BorgWarner has reported 2004 earnings of $3.86 per share on sales of $3.5 billion, delivering record results in spite of flat car and truck production in North America and modest growth elsewhere in the world.

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Strong demand for its technology in Europe and Asia, along with continued cost efficiencies, helped boost results, the company said in a statement.


For fourth quarter 2004, sales were $US889.2 million, up 11% from $798.8 million in fourth quarter 2003, and net income was $67.7 million, or $1.19 per share, compared with $50.0 million, or $0.90 per share in last year’s fourth quarter. Fourth quarter 2004 net income includes year-end adjustments to tax accounts of $11.4 million, or $0.20 per share.


Sales for 2004 totaled $3.5 billion compared with $3.1 billion in 2003 and net income was $218.3 million, or $3.86 per share, compared with $174.9 million, or $3.20 per share in 2003.


The increase in the euro and other currencies added $114.3 million to sales in 2004 compared with 2003, and $11.0 million to net income.

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Operating income was $81.9 million or 9.2% of sales in the 2004 fourth quarter and $309.1 million or 8.8% for the full year compared with $76.0 million or 9.5% of sales in the 2003 fourth quarter and $269.9 million or 8.8% for the 2003 full year.


Research and development spending was $32.4 million in the quarter and $123.1 million for the full year, versus $30.8 million and $118.2 million in the same periods in 2003.


“We had a strong fourth quarter and another outstanding year,” said chairman and CEO Tim Manganello. “Once again, we delivered growth levels that significantly outpaced worldwide car and truck production because our technology is targeted at the fastest growing parts of the market.”


The company reiterated that it expects 2005 earnings per share in a range of $4.30 to $4.55, which includes assumptions about the company’s Beru acquisition in a range of $0.15 to $0.30 per share, and expectations of $4.15 to $4.25 per share on the company’s base business as a comparison to 2004 expectations.


“The overall trends driving our growth continue to be strong,” said Manganello.  “On our base business, we believe that we can achieve sales growth in a range of 8% to 10% that will propel earnings growth in excess of 10%, even given current industry assumptions for almost flat production. The expected accretion of the Beru acquisition will further add to our base business growth.”