US: Lear Q3 operating profit up 35%
Lear Corporation, supplier of automotive seating and electrical power management systems, has reported financial results for the third quarter of 2010 and increased its 2010 full year outlook. Highlights include:
- Third quarter net sales of US$2.8bn, up 11% from a year ago
- Third quarter core operating earnings of $150m, up 35% from a year ago and the fifth consecutive quarter of year-over-year improvement
- Adjusted earnings per share of $2.28 in the third quarter and $6.44 year-to-date
- Third quarter free cash flow of $79m
- Quarter-end cash balance of $1.5bn; total debt of $699m
- Corporate credit ratings upgraded by S&P and Moody's
- Full year outlook for sales, core operating earnings and free cash flow increased:
- Sales up $700m to $11.7bn
- Core operating earnings up $100m to $550 to $600m
- Free cash flow up $100m to approximately $350m
In the third quarter, global industry production improved 13% from a year ago, reflecting primarily industry recovery in North America and continued growth in emerging markets.
"Global industry demand continues to improve, but production levels in the mature markets remain significantly below historical levels. In this environment, we are able to achieve improving operating results and positive cash flow because of the significant structural cost reductions we have implemented over the past few years. Going forward, we intend to hold the line on costs and continue to focus on growing our worldwide sales," said president and CEO Bob Rossiter.
Lear now expects 2010 net sales of approximately $11.7bn, up $700m from the prior outlook, and 2010 core operating earnings of $550m to $600m, up $100m from the prior outlook.