Lear has unveiled second-quarter net income up 10% to US$312m with sales rising 8% to US$5.1bn.
“In the second quarter, we continued to grow our sales faster than industry production, improve our operating margins in both segments and achieve record overall financial results,” said Lear president and CEO, Matt Simoncini.
“Accordingly, we are increasing our full year outlook for sales, earnings and free cash flow. With our product capabilities, cost structure and record backlog, we are well positioned to continue to gain market share and grow our earnings.”
Full Year 2017 Financial Outlook:
Lear is increasing its full year 2017 financial outlook for sales, earnings and free cash flow based on first-half performance, the addition of Grupo Antolin’s seating business and the outlook for the remainder of the year.
That outlook is based on a global industry production assumption of 93.1m vehicles, up 2% from 2016. On a regional basis, vehicle production is forecasted to be 17.4m units in North America, down 2%, 22.9m in Europe and Africa, up 3% and 26m units in China, up 1%.
Sales in 2017 are expected to be around US$20bn and core operating earnings are thought to be about US$1.65bn.
Capital spending is expected to be US$560m, up US$10m from the prior outlook primarily reflecting the addition of Grupo Antolin.