From AFX News Limited

SOUTHFIELD, MI -- Automotive supplier Lear Corp. said Thursday third-quarter loss narrowed from the year-ago period, which was burdened by restructuring charges.

The maker of car seats and interior components reported a loss of $74 million, or $1.10 per share. The period includes $46.1 million in costs related to the sale of Lear's European business.

Analysts were looking for a loss of 58 cents per share, according to Thomson Financial.

Last year, the company posted a loss of $750.1 million, or $11.17 per share. That quarter included a goodwill impairment charge of $9.98 per share.

Sales rose 2 percent to $4.07 billion from $3.99 billion last year, exceeding the Wall Street average estimate of $4 billion. The gain came from additional international business, partially offset by lower North American and European demand.

The company had negative free cash flow of $48.2 million in the quarter.

Lear has cut capacity and sold some businesses to align with lower car production in North America.

The company expects 2006 pretax earnings before items between $345 million and $375 million. The company anticipates restructuring costs will total $105 million to $115 million. Sales are still pegged at $17.7 billion, in line with Wall Street's estimate for $17.68 billion.

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