After what it called “a challenging third quarter,” BorgWarner has reported Q3 net income of $US39.2m, or $0.68 per share, compared with $61.4m, or $1.07 per share a year ago.
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Sales rose 1% to $1,059.8m.
Q3 2006 included $3.2m of pre-tax expense related to new accounting rules, a $3.6m after-tax gain related to a previous divestiture and $8.4m of North America restructuring costs. Q3 2005 net income included $3.1m of adjustments.
For the first nine months of 2006, net income was $170.7m, or $2.95 per share, compared with $174.9m, or $3.05 per share in 2005 on sales up 4% to $3,383.7m. The first nine months of 2006 included $17.5m of cost adjustments and a $3.6m after-tax gain and net income included a $3.8m of special items.
Sales in the US were down 14% compared with third quarter 2005, while sales outside the US grew 13%.
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By GlobalDataThe company reiterated its 2006 full year guidance range of $3.95 to $4.10 per share, excluding a one-time third quarter cost of $0.15 per share related to restructuring.
“This was a very challenging quarter for BorgWarner as significantly lower production in North America, specifically in the light truck and sport-utility segment, depressed our operating results,” said chairman and CEO Tim Manganello. “Our sales were up a modest 1% in the quarter, compared with the same period in the prior year, as North American vehicle production was down 8% and global vehicle production was up 3%.
Margins are expected to return to historical levels in 2007, BW added.
