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.

If you liked the article, share on:

Topics: borgwarner, profit

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019