Lear has posted a highly positive set of financial results for the second quarter, helped by higher volumes in automotive seating and electrical products as order schedules climbed in key markets.
The company said that second quarter sales of $4.6bn were up 11% from a year ago. It also posted record adjusted net income of $174m, up 26%. Record core operating earnings of $275 million, were up 23%.
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Lear said that it posted record seating sales, up 12%, and earnings on that business up 10%, in the second quarter.
“In the second quarter, we continued our positive momentum with record financial results,” said Matt Simoncini, Lear’s president and chief executive officer.
“Our record performance in the quarter reflects the investments that we have made in improving our cost structure and expanding our component capabilities globally. We are well positioned to take advantage of industry trends toward global vehicle platforms, direct component sourcing and increasing electrical content.”
Lear said it has increased its full year 2014 financial outlook for sales, core operating earnings and free cash flow.
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By GlobalData“Our 2014 financial outlook is based on industry vehicle production assumptions of 20.4 million units in Europe & Africa, up 2% from the prior outlook, 17.0 million units in North America, up 1% from the prior outlook, and 21.2 million units in China, in-line with the prior outlook. Lear’s financial guidance is based on an average full year exchange rate of $1.37/Euro.”
The company said sales in 2014 are expected to be in the range of $17.6 to $17.9 billion, up from the prior range of $17.2 to $17.7 billion. Core operating earnings are expected to be in the range of $975 to $1,025 million, up from the prior range of $935 to $985 million. Free cash flow is expected to be in the range of $400 to $450 million, up $25 million from the prior outlook.
