Lear Q1 Profit Up, Adj. Earnings Top Estimates; Lifts 2014 Outlook - Update

(RTTNews) - Lear Corp. (LEA), a supplier of automotive seating and electrical distribution systems, Friday reported a higher first-quarter profit, as sales grew 10 percent, with growth in both business segments. Adjusted earnings as well as revenues topped analysts' expectations. The company also lifted its outlook for full year 2014.

Net income attributable to the company increased to $122 million or $1.47 per share from $108.5 million or $1.13 per share in the prior year.

Adjusted earnings were $1.84 per share, while the company posted $1.30 per share last year. On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.70 per share for the quarter. Analysts' estimates typically exclude special items.

Core operating earnings were $243 million, up 21 percent from last year.

Net sales for the quarter climbed 10 percent to $4.36 billion from $3.95 billion a year ago, with growth in both business segments. Analysts estimated revenues of $4.28 billion for the quarter.

In Seating segment, sales increased 11 percent to $3.2 billion, reflecting the addition of new business and higher production on key platforms. Electrical segment sales grew 10 percent to $1.1 billion, driven by addition of new business, the company said.

Matt Simoncini, president and chief executive officer of the company said, "In the first quarter, we continued our positive sales and earnings momentum. With a strong start to 2014, we are on track to deliver our fifth consecutive year of higher sales and earnings per share."

For the year 2014, the company now expects core operating earnings to be in the range of $935 to $985 million, while it forecast $910 million to $960 million earlier. Adjusted net income attributable to Lear is expected to be in the range of $580 to $615 million. Sales are now anticipated to be in the range of $17.2 to $17.7 billion, up from the earlier outlook of $16.9 billion to $17.4 billion. Analysts are looking for sales of $17.32 billion for the year. LEA is currently trading at $84.42, down 0.54 percent.