Southfield, Michigan - Automotive seating system supplier Lear Corp. has reported significant losses in the third quarter (Q3) of 2008.
In the seating segment net sales were down by $403 million whilst operating margins declined sharply, "reflecting primarily the impact of lower vehicle production," the company said, 30 Oct.
The company recorded net sales of $3100 million and a pretax loss of $77.3 million, including restructuring costs of $45.8 million in comparison to net sales of $3600 million and a pretax income of $60.1 million in Q3 2007, including restructuring costs of $37.3 million and other special items of $8.0 million.
Net loss was up to $98.2 million from $41.0 million in the same period in 2007. Income before interest, expenses, taxes, costs and special items was $46.1 million compared with $170.4 million for Q3 in 2007.
"We are experiencing recessionary conditions in North America, and there is increasing weakness in Europe," said Lear's chairman Bob Rossiter. "As a result, industry production in these mature markets is down sharply. In response the company has been very aggressive in reducing structural costs."