DETROIT -- BorgWarner Inc. foresees a 28 percent jump in new business for its powertrain products over the next three years amid surging demand for fuel-efficient engine and transmission technologies.
The suburban Detroit maker of turbochargers and dual-clutch transmissions said today its backlog of new business for powertrain parts stands at $2.3 billion for 2011 through 2013, 28 percent higher than the three-year forecast the company issued a year ago.
Engine-related products such as turbochargers and ignition systems represent 77 percent of the backlog, the company said. The rest is expected from drivetrain products, such as BorgWarner’s dual-clutch transmissions and all-wheel-drive technologies.
“Greater demand for products that increase fuel economy and reduce emissions [is] driving the improvement,” Robert W. Baird & Co. analyst David Leiker wrote today in a research note.
Fueling the demand for engine products are turbochargers for gasoline direct-injected engines. BorgWarner expects the global market for gas engine turbochargers to nearly triple over the next five years to more than 10 million by 2015.
The company’s dual-clutch technology accounts for 13 percent of the expected new business. BorgWarner forecasts nearly 400 percent global growth in dual-clutch transmissions to nearly 6 million units by 2015.
Europe accounts for nearly half of the supplier’s overall backlog, as the continent “remains the leader in the adoption of new powertrain technology,” BorgWarner CEO Tim Manganello said in a statement.
The Americas account for about 25 percent of the backlog -- up from 20 percent in the previous three-year forecast -- while Asia represents 30 percent.
Improving vehicle production forecasts are driving BorgWarner’s backlog higher, as is demand for its green technologies, said Brett Hoselton, an analyst with Keybanc Capital Markets Inc.
“We remain impressed with [BorgWarner’s] ability to sustain double-digit organic revenue growth,” Hoselton said in a research note.
BorgWarner ranks No. 36 on the Automotive News list of the 100 top global suppliers, with estimated worldwide sales to automakers of $3.96 billion in 2009.