BorgWarner profit beats Street

DETROIT: Auto parts supplier BorgWarner Inc reported a higher-than-expected quarterly profit on Thursday, driven by increased demand for its fuel-economy technologies.

The company, which makes turbochargers, transmission components and other parts, also raised its forecast for 2011 earnings and revenue. It now expects $4.25 to $4.45 per share on an adjusted basis, on a revenue increase of 25 percent to 28 percent.

It previously forecast 2011 earnings of $3.85 to $4.15 per share on a revenue rise of 19 percent to 23 percent.

BorgWarner has benefited from increased demand from automakers such as Ford Motor Co and Volkswagen AG for its technology to improve engine efficiency and reduce emissions.

That demand has been driven by high gas prices and a move toward stricter emissions standards by the US government.

Auburn Hills, Michigan-based BorgWarner reported a second-quarter net profit of $162 million, or $1.31 per share, up from 68 cents per share a year earlier.

Excluding a patent infringement settlement payment from Honeywell International Inc and an adjustment related to taxes, BorgWarner earned $1.12 per share in the latest quarter.

On that basis, analysts' average forecast was 99 cents, according to Thomson Reuters I/B/E/S.

Sales rose 28 percent to $1.8 billion.

Shares of the Auburn Hills, Michigan-based companies were up 0.8 percent to $72.25 in premarket trading.

Copyright Reuters, 2011