BorgWarner raises '10 view after posting 2Q profit

AUBURN HILLS, Mich.

Auto parts maker BorgWarner Inc. on Friday raised its outlook for the year after posting a second-quarter profit, driven by demand for its powertrain products.

The Auburn Hills, Mich., company now expects to earn between $2.60 and $2.80 per share for the year, compared with a previous expectation of $2.20 to $2.50 per share. Analysts currently expect $2.42. BorgWarner cited a better-than-expected forecast for vehicle production in North America, Europe and China.

In the second-quarter, the company earned $82.8 million, or 68 cents per share, compared with a year-ago loss of $35.9 million, or 31 cents per share. Excluding some one-time items, the company would have earned 78 cents per share in the most recent quarter.

Revenue soared 55 percent to $1.42 billion from $916.2 million a year ago.

Analysts polled by Thomson Reuters expected earnings of 67 cents per share on revenue of $1.32 billion.

Global vehicle production was up 29 percent in the period. BorgWarner attributed its surging sales to new business growth as new product technology, adding to the benefit of an improving economy.

Shares rose $1.10, or 2.6 percent, to $43.58 in morning trading.