Because of rising vehicle sales in the U.S., Lear Corp raised its full-year forecast as there was a surge in demand for its auto seats and electric power systems. Lear posted an 11% climb in quarterly revenue. As a result, its shares widened by 2% in premarket trading. Amid the uncertainty in the economy, automakers are on pace to post some of their highest sales in 2014.
Lear raised its full-year sales forecast to $16.0 billion from $15.8 billion and brought up its target for core operating earnings to $835 million from $750 million to $800 million. Thomson Reuters I/B/E/S said that on average, analysts expected a full-year revenue of $15.89 billion. In Lear’s larger seating business, sales increased by 9% to $2.89 billion in the third quarter ended Sept. 28.
Meanwhile, its total revenue grew by 11% to $3.92 billion. The net income attributable to Lear decreased to $112.8 million in the quarter from $121.4 million the previous year. On the other hand, earnings increased to $1.38 per share from $1.23 as Lear bought back shares in the past 12 months. Lear reported that stock was up at $77.55 before the bell, after having posted a 62% gain this year to Thursday close, doing better than the S&P 500 index.