Auburn Hills, Michigan, October 28, 2011 – BorgWarner Inc. (NYSE: BWA) today reported third quarter 2011 earnings of $1.15 per diluted share, a new quarterly record for the company. Sales were up 27% from third quarter 2010, while global vehicle production was up approximately 5%.
Third Quarter Highlights:
Third Quarter Performance: “Our business continued to thrive in the third quarter,” said Timothy Manganello, Chairman and CEO of BorgWarner. “The industry's steadfast focus on fuel economy and improved emissions continued to drive the adoption of BorgWarner technology around the world, and above market growth for our company. Excluding the impact of currency and sales related to the acquisition of the Traction Systems division of Haldex, which closed in first quarter 2011, our sales were up approximately 16% in the third quarter, compared with 5% growth in global vehicle production. While growing our sales in the quarter, we also successfully managed costs, which resulted in a record quarterly operating income margin of 11.1%.”
2011 Outlook: Today the company refined its 2011 earnings guidance range, excluding non-recurring items, to $4.35 to $4.45 per diluted share, at the high end of the previous guidance range of $4.25 to $4.45 per diluted share. Revenue growth in 2011 is now expected to be 26% to 27% compared with 2010, within our previous guidance range of 25% to 28%. “While the markets have been evaluating macroeconomic events and assessing downside risk to vehicle production, the outlook for our business has remained strong," Manganello said. "Our growth is tied to the industry's adoption of leading edge powertrain technology, a long-term trend that will occur despite near-term market conditions. This trend, coupled with good cost controls at our operations, causes us to be optimistic about our business for the remainder of 2011 and beyond." Please download the complete Press Release on the right side.