Lear 3Q net income falls 7 percent on charges

Lear 3rd-quarter net income falls on restructuring costs, but company raises forecasts

Associated Press

NEW YORK (AP) -- NEWS: Lear Corp. said Friday its net income fell 7 percent in the third quarter as its restructuring costs increased, but it raised its estimates for the full year.

DETAILS: Lear is based in Southfield, Mich. It makes automotive seating and electrical distribution systems. The company said its restructuring costs rose by about $10 million compared to last year, but global vehicle production rose 4 percent, boosting sales at both of its businesses.

NUMBERS: Lear said its net income rose to $112.8 million, or $1.38 per share, from $121.4 million, or $1.23 per share. Excluding one-time charges the company said it earned $1.45 per share. Revenue grew 11 percent, to $3.92 billion from $3.54 billion.

Analysts expected net income of $1.32 per share and $3.83 billion in revenue, according to FactSet.

FUTURE: Lear is now forecasting $835 million in core operating earnings, up from its previous guidance of $750 million to $800 million. It raised its revenue estimate to $16 billion from $15.8 billion.

Analysts expect $15.9 billion in revenue on average.

STOCK: Shares of Lear gained $1.44 to $77.60 Friday afternoon. Earlier they reached an all-time high of $79.15. They are up more than 65 percent so far in 2013.

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