BorgWarner booked a net profit in the first quarter of $124.5m, or $1.00 per share, compared with $76.2m and $0.63 a year ago. Sales rose 34.5% to $1,730.4m.
The 2011 earnings guidance remains $3.85 to $4.15 per share. Revenue growth in 2011 is now expected to be 19% to 23% compared with 2010, up from the previous guidance range of 16% to 20%, primarily due to the Haldex Traction Systems acquisition that closed in January. The acquisition is expected to have minimal impact on 2011 earnings as purchase accounting adjustments will likely offset most of the operating income generated by the business.
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“Clearly there is great deal of concern regarding the disasters in Japan and their impact on the global automotive market,” the company said. “While uncertainty remains, we expect that the impact on our business will be limited. Vehicle demand remains strong in our largest markets and should offset the volume declines in Japan.”
