BorgWarner Inc., the turbocharger and emissions systems supplier, today reported a 12.5 percent jump in first-quarter net income from a year earlier to $178.9 million. But the company’s revenue took a 4.8 percent dive to $1.98 billion due to the impact of foreign currencies.
The currency impact decreased revenue growth by about 11 percent from a year earlier, a company statement said.
Excluding currency exchange rates and recent acquisitions, revenue grew 3 percent, the statement said.
Operating income reached $259.6 million in the first quarter, an 11 percent increase from a year earlier.
“Outstanding operating performance drove our first quarter results,” BorgWarner CEO James Verrier said in the statement. "The demand for our advanced powertrain technology, designed to improve fuel economy, emissions and vehicle performance, continued around the globe, but our growth was temporarily impacted by an unfavorable mix of light vehicle production in North America and launch delays in Asia.
“We believe these issues are short term and should not impact our full year growth expectations."
Earnings per diluted share rose to 79 cents in the first quarter, from 69 cents a year earlier.
Revenue in BorgWarner’s engine and drivetrain segments fell during the quarter. Engine revenue slipped 2.2 percent from a year earlier to $1.38 billion, and drivetrain revenue fell 10 percent to $611.2 million.
Adjusted net income in the divisions also declined. Engine net income was $230.4 million, down 0.6 percent, and drivetrain net income was $71 million, down 12 percent.
The company expects a revenue loss of 0 to 4 percent for the full-year 2015 because of weakening foreign currencies. Previously, the BorgWarner forecasted growth of 2 to 6 percent for the full year.
BorgWarner, of suburban Detroit, ranks No. 32 on the Automotive News list of the top 100 global parts suppliers, with worldwide sales to automakers of $7.44 billion in 2013.