Southfield, Michigan -- Lear Corp. has reported net sales of $3.7 billion in the second quarter of 2012, no change from Q2 2011, while net income dropped 18 percent to $145 million, the global supplier of automotive seating said in its 2 Aug quarterly report.
In seating, net sales were down 2 percent to $2.8 billion, which Lear said reflected the negative impact of foreign exchange, partially offset by the addition of new business, including the acquisition of automotive and speciality fabric maker Guilford in May. Operating earnings were $185 million, with an operating margin of 6.6 percent.
Lear, which also makes electrical power management systems, said business conditions in Europe were very challenging in the second quarter. However, vehicle production was up in both North America (27 percent) and Japan (68 percent).
"Lear performed well in the second quarter, despite challenging industry conditions in Europe," commented Matt Simoncini, Lear's ceo. "Lear is continuing to invest in strengthening our core businesses by expanding our component capabilities in emerging markets and making acquisitions, such as Guilford."
Lear expects 2012 net sales in the range of $13.9 to $14.4 billion and core operating earnings in the range of $740 to $790 million. The forecast is based on industry vehicle production of 14.9 million units in North America, up 4 percent from the prior outlook, and 16.7 million units in Europe, down 2 percent from the prior outlook.