Lear has reported revenue of US$3,538.6m in the three-month period to 29 September (Q3 2012), versus US$3,460.0m in the same period to 1 October 2011 (Q3 2011), a gain of 2.3%. This took revenue in the year-to-date period to US$10,847.6m, up 1.9% from the 2011 figure of US$10,648.0m.
Q3 revenue rose in North America (12.0% to US$1,405.1m), Asia (5.8% to US$623.6m) and the Rest of World (5.8% to US$623.6m), but fell in Europe (9.7% to US$1,179.6m).
Content per vehicle in the latest quarter was US$387 in North America (US$400 in Q3 2011) and was US$319 (US$334) in Europe.
Core operating earnings increased from US$177.9m in Q3 2011 to US$179.3m in the latest quarter, a rise of 0.8%, but declined to US$571.8m in the first three quarters of the current year, from US$610.5m in the first nine months of the prior year, a drop of 6.3%.
Net income in Q3 2012 was US$121.4m, versus US$100.7m in Q3 2011, while the respective nine-month totals were US$400.9m and US$434.2m.
In the company’s Seating segment, Q3 net revenue was down 1% to US$2,661.6m, reflecting primarily the negative impact of foreign exchange and lower industry production in Europe, partially offset by the acquisition of Guilford and Lear’s sales backlog. Adjusted segment earnings were US$161.1m (6.1% margin). Earnings decreased from Q3 2011, reflecting increased product and facility launch costs, as well as programme development costs to support new business, primarily in South America. Seating segment revenue and earnings totalled US$8,268.8m and US$534.5m (6.5%) in the latest three quarters.
In Lear’s Electrical Power Management Systems segment, Q3 2012 net revenue grew by 14% to a quarterly record of US$877.0m, driven primarily by the addition of new business, partially offset by the negative impact of foreign exchange. Adjusted segment earnings were US$66.0m (7.5%). Earnings increased from last year, reflecting the increase in sales and productivity improvements, partially offset by increased product and facility launch costs and programme development costs. Electrical Power Management Systems segment revenue and earnings totalled US$2,578.8m and US$178.9m (6.9%) in the January-September 2012 period.
Lear’s full year outlook for revenue, core operating earnings and free cash flow remains in line with prior guidance. The company expects 2012 net revenue of approximately US$14.3bn, as compared to prior guidance of US$13.9bn to US$14.4bn. Core operating earnings are expected to be in the range of US$745m to US$785m, which reflects a narrowing of the range as compared to the prior guidance of US$740m to US$790m. Free cash flow in 2012 is expected to be approximately US$275m, unchanged from prior guidance. Adjusted net income attributable to Lear is now forecast to be in the range of US$520m to US$560m, up from prior guidance of US$510m to US$540m, primarily reflecting lower-than-previously-expected tax expense.
The 2012 outlook is based on industry vehicle production of 15.2 million units in North America, up 2% from the prior outlook, and 16.6 million units in Europe, down 1% from the prior outlook. Financial guidance is based on an average full year exchange rate of US$1.28:€, up 2% from the August guidance.
