BorgWarner Inc. posted a 65-percent jump in net income, attributable to the company, in the third quarter of 2013 to $166.8 million, or $1.45 per share, from $101.1 million, or 85 cents per share, in the same period in 2012. The maker of auto turbochargers and emission systems logged a 6.5-percent jump in revenues to $1.81 billion in the third quarter of 2013.
BorgWarner chief executive James Verrier remarked that operational efficiency and cost controls allow the company to log a strong operating income margin of 12.5% in the third quarter of 2013, noting that the focus on fuel economy and improved emissions continued to drive growth for the company. BorgWarner revised upwards its 2013 earnings forecast to a $5.55-$5.65 per share. On average, analysts were expecting the company to post $5.54 per share, according to Thomson Reuters.
BorgWarner, however, revised downwards its 2013 forecast 3 percent to 4 percent, and updated upwards its 2013 operating margin expectation to 12 percent or better. BorgWarner’s engine division posted a 3.6-percent growth in revenue to $1.2 billion in the quarter and a surge in operating margin to 16.2 percent.
The engine group – accounting for two-thirds of sales -- supplies turbochargers and exhaust-gas recirculation coolers as well as variable-cam timing devices. BorgWarner’s drivetrain group, meanwhile, posted a 13.1-percent hike in third-quarter revenue to $604 million, with operating margin jumping to 10.9 percent.