Lear’s first-quarter profit dropped 14 percent

Article by Christian A., on May 6, 2012

Lear Corp.’s net income may have declined in the first quarter; however, its overall business improved, driven by gains in North America. In a statement, the auto interiors and electronics supplier said that profits were offset partly by bigger product development costs. The net income that could be attributed to shareholders fell to $134.1 million, or $1.32 per share, from $156.0 million, or $1.44 per share, the previous year.

Its revenue increased by 4% to $3.64 billion. The global industry production volumes in North America and Japan were affected by an increase in production after the calamity in Japan.

Lear’s output in Japan had nearly doubled. In April, U.S. auto sales grew 2.3% as U.S. shoppers wanted to replace their aging cars and trucks and the U.S. economy became stronger. Two of Lear’s biggest customers are BMW and Ford Motor Co. BMW has increased its sales in the U.S. by 14% while Ford had a 5% boost. Lear’s sales in North America grew by 15% to $1.39 billion.

For the quarter ended March 31, its seating segment sales (its biggest unit) increased by 3% to $2.8 billion. Lear's earnings per share surpassed Wall Street expectations. Thomson Reuters said that analysts believed that Lear will earn $1.22 per share on revenue of $3.60 billion. For the entire year, Lear’s sales are expected to reach $13.85 billion to $14.35 billion. On average, analysts expect $14.47 billion. It was also disclosed that the purchase price for specialty textile producer Guilford Mills is around $260 million.

Topics: lear, profit

If you liked the article, share on:

Pin It

Comments

Recommended

Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries