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Lear Corp. swung to a fourth-quarter profit amid a $1.51 billion gain related to the auto parts maker exiting bankruptcy in November. The maker of automotive seating systems, electrical distribution systems and electronic products cut its debt obligations and shed thousands of workers while in bankruptcy, giving Lear improved liquidity. Looking ahead, though, Lear issued disappointing sales guidance. The company said it expected 2010 sales between $10.2 billion and $10.7 billion, below Wall Street's projection of $10.87 billion. For the fourth quarter, Lear posted a profit of $1.23 billion, compared with a year-earlier loss of $688.2 million. Per-share figures weren't provided. Besides the gain, the latest quarter included $378.3 million in restructuring charges and write-downs. Sales grew 5.5 percent to $2.74 billion, surpassing the average analyst estimate on Thomson Reuters of $2.67 billion. Revenue fell 16 percent in North America but rose 7.8 percent in Europe. About 70 percent of Lear's sales in 2009 were generated outside of North America. Gross margin jumped to 6 percent from 2.3 percent. In the larger seating segment, sales rose 5 percent because of favorable currency changes. In the electrical segment, sales grew 8 percent amid an improved production environment.
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