BorgWarner Inc. posted $163 million, or $1.28 per share, in net income for first quarter of 2012, compared to $129.7 million, or $1.00 per share, in net profit for the same period in 2011. The first quarter profit excludes a $5 million payment for net interest. The company also posted a 10 percent increase in total revenues to $1.91 billion for the January-March period this year.
The company’s strong showing was greatly augmented by higher sales in its drivetrain segment, which posted a 25 percent increase in revenues to $611.4 million. BorgWarner chief executive Tim Manganello attributed its first quarter feat to greater attention given to fuel economy and improved emissions, which greatly increase the demand for the company’s technology.
Manganello said that excluding the effect of currency and 2011 acquisitions and divestitures, BorgWarner’s first quarter net sales grew around 13 percent year-on-year while global vehicle production grew only four percent. Manganello also attributed the company’s strong results for the first quarter of 2012 to its successful costs management, resulting in an operating income margin of 11.8 percent.