Lear Increases 2007 Earnings Targets on Back of Weaker Dollar
Auto parts supplier Lear raised its financial outlook Tuesday due to better-than-expected production levels of light trucks and the benefits of its ongoing restructuring.
The company now expects core operating earnings for the year of $600 million to $640 million, excluding Lear's Interior business, versus a prior range of $580 million to $620 million.
Free cash flow is seen at about $260 million, or a $20 million improvement from the Lear's previous outlook.
Lear said in a regulatory filing it is also benefiting from productivity initiatives and a slightly weaker U.S. dollar.
The company, which is being acquired for about $5.3 billion by an affiliate of investor Carl Icahn, said the higher forecast does not warrant a change in the recommendation by its board in favor of the deal.