Lear posts 21% gain in Q3 net, sustains profits in Europe
Simoncini: "Solidly profitable" in Europe
DETROIT – Auto-parts maker Lear Corp. posted a 21 percent gain in third-quarter net income and boosted its forecast for full-year earnings while remaining profitable in the depressed European market.
Lear's net income was $121.4 million in the July-September period, up from $100.7 million a year earlier, the company said in a statement today.
Lear said global production of vehicles rose 2 percent in the quarter. Output in North America increased 14 percent and China was up 7 percent. Europe production fell 7 percent.
"Despite a challenging operating environment in Europe, we remained solidly profitable in that region," said CEO Matt Simoncini in the statement. "We continue to win new business globally and strengthen our capabilities in emerging markets."
Lear doesn't provide profit figures by region, spokesman Mel Stephens said. He said Europe accounted for $1.18 billion, or about a third, of the supplier's $3.54 billion in global sales. Sales rose 2 percent for the quarter.
In August, Lear attributed an 18 percent decline in second-quarter earnings to "challenging" business conditions in Europe.
Lear, based in suburban Detroit, said it expects full-year adjusted income to be between $520 million and $560 million, up from a previous forecast of $510 million to $540 million, primarily because of lower expected tax expense. In the quarter, Lear repurchased 1.3 million shares of its common stock for $50 million.
Reuters and Vince Bond contributed to this report.Contact Automotive News