Southfield, MI, January 28--Lear Corp., the maker of automotive carpet and interiors, said earnings in the latest quarter fell 7 percent from a year earlier, hurt mainly by higher raw-material prices.
Challenging market conditions are also expected to affect first-quarter earnings, but Lear said its long-term forecast remains positive due to a $3.8 billion three-year sales backlog.
The earned $123 million, or $1.70 a share, on revenue of $4.29 billion in the fourth quarter.
Analysts were expecting earnings of $1.68 a share, according to Thomson First Call.
In the same period a year earlier, it earned $132.4 million, or $1.81 a share, on revenue of $4.26 billion.
Fourth-quarter sales rose slightly as new global business and the weak dollar offset lower industry production.
Lear expects first quarter earnings of 50 cents to 70 cents on sales of $4.3 billion to $4.5 billion. Last year, earnings were $1.24 a share on sales of $4.5 billion.
Analysts have been expecting earnings of 70 cents a share on sales of $4.5 billion.
For all of 2005, the company projects earnings of $5 a share to $6 a share on sales of $17.6 billion to $18 billion.
Analysts are expecting 2005 earnings of $5.58 a share on sales of $17.8 billion.
In the twelve months ended Dec. 31, the company earned $422.2 million, or $5.77 a share, on revenue of $16.96 billion.
In 2003, it earned $380.5 million, or $5.31 a share, on revenue of $15.75 billion.
