CHICAGO -- Auto-parts maker BorgWarner Inc. on Wednesday posted a 37 percent increase in quarterly profit on higher demand for its engine and drivetrain technology, including turbochargers and transmission components.
The company also tightened its profit outlook for the year.
Net income rose to $61.4 million, or $1.07 a share, in the third quarter, from $44.8 million, or 79 cents a share, in the year-earlier quarter.
Excluding items, earnings were 99 cents a share, a penny above what analysts had expected the Auburn Hills, Michigan-based company to report according to Reuters Estimates.
Sales rose 25 percent from last year to $1.05 billion, meeting analysts' expectations.
North America vehicle output cuts and rising raw materials costs hurt most U.S. auto parts makers in 2005 and helped drive Delphi Corp., Collins & Aikman Corp. and Tower Automotive Inc. into bankruptcy.
BorgWarner tightened its 2005 profit outlook to $4.20 to $4.25 a share, compared with its previous range of $4.15 to $4.31 a share.
"Despite an increasingly difficult market, we intend to hold our guidance for the year within the lower end of our previous guidance range," Chief Executive Timothy Manganello said in a statement. "We expect our growth to continue to outpace the industry."