BorgWarner reported a 29 percent jump in net income for the second quarter, to $212 million, thanks in part to growth in its sales of drivetrains in China.
The company upped its forecast for full-year sales -- from a 6.5 percent increase to 7.5 percent -- despite industry signals for a "modest" softening in North American vehicle sales in the second half, CEO James Verrier said in a Thursday morning conference call with shareholders.
Its global sales advanced by nearly $61 million in the quarter, with a 2.6 percent increase in engine sales, its most profitable segment. The company reported 2.9 percent growth in drivetrain sales, in part because of a ramp-up at its dual-clutch transmission plant in China.
The supplier did not break out second-quarter earnings or sales for individual markets, but said China experienced the strongest growth, followed by North America. Europe remained mostly flat, the company said.
First-half operating profit increased 11 percent to nearly $300 million as new business came on stream.
"Despite the shift from diesel engines to gas, we've still seen top-line growth in our diesel engine segment," Verrier said.
New product announcements during the quarter include an electric turbocharger for Daimler and a one-way clutch for Chrysler Pacifica Hybrid vehicles.
Earnings per share beat analysts' expectations of 89 cents for the quarter. The company posted earnings of 96 cents per share, up from 84 cents a year ago.
Verrier said the company will keep an eye on production and inventory levels in the second half of the year, in light of industry concerns.
"Where we are in the North American cycle is pretty key in our minds," he said.