In the first three months of 2011, the profits of BorgWarner Inc. increased by 63% to $124.5 million. The company attributed this improvement to the increasing demand for its advanced powertrain technology.
According to a company statement, sales for the quarter that ended on March 31 climbed by 34.5% compared to the same period last year to $1.73 billion. In the first quarter, BorgWarner also was able to repurchase about 2.5 million shares of its common stock.
CEO Timothy Manganello said BorgWarner had a strong start for the year as it is able to grow faster than the market due to the “growing demand for [its] advanced powertrain technology.”
Its drivetrain segment posted net sales of $486.4 million in the first quarter, a 26.1% increase from $385.8 million in the quarter the previous year. BorgWarner said that this was caused by the increase in dual-clutch transmission module sales in Europe, robust four-wheel drive system sales in Asia, while throughout the world, it had higher traditional automatic transmission component sales.
Another factor cited was the January acquisition of the traction systems unit of Sweden-based Haldex AB. BorgWarner raised its 2011 revenue growth forecast from 16-20% to 19-23%.
Thomson Reuters I/B/E/S said that on a per-share basis, BorgWarner recorded earnings of $1 a share, above the analysts' average estimate of 96 cents. BorgWarner said that the supply disruptions related to the March 11 disaster in Japan will have a "limited" impact.