BorgWarner raises 2014 forecast as Q1 profits rise 12%
DETROIT (Reuters) -- BorgWarner Inc., which makes a variety of fuel efficient components such as dual-clutch transmissions, raised its 2014 earnings forecast after posting a better-than-expected first-quarter profit.
The company said today its first-quarter net income rose 12 percent to $159.1 million, or 69 cents per share, in the quarter ended March 31, from $142 million, or 61 cents per share. Revenue rose 13 percent to $2.08 billion.
BorgWarner is one of the biggest suppliers of turbocharging technology, which has been increasingly used by automakers including Ford Motor Co and Hyundai Motor Co, to boost fuel economy and meet stricter gas mileage and emissions requirements.
The company now expects full-year earnings of $3.15-$3.30 per share, up from $3.10-$3.25 per share it forecast earlier. Analysts on average were expecting $3.30 per share, according to Thomson Reuters.
BorgWarner also raised its full-year sales growth forecast mainly to include the impact of the acquisition of Germany's Gustav Wahler in December. The sales growth forecast is now 12-15 percent, up from 7 to 11 percent.
Gustav Wahler makes exhaust gas recirculation valves, tubes and thermostats.
Excluding one-time items, BorgWarner earned 83 cents a share during the first quarter -- 3 cents above the average analyst estimate.Contact Automotive News