Lear Q3 Profit Rises - Update

(RTTNews) - Auto parts maker Lear Corp. (LEA), Friday reported an increase in profit for the third quarter, driven largely by revenue growth especially at seating segments, with earnings beating Wall Street estimates. The company lifted its adjusted profit outlook, while maintaining its sales outlook for the full year. Lear shares are currently trading higher by about 7 percent on the New York Stock Exchange.

Southfield, Michigan-based Lear's third-quarter profit rose to $140.1 million or $1.72 per share from $112.8 million or $1.38 per share a year ago.

Excluding items, adjusted earnings for the quarter were $1.93 per share, up from $1.45 per share last year. On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.88 per share for the quarter. Analysts' estimates typically exclude special items.

Lear, a maker of automotive seats and electrical power systems, said sales for the third quarter grew 8 percent to $4.23 billion from $3.92 billion a year ago. Analysts had a consensus revenue estimate of $4.27 billion for the quarter.

Chief Executive Matt Simoncini said, "Sales grew faster than industry production, and we improved our margins in both business segments on a year-over-year basis."

Seating segment sales rose 10 percent to $3.2 billion, while electrical segment inched up to $1.04 billion from $1.03 billion last year.

For the full year 2014, the company continues to expect sales of about $17.7 billion. Analysts currently estimates sales of $17.71 billion for the quarter.

The company raised its full-year adjusted earnings outlook to $640 million to $655 million from prior outlook of $610 million to $645 million.

LEA is currently trading at $91.27, up $5.71 or 6.67%, on the NYSE.