For the third quarter of 2010, Lear Corp. posted a higher quarterly profit, prompting it to improve its full-year outlook on the improving global automotive market. The automotive supplier posted an increase in its net income to $95.3 million, compared with $24.6 million in the same quarter the previous year. Revenue climbed to $2.8 billion from $2.5 billion.
Due to the improved production environment, Lear also raised its 2010 full-year outlook. Lear anticipates sales of about $11.7 billion and core operating earnings from $550 million to $600 million. In August, Lear had predicted sales of about $11 billion and earnings of $450 million to $500 million.
In a statement, Lear CEO Bob Rossiter said that the global industry demand continues to improve, but production levels in the mature markets are still considerably below historical levels.
Rossiter said that the company achieves an improvement in its operating results and positive cash flow due to the major structural cost reductions implemented in the past few years. He said that moving forward, Lear plans to “hold the line on costs and continue to focus on growing worldwide sales."
In the third quarter, sales in Lear's seating business increased by 8% to $2.2 billion, a reflection of the improvement in global vehicle production and the addition of new business.
In the company's electrical power management systems segment, net sales rose by 20% to $611.6 million, mainly driven by the addition of new business and improvement in global vehicle production. [via autonews - sub. required]