BorgWarner 3Q net income falls 29 pct on charges
AUBURN HILLS, Mich. (AP) — Automotive parts supplier BorgWarner Inc. said Wednesday its third-quarter net income fell 29 percent, weighed down by restructuring and other charges and the stronger dollar.
The company also lowered its full-year guidance due to the weak economy in Europe. But CEO Timothy Manganello sounded a positive note about the quarter.
"Despite declines in light vehicle production in Europe, our largest market, the focus on fuel economy and improved emissions around the globe continued to drive growth for BorgWarner," he said in a statement.
Net income after preferred dividends fell 29 percent to $101.1 million, or 85 cents per share. That compares with $141.6 million, or $1.15 per share, last year. Excluding a loss from disposal actions, restructuring expenses and tax adjustments, adjusted net income totaled $1.19 per share. That matched analyst expectations, according to FactSet.
Revenue fell 5 percent to $1.7 billion from $1.79 billion. Analysts expected $1.81 billion. Excluding the stronger dollar and sold off assets, revenue rose 2 percent.
Revenue from BorgWarner's largest market, light vehicle production in Europe, fell 6 percent.
For the full year, the company now expects net income of $4.90 to $5 per share, excluding one-time items, down from prior guidance of $5.05 to $5.25 per share. Analysts expect $5.10 per share, with estimates ranging from $4.86 to $5.25.
The company now expects revenue to be flat to up 1 percent, from prior guidance of a 4 percent to 6 percent increase. That implies revenue of $7.11 billion to $7.18 billion. Analysts expect $7.42 billion, with estimates ranging from $7.23 billion to $7.56 billion.
In morning trading, BorgWarner shares slipped 3 cents to $63.68. The stock has traded between $60.17 and $67.45 in the past 52 weeks.