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.

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