BorgWarner Q4 Profit Rises - Update

(RTTNews) - Auto-parts maker BorgWarner Inc. (BWA) Thursday reported an increase in profit for the fourth quarter, driven largely by a 10 percent revenue growth. Earnings for the quarter came in ahead of analysts' expectations, but revenues fell short of estimates. Moving ahead, the company maintained its financial outlook for the full year 2014.

The Auburn Hills, Michigan-based company's fourth-quarter profit climbed to $141.4 million or $0.62 from $121.2 million or $0.51 per share last year.

Excluding non-recurring items, adjusted earnings rose to $0.79 per share from $0.58 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales rose to $1.885 billion from $1.719 billion in the prior year. Wall Street expected revenues of $1.90 billion.

Engine segment net sales rose to $1.266 billion from $1.167 billion in the prior-year quarter. Excluding the impact of foreign currencies and 2012 dispositions, net sales advanced 8 percent from a year ago. The growth is attributed to higher sales of turbochargers, engine timing devices and EGR coolers globally.

Drivetrain segment net sales increased to $628 million from $559 million in the similar quarter last year. Excluding the impact of foreign currencies, sales grew 10 percent from a year ago, due mainly to higher sales of all-wheel drive systems, traditional transmission components and dual clutch transmission modules.

Moving ahead, the company maintained its outlook for the full year 2014. BorgfWarner continues to see earnings of $3.10 to $3.25 per share with organic sales growth of 7 to 11 percent. Analysts currently expect earnings of $3.23 per share for the year.

BWA is currently trading at $56.39, up $0.95 or 1.71%, on the NYSE.