Lear Updates Full-Year 2008 Financial Outlook

SOUTHFIELD, Mich., June 4 -- Lear Corporation today announced revisions to its 2008 financial outlook based on lower North American vehicle production and increased commodity costs.

Subsequent to the 2008 financial outlook the Company provided on April 29th, Lear's major customers, industry forecasting services and others have announced downward revisions in their estimates for 2008 North American vehicle production based on lower sales rates for full-size pickup trucks and large sport utility vehicles. In response to these recent announcements, Lear is revising its 2008 forecast for North American industry production from approximately 14.1 million vehicles to approximately 13.8 million vehicles. In addition, raw material costs, particularly costs related to steel, have continued to increase.

As a result, Lear is revising its sales outlook for 2008 downward to approximately $15.3 billion, from the previous outlook of $15.5 billion, and lowering income before interest, other expense, income taxes, restructuring costs and other special items (core operating earnings) to a range of $600 to $640 million from the previous range of $660 to $700 million. In addition, Lear is increasing its estimated restructuring investment for 2008 to about $125 million. The revised outlook for full-year 2008 free cash flow is approximately $200 million. Lear is continuing to evaluate and aggressively implement cost reductions and restructuring actions to mitigate the impact of lower production volumes and rising commodity prices. Furthermore, the production realignment initiatives recently announced by certain North American manufacturers are anticipated to require further restructuring investments in future years.

"Industry conditions in North America have continued to be challenging, with the lowest expected production volumes since the early 1990s and unprecedented increases in raw material and energy costs," commented Bob Rossiter, Lear's Chairman, President and CEO. "Like our customers, we are continuing to aggressively realign our capacity and implement structural cost reductions to improve our longer-term competitiveness. We are also expanding our operations outside North America, which represented approximately 55% of our net sales in 2007."

Lear Corporation is one of the world's largest suppliers of automotive seating systems, electrical distribution systems and related electronic products. The Company's world-class products are designed, engineered and manufactured by a diverse team of 91,000 employees at 215 facilities in 35 countries. Lear's headquarters are in Southfield, Michigan, and Lear is traded on the New York Stock Exchange under the symbol [LEA].