S&P: Lear unaffected

Standard & Poor's said Lear Corp.'s announcement that its first-quarter earnings per share will be below prior estimates will not affect the ratings or outlook on the company.

S&P said Lear expects net income to be about breakeven in the first quarter, a sharp reduction from the $0.50 to $0.70 per share previously expected.

Weaker earnings will result from deeper vehicle production cuts than originally expected, especially in North America and for vehicle platforms where Lear has substantial content, according to S&P.

Also, earnings pressures are likely to continue, as General Motors Corp. and Ford Motor Co., Lear's two largest customers, have announced additional production cuts for the second quarter.

But S&P said Lear's financial profile is expected to remain solid for the rating, supported by good cash flow generation and strong liquidity.

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