BorgWarner Inc. on Monday said a change in accounting methods led to a first-quarter loss of $237.5 million.
Without that required change in the way BorgWarner reported goodwill, the supplier would have reported a net income of $31.5 million. Net income in the year-ago quarter was $21.1 million.
Increases in North American vehicle production and European demand for the company's engine products were positive factors for the company's first quarter. BorgWarner's sales for the period were $633.9 million. That was up 4.5 percent from $606.8 million in the year-ago quarter.
Buoyed by stable North American production, continued European demand for BorgWarner's engine products and new business, CEO John Fiedler said he is confident the company will meet its full-year earnings target of $4.90 to $5.10 per share. That would translate into $130.8 million to $136.2 million in net income, excluding special items.
The supplier in 2001 had net income of $85.4 million, excluding one-time items.
BorgWarner, with 2001 North American OEM auto parts sales of $1.5 billion, ranks No. 22 on the Automotive News list of the Top 150 OEM parts suppliers to North America.