Lear Profit Jumps 69%, Raises Full-Year Outlook

Lear Corp. reported a 69% jump in its first-quarter profit and lifted its full-year outlook as the rise in global vehicle production increases demand for its automotive seats and sales of sport-utility vehicles in the U.S. continues to drive orders for its higher-end seating products.

The Southfield, Mich.-based company has been on a tear as auto makers concentrate on improving the interior spaces of their vehicles to not only compete, but meet changing demands as consumers consider comfort in addition to the exterior design when buying a vehicle.

Meanwhile, global auto sales are expected to increase 2.7% this year to 89.8 million vehicles.

The company said core operating earnings for the year are now expected to be in the range of $1.4 billion to $1.45 billion, a $50 million increase over the prior forecast. Free cash flow is also expected to be $50 million higher at $850 million.

For the quarter, profit rose to $248 million, or $3.29 a share, compared with $147.5 million, or $1.86 a share, for the same period a year earlier.

Revenue jumped 4% to $4.7 billion. The company's seating segment generated $3.6 billion in sales, which was a 3% increase over the same period a year earlier. The electrical division reported a 2% increase in sales to $1.1 billion. Stripping out currency and commodity prices, sales would have jumped 8% for both divisions.

Write to Jeff Bennett at [e-mail]

(END) Dow Jones Newswires

April 27, 2016 08:15 ET (12:15 GMT)

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