Automotive Supplier BorgWarner Achieves Record Earnings in First Quarter

May 2, 2008
Fuel-efficient technologies in Europe and Asia drive growth.

Despite a weak auto market in North America, BorgWarner Inc. reported record sales and earnings for the first quarter of 2008. Powering that growth was demand for its fuel-efficient technologies in Europe and Asia, the Auburn Hills, Mich.-based powertrain systems supplier said May 2.

Sales were $1.4989 billion, a 17% increase over the same quarter a year ago, or up 8% excluding currency. Net income for the quarter was $88.7 million, or 75 cents per diluted share, compared with $58.4 million in the first quarter of 2007.

BorgWarner also noted that the impact of foreign currencies, most notably the euro, increased sales by $115.3 million in the first quarter compared with the same quarter a year ago.

Looking ahead, the company reaffirmed its full-year earnings guidance in the range of $2.85 to $3 per diluted share, or earnings growth of 20% to 25% over 2007. The strength of the platforms we are on has allowed us to more than offset general vehicle schedule declines, stated Tim Manganello, BorgWarner chairman and CEO.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!