CHICAGO -- Auto parts maker BorgWarner Inc. on Thursday posted lower second-quarter earnings due to a charge to settle claims of contamination at a plant it acquired.
Net income fell to $35.9 million, or 63 cents per share, from $54.7 million, or 97 cents per share, a year earlier.
Excluding the charge to settle personal injury and property damage claims related to alleged environmental contamination at a Mississippi site, BorgWarner earned $1.13 per diluted share, meeting analysts' expectations.
Sales rose 24 percent to $1.11 billion, Auburn Hills, Michigan-based BorgWarner said. Engine group sales rose 38 percent to $773.9 million, while drivetrain group sales rose 1 percent to $350.7 million.
BorgWarner's diverse customer base and focus on in-demand technology for emissions and engine performance has helped to ease the impact from North American light vehicle output cuts and higher steel costs in recent quarters.
BorgWarner in January completed the purchase of a majority stake in Beru AG, adding its diesel engine starter and tire pressure monitoring technology to the portfolio.
BorgWarner backed its 2005 earnings per share forecast of $4.27 to $4.43, excluding items, while the analysts' consensus forecast is for $4.39. It also backed its net earnings view of $4.15 to $4.31 per share.
BorgWarner ranked No. 22 on the Automotive News list of top 150 original equipment suppliers to North America with original equipment sales of $1.91 billion in 2004.