Lear's adjusted profit, sales rise above expectations even as global vehicle production fell

Lear Corp. reported Friday a third-quarter adjusted profit and revenue that rose above expectations, as global vehicle production "recovered significantly" from the prior quarter but remained below year-ago levels. The stock was still inactive in premarket trading. The auto parts maker's net income fell to $174.4 million, or $2.89 a share, from $215.9 million, or $3.58 a share, last year. Excluding non-recurring items, adjusted earnings per share rose to $3.73 from $3.54, beating the FactSet consensus of $3.17. Sales grew 1.6% to $4.90 billion, above the FactSet consensus of $4.76 billion, although global vehicle production fell 4%. For 2020, the company expects sales of $16.35 billion to $16.65 billion, surrounding the FactSet consensus of $16.61 billion, and expects capital spending of $425 million and free cash flow of $125 million to $175 million. "I am very pleased with how quickly the industry recovered and our business rebounded after the second quarter shutdowns, and, barring any COVID-19-related disruptions or a significant change in industry demand, I am optimistic that our positive momentum will continue for the balance of the year," said Chief Executive Ray Scott. The stock has rallied 10.3% over the past three months through Thursday, while the S&P 500 has gained 2.0%.

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