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April 25, 2005

USA: Vehicle production cuts hit Lear profit

Lear Corporation first quarter 2005 net income has plunged from $US91.4 million a year ago to $15.6 million.

Lear Corporation first quarter 2005 net income has plunged from $US91.4 million a year ago to $15.6 million.

Net sales of $4.3 billion were off $0.2 billion on the results of a year ago.

Lear said the decrease in net sales primarily reflects “unfavourable vehicle platform mix” in North America, as well as lower industry production in Lear’s major markets. Net income per share in the quarter declined from the year earlier results primarily due to lower sales and the adverse net impact of higher raw material costs.

“Industry conditions in North America are very difficult.  In this challenging environment, we are evaluating every element of our cost structure for further efficiencies, and we are reviewing all aspects of our global business to ensure that we are positioned for long-term profitable growth,” said chairman and CEO Bob Rossiter.

For the second quarter of 2005, net sales are expected to be approximately $4.5 billion, up about 6% from a year ago.

Net income per share is expected to be in the range of $0.20 to $0.40, compared with $1.58 for the second quarter of 2004.

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