CHICAGO (Reuters) -- Auto parts maker BorgWarner Inc. on Thursday said it expects 2005 earnings growth of more than 10 percent, excluding a recent acquisition, on demand for fuel-efficiency and emissions-reduction equipment.
The company, which makes turbochargers and other components for engines and drive trains, said it expects to benefit in North America from a broad base of automaker customers, while growth from customers such as Hyundai will create demand in Asia.
BorgWarner said it expects 2005 earnings per share in a range of $4.15 to $4.25. Including its acquisition of a stake in Beru AG, a German maker of diesel engine starters, the company said it sees 2005 earnings from $4.30 to $4.55 share.
Analysts on average expect BorgWarner to earn $4.24 per share in 2005 with revenue of about $3.99 billion, according to Reuters Estimates.
BorgWarner said it expects sales growth of 8 percent to 10 percent on its base business excluding Beru, even with industry assumptions for almost flat production.
The 2005 forecast is based on assumptions for North American production of about 16 million cars and light trucks and for modest growth in Japan, Korea and Europe, it said.
"In Europe, we expect strong demand for our more fuel-efficient engine and transmission products and systems, including those from Beru," Chief Executive Timothy Manganello said in a statement.
BorgWarner in October had said it expected 2004 earnings per share of $3.60 to $3.70 even with rising raw materials costs and North America fourth-quarter production cuts.
BorgWarner has not completed the valuation for its purchase of a 63 percent stake in Beru for 367 million euros to add to its diesel technology business. It has a tender offer out for the remaining shares.
Beru results will be consolidated with the BorgWarner engine group starting in the first quarter, BorgWarner said.