SOUTHFIELD, MI -- Lear has announced an improvement in its full-year 2007 financial outlook reflecting increased core operating earnings. The company has reaffirmed its preliminary financial outlook for 2008 and updated its restructuring plan to reflect the accelerated timing of certain actions.

Lear now expects income before interest, other expense, income taxes, restructuring costs and other special items (core operating earnings) this year of about $750 million, compared with its previous outlook of $680 million. The company said the increase reflects stronger-than-expected production schedules in North America in the fourth quarter, continuing strong operating performance and the benefits from restructuring actions as well as the timing and outcome of several commercial items. Free cash flow for 2007, previously forecasted at about $350 million, is expected to benefit from the increased operating earnings, offset in part by higher cash restructuring costs.

Additionally, based on current full-year industry production estimates, Lear is reaffirming its outlook for 2008 core operating earnings of about $680 million. While some of the company's major customers have announced reductions in North American production schedules for the first quarter of 2008, the company said it believes continuing strong operating performance globally, sales growth in markets outside of North America and ongoing savings from the company's restructuring initiatives will mitigate the adverse impact.

Lear now expects to incur about $180 million in restructuring costs this year, an increase of $55 million from the previous estimate. The increase is primarily related to the pull-ahead of certain facility closure and severance actions in Canada and Western Europe that were planned for 2008 and 2009.

For more information about Lear, go to: http://www.lear.com.