Lear Corp.’s bottom line turned red in the second quarter, hurt by sizeable restructuring costs and litigation and impairment charges, Dow Jones Newswires reported.
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The automotive interior systems supplier projected another loss for the third quarter, along with flat year-over-year sales.
The company on Friday posted a loss of $US44.4 million, or 66 cents a share, for the quarter ended July 2, compared with net income of $116.1 million, or $1.58 a share, a year ago.
The latest period included restructuring costs, litigation charges, an impairment that altogether totalled 98 cents a share, Dow Jones said.
Last month, Lear, responding to a slowdown in the US auto market, said it was evaluating plans to close manufacturing facilities and shed staff as part of a global restructuring plan that could result in a pretax charge of up to $250 million, the report noted. The maker of car interiors said the initial phase of the restructuring would affect five plants in North America and Europe. Under the plan, the company could cut up to 7,700 jobs globally.
Sales for the second quarter rose 3.2% to $4.42 billion from $4.28 billion a year ago, reflecting the addition of new business globally, partially offset by lower production on key Lear platforms in North America, Dow Jones said.
