DETROIT -- Automotive supplier BorgWarner Inc. lowered its forecast for 2015 profits as its biggest customer, Volkswagen AG, suffers from lower sales following violations of diesel emissions tests.
The company said unfavorable currency exchange rates will also dampen financial results this year.
BorgWarner reported lower net profit of $157 million in the third quarter, or 70 cents per diluted share, compared with profits of $167 million, or 73 cents per diluted share, a year earlier.
Excluding one-time items, BorgWarner's third-quarter profit was 73 cents per share, higher than the 70 cents expected by analysts polled by Thomson Reuters I/B/E/S. The company's third-quarter revenue fell short, at $1.88 billion, versus the estimate of $1.94 billion.
BorgWarner, which produces automotive fuel-saving turbochargers and emissions systems, on Thursday lowered its 2015 full-year net earnings outlook, excluding special items, to $2.95 to $3.00 per share versus the forecast of $2.95 to $3.10 per share it gave three months earlier.
Earlier this year, the company said it would earn $3.35 to $3.55 per share in 2015.
The Michigan-based company said its full-year 2015 net sales will fall between 5 percent and 6 percent, in part because of unfavorable currency exchange rates, from a July 30 forecast of down 2.5 percent to 5.5 percent. Early this year, the company saw 2015 net sales rising 2 percent to 6 percent in 2015.
Volkswagen AG, which has been struggling with an emissions scandal that led to falling sales, on Wednesday reported its first quarterly loss in at least 15 years.
BorgWarner's shares have been downgraded by many Wall Street analysts in the past month, including Morgan Stanley, which dropped its target share price to $37 from $68.
A half year ago, BorgWarner's shares were at $61, and it closed on Wednesday on the New York Stock Exchange at $45.53, which is still higher than a month ago when shares fell below $40.