Lear raises forecast as strong U.S. auto sales boost demand for parts

Reuters

Oct 25 (Reuters) - Lear Corp raised its full-yearforecast as demand rose for its auto seats and electric powersystems due to strong vehicle sales in the United States.

Lear shares rose 2 percent in premarket trading after thecompany reported an 11 percent rise in quarterly revenue.

The company has benefited from an increase in demand for newcars in the United States. Although recent economic uncertaintyhas tempered demand, automakers are on track to report some oftheir highest sales in 2014.

Lear raised its full-year sales forecast to $16.0 billionfrom $15.8 billion and increased its target for core operatingearnings to $835 million from $750 million-$800 million.

Analysts on average were expecting full-year revenue of$15.89 billion, according to Thomson Reuters I/B/E/S.

Sales in the company's larger seating business rose 9percent to $2.89 billion in the third quarter ended Sept. 28.Total revenue rose 11 percent to $3.92 billion.

Net income attributable to Lear fell to $112.8 million inthe quarter from $121.4 million a year earlier. Earnings,however, rose to $1.38 per share from $1.23 as Lear bought backshares in the past 12 months.

The company's stock was up at $77.55 before the bell, havinggained 62 percent this year to Thursday close, outperforming theS&P 500 index.

Rates

View Comments (0)