BorgWarner has reported record sales and earnings for the first quarter of 2008.
It said demand for its fuel-efficient technologies in Europe and Asia drove the global powertrain systems supplier’s strong results, despite weak auto sales in North America.
Net profit was up 52% to USD88.7m. Record sales of USD1,498.9m were up 17% from first quarter 2007, boosted by currency gains.
“The year got off to a strong start, with excellent results in Europe and Asia,” said Tim Manganello, Chairman and CEO.
“Despite recession worries, we are seeing stable growth driven by our product technologies that improve fuel economy, lower emissions and provide better vehicle performance. Our sales outside of the U.S. were up 15%, excluding the impact of currency, compared with vehicle production outside of the U.S. that was up only 4%. Our sales in the U.S. declined 4% due to lower U.S. vehicle production, which was down 8%.”
Commenting on the remainder of the year, Manganello pointed to the Company’s reaffirmation of its 2008 earnings guidance in the range of $2.85 to $3.00 per diluted share, which implies earnings growth of 20% to 25% compared with 2007.
“We expect 2008 to be another record year for BorgWarner,” he said. “Consumers want better fuel economy and reduced emissions in every region of the world. These needs are driving demand for BorgWarner’s leading powertrain technologies like turbochargers and dual-clutch transmission modules for which we are launching new programs and expanding capacity. The strength of the platforms we are on has allowed us to more than offset general vehicle schedule declines, and will enable our continued growth to outpace that of the industry in the future.”