Lear Corporation (NYSE:LEA) reported higher profit for the third quarter as revenue showed growth. Net income for Lear Corporation rose to $100.7 million (95 cents per share) vs. $95.3 million (88 cents per share) in the same quarter a year earlier. This marks a rise of 5.7% from the year earlier quarter. Revenue rose 22.7% to $3.46 billion from the year earlier quarter. LEA reported adjusted net income of $1.08 per share. By that measure, the company fell short of mean estimate of $1.14 per share. It beat the average revenue estimate of $3.24 billion.
“Our positive momentum continued in the third quarter as our sales increased at a faster pace than industry production and we achieved our 9th consecutive quarter of improved earnings,” said Matt Simoncini, Lear’s president and chief executive officer. “We are continuing to invest in strengthening and growing our core businesses with an emphasis on increasing our component capabilities in emerging markets. Our strong financial position allows us to strengthen our competitive position while returning cash to our shareholders.”
Competitors to Watch: Johnson Controls, Inc. (NYSE:JCI), Visteon Corporation (NYSE:VC), Gentex Corporation (NASDAQ:GNTX), General Electric (NYSE:GE), United Technologies Corp. (NYSE:UTX), Honeywell Intl. Inc. (NYSE:HON).
BorgWarner Inc. (NASDAQ:BWA) reported net income above Wall Street’s expectations for the third quarter. Net income for BorgWarner Inc. rose to $141.6 million ($1.15 per share) vs. $106.7 million (87 cents per share) in the same quarter a year earlier. This marks a rise of 32.7% from the year earlier quarter. Revenue rose 27% to $1.79 billion from the year earlier quarter. BWA beat the mean analyst estimate of $1.05 per share. Analysts were expecting revenue of $1.78 billion.
“Our business continued to thrive in the third quarter,” said Timothy Manganello, Chairman and CEO of BorgWarner. “The industry’s steadfast focus on fuel economy and improved emissions continued to drive the adoption of BorgWarner technology around the world, and above-market growth for our company. Excluding the impact of currency and sales related to the acquisition of the Traction Systems division of Haldex, which closed in first quarter 2011, our sales were up approximately 16% in the third quarter, compared with 5% growth in global vehicle production. While growing our sales in the quarter, we also successfully managed costs, which resulted in a record quarterly operating income margin of 11.1%.”
Competitors to Watch: Dana Holding Corporation (NYSE:DAN), Meritor Inc (MTOR), Cummins Inc. (NYSE:CMI), Quantum Fuel Systems Tech. (QTWWD), Enova Systems, Inc. (AMEX:ENA), Standard Motor Products, Inc. (NYSE:SMP), Federal-Mogul Corporation (NASDAQ:FDML), Westport Innovations Inc. (NASDAQ:WPRT), Lear Corporation (NYSE:LEA), and Tenneco Inc. (NYSE:TEN).