SOUTHFIELD, Mich., July 22 (Reuters) - Lear Corp. , a leading auto parts supplier, on Monday said its quarterly earnings rose on higher auto production, and full-year earnings would exceed earlier estimates.
Lear, which builds automotive seats, interiors, and electrical parts, said net income rose to $85.5 million, or $1.27 a share, from $44.9 million, or 69 cents a share, a year earlier. Excluding nonrecurring items and other costs, last year's earnings totaled $69.4 million, or $1.06 per share.
Analysts' consensus estimate from market researcher Thomson First Call was $1.18 per share, in a range of $1.11 to $1.25 a share.
Sales rose to $3.79 billion from $3.61 billion.
Additionally, Lear also recorded a pretax charge of $310.8 million to reflect its adoption of new accounting standards governing the amortization of goodwill. Lear said the charge is reflected on its books as having taken effect at the start of the first quarter.
Looking ahead, Lear said it expects third-quarter sales to rise slightly from a year earlier, as higher vehicle production in North America is offset by lower output in Western Europe. Earnings should range from 75 to 85 cents per share, it said.
For the full year, Lear said North American vehicle production should range 15.8 million to 16.2 million units, with Western European production between 15.5 million and 16.0 million units.
That should lead to earnings of $4.20 to $4.50 per share, excluding the goodwill impairment charge.
Analysts were looking for 83 cents per share in the third quarter and $4.26 per share for the year, according to First Call.
Lear shares on Friday fell 70 cents, or 1.8 percent, to close at a six-month low of $38 on the New York Stock Exchange.