Lear Corporation has posted first quarter net sales of US$3.6bn with core operating earnings of US$195m, down from US$3.5bn and US$205m, a year ago.
Global industry production increased 6% from a year ago, reflecting increases of 16% in North America and 49% in Japan, partially offset by production declines of 6% in Europe and 2% in China.
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North America and Japan volumes, led by the Japanese automakers, were favourably impacted by an increase in vehicle production.
“Lear had another quarter of strong operating performance,” said Lear CEO president and CEO, Matt Simoncini.
“We are continuing to increase our investments in component capabilities, which will improve our long-term competitiveness and facilitate growth. In addition, we are excited about our recently announced acquisition of Guilford Mills and we plan to continue to pursue additional acquisitions to further strengthen our core businesses.”
The first quarter results compared with net sales of US$3.5bn pre-tax income before equity income of US$199m, including restructuring costs and other special items of US$2m, core operating earnings of US$205m and diluted net income per share of US$1.44 in the first quarter of 2011.
In the seating segment, net sales were up 3% to US$2.8bn, primarily driven by the addition of new business. Operating earnings, excluding restructuring costs and other special items, were US$189m, for a margin of 6.7%.
Earnings in this business segment decreased from last year driven primarily by increased product and facility launch costs and higher product development costs.
In the electrical power management systems segment, net sales grew by 6% to US$830m, primarily driven by the addition of new business and increased production on key platforms.
