Lear Corporation has reported third quarter net sales of $2.8bn ($2.5bn a year ago), pretax income of $103.9m ($49.4m), including restructuring costs and other special items of $30.2m, and net income per share of $1.76. Operating income was $149.5m ($110.5m) and net income per share $2.28.
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Seating segment sales were up 8% to $2.2bn, primarily driven by the improvement in global vehicle production and the addition of new business. In the electrical power management systems segment, net sales were up 20% to $611.6m. Operating margins, excluding restructuring costs, in both segments improved on a year-over-year basis, reflecting the increase in sales and the benefit of cost savings from operational restructuring actions.
“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 CEO and president Bob Rossiter.
The 2010 full year forecast has been revised upwards. Key 2010 assumptions include industry vehicle production of approximately 11.8m units in North America, up 7% from the prior outlook, 16.8m units in Europe, up 5%, and 13.8m units in China, up 3%. Lear expects 2010 net sales of approximately $11.7bn, up $700m, and 2010 core operating earnings of $550m to $600m, up $100m.
