Southfield, Michigan — Lear Corporation, which makes automotive seating, returned record results for the third quarter of 2017.
In the quarter, sales were $5bn up 10% from the 2016 quarter and net income was $295m up 38% from the same time last year. This was, the company said, a growth of 19%.
'We delivered our best-ever third-quarter results with record sales, earnings and free-cash flow. We are again increasing our financial outlook for the full year,' said Matt Simoncini, Lear's president and Chief Executive Officer. He added 'we are converting our earnings into cash at a high level, which is allowing us to fund future growth and deliver superior shareholder returns.'
Lear said that sales were up by 8% reflecting new business in the key product segments of automotive seating, and the acquisition of Grupo Antolin's seating business, which partly offset lower production volumes in North America.
Lear said it is increasing its full year 2017 financial outlook for sales earnings and free cash flow which it now expects to be $20.4 bn up $400m from the prior outlook and core operating earnings are expected to be about $1.7 billion up $50 m.
This outlook is based on a global industry production assumption of 93.4m vehicles up 2% from 2016 with 17.2 units in North America down 4%; 23m in Europe and Africa, up 3%; and 26.1m units in China, up 1%.
