BorgWarner reported higher quarterly profits, raises 2011 forecast

Article by Christian A., on July 27, 2011

Due to the rising demand for BorgWarner Inc.’s fuel economy systems and technologies, it was able to post higher quarterly profits. In the second quarter, the auto parts supplier took a profit of $1.31 per share compared with $0.68 per share in the same period last year.

If a patent infringement settlement payment from Honeywell and an adjustment related to taxes are excluded, BorgWarner posted earnings of $1.12 per share in the latest period. Sales increased by 28% to $1.8 billion.

BorgWarner’s gains are partly due to the increased demand from automakers such as Ford Motor Co. and Volkswagen AG. They want to acquire technology that is used to boost engine efficiency and reduce emissions.

Pushing up the demand further is the high gas prices as well as a shift toward stricter emissions standards by the U.S. government. In addition, BorgWarner took advantage of a demand shift in Europe toward vehicle types like diesel engines that use more of its products.

BorgWarner said its engine group, which makes up about 70% of sales, recorded a 28% revenue growth during the second quarter. This unit, which led to the 48% increase in earnings, makes turbochargers, emission system components and timing chains.

In addition, BorgWarner is believed to benefit from the latest acquisitions and favorable currency impacts. After citing higher production volumes, BorgWarner raised its 2011 earnings per share forecast, excluding items, to a range of $4.25 to $4.45. This is a significant increase from $3.85 to $4.15 previously.

Topics: borgwarner, profit

If you liked the article, share on:

Pin It

Comments

Recommended

South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Last year was probably Porsche’s best year ever in terms of sales. Their factory in Stuttgart delivered 237,778 cars in total, which represents a six percent increase compared to the...
by - March 26, 2017
Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries