BorgWarner has posted a 25% surge in third-quarter profit as sales jumped, bolstered by demand in Europe and Asia and cost reductions.
The Associated Press (AP) said the latest results show the Chicago-based maker of engines, drivetrains and other auto parts is able to offset rising prices for raw materials and declining automotive production with strong global sales.
Net income was $US44.8 million, or 79 cents a share, for the period, compared with $35.9 million, or 65 cents a share, a year ago.
Analysts polled by Thomson First Call saw BorgWarner reporting third-quarter earnings of 75 cents a share, Associated Press said. Sales for the latest quarter rose to $839.8 million from $725.2 million a year ago.
General expenses fell 6% to $77.4 million. The company reportedly said manufacturing expenses fell by an unspecified amount despite higher commodities prices.
AP said that strong demand from Asian and European auto makers boosted engine sales by 18% to $532.7 million. Turbochargers, timing systems and emissions products are selling well in those regions. Drivetrain sales were up 12% to $318.7 million from $284.3 a year ago.
David Leiker, an analyst with Baird US Equity Research, told the Associated Press BorgWarner is in the enviable position of having products auto makers need to reduce emissions and improve performance. As an added bonus, it faces no major competitor in all three major regions for each of its key products, the analyst said.
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