May 7 (Reuters) - U.S. auto parts maker Lear on
Friday reported a better-than-expected first-quarter profit and
raised its full-year outlook, helped by robust demand in key
markets such as China, which is leading the sector's recovery
from the COVID-19 crisis.
Lear's results come a day after rival Magna International
Inc also beat estimates for quarterly results, driven by
strong China demand.
Even as the health crisis has boosted demand for personal
transport, a severe chip shortage has led car companies to cut
production, capping sales growth at auto parts makers.
Lear said it now expects full-year sales between $20.35
billion and $21.15 billion, up from its prior forecast of $19.8
billion to $20.8 billion.
Lear, which counts General Motors Co and Ford
among its top customers, makes automotive seating and electrical
distribution systems that manage electrical power within a
The company also raised its 2021 adjusted earnings before
interest, taxes, depreciation, and amortization forecast to a
range of $1.70 billion to $1.87 billion, from prior range of
$1.69 billion to $1.86 billion.
On an adjusted basis, Lear earned $3.73 per share in the
quarter ended April 3, beating analysts' average estimate of
$2.95 per share, according to IBES data from Refinitiv.
Net sales rose 20% to $5.4 billion, topping the Wall Street
estimate of $4.89 billion.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shailesh