Automotive interior specialist Lear Corporation has posted a net loss of $750.1 million for the third quarter of 2005, compared with net income of $91.7 million a year ago.
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Net sales were $4.0 billion compared to $3.9 billion in Q3 2004.
The company said the increase in net sales from the prior year reflected the addition of new business globally, largely offset by lower production on high-content Lear platforms in North America.
Operating performance was down sharply, reflecting the adverse platform mix in North America, as key Lear models changed over and production of high-content SUVs and pickups declined, as well as continuing cost pressures throughout the supply chain.
“At the same time that we are transitioning a significant portion of our North American business, industry conditions continue to be very difficult,” said Lear chairman and CEO Bob Rossiter.
Lear announced global restructuring earlier this year. It has has implemented aggressive cost reduction initiatives, established its interior product segment as a stand-alone unit and announced a framework agreement for a joint venture with WL Ross & Co for the interior product segment.
Lear declined to give formal financial guidance for the fourth quarter, saying “a number of significant uncertainties are impacting the outlook”.
