Lear Corp. on Monday reported an increase in first quarter net income, and said it also expects earnings to rise in the second quarter.
The Southfield, Mich., supplier's first quarter net income of $46.4 million was more than three times the $14.5 million earned in the year-ago period.
Sales for the quarter remained stable at $3.5 billion. The net income increase was due to a reduction in interest payments, a change in accounting practices, an increase in Big 3 production in North America and new business, the supplier said. The Big 3 accounts for more than 70 percent of Lear sales.
Lear said it expects to have second-quarter earnings per share of $1.05 to $1.15, barring any one-time items. That translates into earnings of $69.6 million to $76.2 million. That would be up from second quarter last year, when Lear's earnings per share were 74 cents. That resulted in a net income of $48.5 million, excluding one-time charges.
Lear had $7.9 billion in 2001 North American OEM auto parts sales. It ranks No. 4 on the Automotive News list of Top 150 OEM parts suppliers to North America.