Europe’s Slump Dents Lear Earnings

Lear Corp. net income slid 18% year over year to $145 million (€118 million) in the second quarter of this year. Revenue was flat at $3.7 billion (€3 billion).

The company says Europe has surpassed North America as its largest market just as the dollar strengthens and the European car market is reeling from the region's economic crisis. Revenue tumbled 16% to $1.3 billion (€1.1 billion) in Europe and jumped 16% to $1.5 billion (€1.2 billion) in North America.

Sales dipped 2% to $2.8 billion (€2.3 billion) at Lear's seating business and rose 7% to a record $872 million (€709 million) at its electric power management systems unit.

For the full year, the company boosted its North American vehicle production forecast 4% to 14.9 million units and cut its European output prediction 2% to 16.9 million vehicles.