, an automotive interior systems supplier, said Thursday that it lowered the financial outlook for 2006, citing production cuts in North America.
The production cuts are expected to negatively impact 2006 net sales by about $300 million and income before interest, other expense, income taxes, restructuring costs and other special items by about 15% compared with prior guidance levels of about $18 billion in net sales and between $400 million to $440 million in core operating earnings. Analysts polled by Thomson First Call were expecting revenue of $17.9 billion.
The production cuts will adversely impact both the third and fourth quarters and each of Lear's business segments, about two-thirds of the decline is in the fourth quarter and a disproportionate amount is in the interior segment, the Southfield, Mich.-based company said.
Shares of the company were trading at $19.01, down $1.37, or 6.7%, Thursday.
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