DETROIT -- Lear Corp. posted a 10 percent increase in profit for the second quarter from growth in seating revenue and higher margins.
The seating and electronics supplier reported net income in the three months ended July 1 of $311.9 million. Revenue also increased 10 percent, to $5.1 billion, when excluding the impact of foreign exchange rates.
Lear upped its full-year sales forecast by $500 million to $20 billion. The improved outlook comes from expected gains in most major currencies compared to the U.S. dollar and sales generated from its acquisition of Grupo Antolin's seating business.
Seating sales increased to $4 billion from $3.6 billion, while electrical system sales were unchanged from $1.1 billion a year earlier.
Core operating margins increased to 8.6 percent, up from 8.4 percent, beating analyst expectations of 8.5 percent.
The company posted a decrease in total units sold in its top three regions. Sales in Europe and Africa sold 5.9 million units, down 3 percent from a year earlier. Units sold in China dropped 1 percent to 5.7 million, while in the U.S., units sold dropped to 4.5 million, a 3 percent change.
But revenue increased in all markets -- North America rose 4 percent and Europe and Africa climbed 6 percent while Asia advanced 19 percent and South America surged 54 percent. That's due to an increase in profit margins and growth in advanced seating technologies, Lear said in a Wednesday morning earnings call with shareholders.