BorgWarner expects 2003 earnings per share in a range of $US6.20 to $6.35. Company management was expected to provide this guidance on Thursday to motor industry analysts who are meeting in Detroit in conjunction with the North American International Auto Show.
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“We expect to deliver continued growth in 2003 from new business and increased penetration of the faster growing parts of the auto market, even if worldwide auto production is softer than in the past several years,” said chairman and CEO John Fiedler. “Strong demand is expected in Europe for our more fuel-efficient engine and transmission systems, and in North America for computer-controlled four-wheel and all-wheel drive systems that enhance vehicle stability.”
Fiedler said that the company’s guidance is based on assumptions of North American light vehicle production for the year of approximately 16 million cars and trucks, and flat production in Europe and Asia.
“The types of cars and trucks that are made are more important to us than overall production levels,” Fiedler added. “Even with flat production in Europe, that part of the world continues to be our fastest growing market. The high cost of fuel and stricter emissions regulations are driving the need for efficient vehicles with our turbochargers, engine timing systems and new fuel-efficient DualTronic transmission modules being launched this year.
The company was expected to reiterate its expected long-term growth goals of 8% to 11% sales growth, and 13% to 16% earnings growth. In addition, chief financial officer George Strickler was to outline progress in improving margins and boosting return on investment, and the company’s uses of its strong cash flow, including debt reduction, share repurchase and dividend payments.
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