Lear Corp. 2Q profit drops, adjusted earnings beats view

SOUTHFIELD (AP) -- The automobile seat maker Lear's second-quarter net income dropped 6 percent, saddled with higher expenses. But its adjusted earnings and revenue beat Wall Street's view. The company raised its full-year revenue forecast last Friday as it adjusted regional vehicle production expectations. Its shares rose, briefly touching an all-time high. Lear said that it earned $137.3 million, or $1.60 per share, for the period ended June 29. A year earlier it earned $145.4 million, or $1.45 per share. Excluding unusual items, earnings were $1.62 per share. Analysts, on average, expected earnings of $1.37 per share, according to a FactSet survey. Selling, general and administrative expenses rose to $127.9 million from $117.3 million, while interest expense increased to $17.4 million from $14 million. Revenue rose 12 percent to $4.11 billion from $3.67 billion on higher sales at its seating and electrical power management systems segments. Sales improved in all regions. Wall Street was looking for $3.91 billion in revenue. For the year, Lear now foresees revenue of about $15.8 billion. The company previously predicted revenue in a range of $15 billion to $15.5 billion. Analysts expect full-year revenue of $15.57 billion. Lear said it expects 2013 industry vehicle production of 16.2 million units for North America. This is up 1 percent from the previous guidance. For Europe and Africa, production is now expected to be 19.2 million units, also up 1 percent from previous expectations. The Southfield, Mich., company anticipates vehicle production of 18.7 million units for China, down slightly from the prior prediction. Published: Tue, Jul 30, 2013