UPDATE 2-BorgWarner posts profit, shares edge higher

* Q4 share $0.42 ex-items, vs consensus $0.22

* Q4 rev up 28.6 pct to $1.2 bln

* Shares up 4 cents

DETROIT, Feb 11 (Reuters) - BorgWarner Inc's (BWA.N) quarterly profit trounced Wall Street expectations supported by auto industry production increases and demand for turbochargers and other components.

BorgWarner expects a recovery in North American industry production over the last half of 2009 to extend into 2010, supporting an outlook that is still tempered by uncertainty surrounding vehicle demand in Europe.

The parts supplier reported net income of $52.7 million, or 45 cents per share, in the fourth quarter, compared with a net loss of $81.4 million, or a 70 cents per share loss, a year earlier. Sales rose 28.6 percent to $1.2 billion.

Excluding one-time items, BorgWarner reported earnings of 42 cents per share. Analysts on average expected BorgWarner to post earnings of 22 cents per share, according to Thomson Reuters I/B/E/S.

U.S. auto industry sales fell to a 27 year low in 2009, pressuring automakers and suppliers, but the U.S. government's "cash for clunkers" program boosted sales in July and August and prompted production increases into the fourth quarter.

BorgWarner's focus on components that can improve fuel economy and performance place it in a growth area of the auto industry with carmakers aiming to meet stricter mileage and emissions standards over the next several years.

The company expects sales growth of 15 percent to 19 percent in 2010. It expects 2010 earnings per share of $1.40 to $1.70. Analysts on average expect the company to report 2010 earnings of $1.63 per share.

Shares of BorgWarner were up 4 cents at $36.27 in early trading on the New York Stock Exchange. Through Wednesday the stock had risen about 20 percent since the start of the fourth quarter, while the S&P 500 index had risen about 1 percent. (Reporting by David Bailey; Editing by Derek Caney)