Lear Profit Tops Estimate; Lifts FY Outlook - Update

(RTTNews) - Lear Corp (LEA), Friday reported an increase in second-quarter profit as the auto parts maker added new business and ramped up production on key platforms, with both earnings and revenue beating Wall Street estimates.

Lear lifted its sales outlook for 2014, sending its shares up 3.5 percent in morning trade on the New York Stock Exchange.

"We are well positioned to take advantage of industry trends toward global vehicle platforms, direct component sourcing and increasing electrical content," said CEO Matt Simoncini.

Southfield, Michigan-based Lear posted quarterly net earnings of $148.5 million or $1.81 per share, compared with $137.3 million or $1.60 per share a year ago.

Excluding items, adjusted earnings for the quarter were $173.6 million or $2.12 per share, compared with $138.3 million or $1.62 per share last year.

On average, 13 analysts polled by Thomson Reuters estimated earnings of $1.97 for the quarter. Analysts' estimates typically exclude special items.

Sales for the second quarter climbed 11 percent to $4.58 billion from $4.11 billion in the prior year, topping analysts' expectations of $4.44 billion.

Seating segment sales increased 12 percent, Electrical segment gained 9 percent, compared with last year.

For fiscal year 2014, Lear now projects sales of $17.6 billion to $17.9 billion, up from its prior guidance of $17.2 billion to $17.7 billion. Analysts currently expect sales of $17.54 billion for the year.

The company now expects full-year core operating earnings of $975 million to $1.03 billion, from its prior expectation in the range of $935 million to $985 million.

Lear stock is trading at $99.16, up $3.38 or 3.53%, on a volume of 745k shares.