Southfield, Michigan -- Automotive seating supplier Lear Corp. has recorded sales up 33 percent to $3000 million in the second quarter of 2010 (Q2), compared to the same period last year.
Operating earnings increased by $242 million to $190 million over the same periods. The company also increased its 3-year sales backlog to $1900 million, up $500 million from its prior status, a 3 Aug Lear statement said.
Sales in Lear's seating business were up 30 percent to $2400 million, "primarily driven by the improvement in global vehicle production and favourable platform mix," the company said.
"Global production continued to recover in the second quarter," Lear chairman Bob Rossiter said. "This, combined with improvements in our cost structure, is driving increased profitability. In addition, we continue to win new business around the world which will further diversify our sales," he said.
"Over the past several years, we have worked hard to improve our business structure and position our company for long-term success," Rossiter added.
Lear has also improved its financial outlook for 2010 as Q2 year-on-year vehicle production increased 73 percent in North America, 11 percent in Europe, and 24 percent in China, compared to the same period the previous year.
In 2010, Lear expects net sales of around $1100 million, which is consistent with its prior outlook, and operating earnings of $450-500 million -- up around $75 million from the prior outlook, the statement said. Free cashflow is expected to be $225-$275 million, also an increase of around $75 million. (RD)