Lear predicts lower earnings

Auto parts supplier Lear Corp. has predicted 2005 earnings below earlier estimates as a result of rising raw material costs and cuts in North American vehicle production by Ford Motor Co. and General Motors.
The interior trim and electrical system manufacturer said it expects 2005 net income per share of $5 to $6, while analysts on average expect Lear to earn $6.20 per share in 2005.
Lear also said it expects to invest between $425 million to $475 million in 2005 in capital spending to support new sales. The company reported its three-year sales backlog had increased $750 million to $3.8 billion.