UPDATE 2-BorgWarner profit beats Street; raises forecast
* Q2 adjusted EPS $1.12 vs Street view 99 cents
* Revenue up 28 percent, raises 2011 forecast
* Shares up 0.8 pct in premarket trading (Adds details, background, share move)
DETROIT, July 28 (Reuters) - Auto parts supplier BorgWarner Inc (BWA.N) reported a higher-than-expected quarterly profit on Thursday, driven by increased demand for its fuel-economy technologies.
The company, which makes turbochargers, transmission components and other parts, also raised its forecast for 2011 earnings and revenue. It now expects $4.25 to $4.45 per share on an adjusted basis, on a revenue increase of 25 percent to 28 percent.
It previously forecast 2011 earnings of $3.85 to $4.15 per share on a revenue rise of 19 percent to 23 percent.
BorgWarner has benefited from increased demand from automakers -- such as Ford Motor Co (F.N) and Volkswagen AG (VOWG_p.DE) -- for its technology to improve engine efficiency and reduce emissions.
That demand has been driven by high gas prices and a move toward stricter emissions standards by the U.S. government.
Auburn Hills, Michigan-based BorgWarner reported a second-quarter net profit of $162 million, or $1.31 per share, up from 68 cents per share a year earlier.
Excluding a patent infringement settlement payment from Honeywell International Inc (HON.N) and an adjustment related to taxes, BorgWarner earned $1.12 per share in the latest quarter. On that basis, analysts' average forecast was 99 cents, according to Thomson Reuters I/B/E/S.
Sales rose 28 percent to $1.8 billion.
Shares of the Auburn Hills, Michigan-based company were up 0.8 percent to $72.25 in premarket trading. (Reporting by Clare Baldwin, editing by Gerald E. McCormick)
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