‘Best third quarter’ for Eagle Ottawa owner Lear
24/10/2014
"We had our best third quarter ever," said Matt Simoncini, Lear's chief executive. "Sales grew faster than industry production, and we improved our margins in both business segments on a year-over-year basis.
“The investments that we have been making to improve our cost structure, increase our component capabilities, and grow and strengthen both our business segments are paying off. We are continuing to win new business in both segments and in every region of the world."
In the third quarter, global vehicle production increased 3% from a year ago, reflecting primarily strong production growth in China and North America. Production was up 10% in China, 8% in North America and 1% in Europe & Africa. Production was down 20% in South America.
"Eagle Ottawa adds design and development resources, as well as technical expertise to our existing leather capabilities. Eagle Ottawa will enhance the level of craftsmanship, improve our overall cost structure and increase opportunities for sales growth and diversification," added Mr Simoncini.
It said it expects the transaction to close in the first quarter of 2015, subject to customary conditions, including regulatory approvals.
Lear has increased its full year 2014 earnings outlook, reflecting strong year-to-date operating performance. Sales in 2014 are expected to be $17.7 billion, consistent with prior guidance, despite a weakening euro.
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