21 April, 2018 -
03 May, 2018 -
Washington DC, U.S.
16 May, 2018 -
17 May, 2018 - 18 May, 2018
23 May, 2018 - 25 May, 2018
Growth in the global automotive production and Lear’s solid client portfolio have robustly benefitted the company’s second quarter earnings.
Lear Corp reported a net income of US$181.9 million for the second quarter of 2015 compared to US$148.5 million in the same period last year. Analysts had expected lower revenue of US$4.69 billion for the quarter.
Shares are up from US$1.81 to US$2.33 and net sales are up 1% to US$4.64 billion, from US$4.59 billion last year.
A continued rise in vehicle demand in Europe is one of the reasons behind the company’s strong performance. Lear is an exclusive supplier for several smaller, premium car models. BMW is Lear’s biggest car client and, together with Ford and GM, they formed 54% of Lear’s sales in 2014. The company also supplies automotive interiors to Daimler, Fiat Chrysler Automobiles, Hyundai Motor Company, Jaguar Land Rover, Peugeot, Renault-Nissan Alliance, and Volkswagen Group.
Eagle Ottawa, the world’s largest supplier of premium automotive leather, was acquired by Lear in January 2015. Not only Lear has gained from Eagle Ottawa’s expertise in premium leather but it should benefit from additional contracts from luxury automakers. Eagle Ottawa generated around US$1 billion in revenue.
For the whole of 2015, Lear expects core operating earnings to be in the range of US$1.22 billion to $1.28 billion, up from the prior range of US$1.175 to US$1.225 billion.
Sales are expected to be in the range of US$18 to US$18.5 billion, consistent with the prior range. Analysts expect the company to report full year 2015 revenue of US$18.40 billion.
Source: RTT and Trefis