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Lear Says GM Strikes Will Hurt Its Earnings

July 01, 1998| From Bloomberg News

SOUTHFIELD, Mich. — Lear Corp., maker of automobile seats and interior car parts, said Tuesday that it expects labor strikes at General Motors Corp. to cut 14 cents a share from its second-quarter earnings.

The company said strikes at two GM plants in Flint, Mich., which have crippled the world's largest auto maker's North American production, will hurt Lear until they are settled.

Lear, based in Southfield, has shut 10 seating plants and one interior-parts plant, idling about 2,800 workers in six states and Ontario, Canada, since the first GM strike began June 5.

The company had 1997 second-quarter net income of $61.1 million, or 89 cents a share, on sales of $1.84 billion.

Lear's shares rose 38 cents to close at $51.31 on the New York Stock Exchange. The stock has fallen 1.6% since the first strike began.

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