle production of 16.7 million vehicles in Europe, down 2 percent from its previous guidance, and production of 14.9 million vehicles in North America, a 4 percent gain from the company's previous guidance.
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