Nov 5 Automotive engine and drivetrain
components maker BorgWarner Inc expects net new
powertrain business of $2.9 billion for the next three years, as
automakers increasingly rely on fuel-saving technologies such as
Asia will likely contribute about half of the company's new
business. Nearly a third of new sales will be in China,
Analysts on average were expecting BorgWarner's 2013
revenues to be $7.45 billion, according to Thomson Reuters
BorgWarner said it expects adoption of powertrain technology
in other parts of the world to outpace Europe in the next few
"Improving fuel economy, lowering emissions and enhancing
the driving experience are increasingly important strategic
initiatives for automakers around the world," Chief Executive
James Verrier said in a statement.
Tuesday's forecast is about 26 percent higher than
BorgWarner's previous three-year forecast issued in 2012.
The company said it expects 80 percent of its new business
to come from engine-related products, including turbochargers,
ignition systems, emissions products.
The U.S. Department of Energy estimated that turbochargers -
which are fans that generate extra power by forcing more
compressed air into an engine's cylinders - can improve fuel
efficiency by 7.5 percent.
BorgWarner raised its full-year earnings forecast last week,
after reporting a 65-percent jump in quarterly profit.
BorgWarner shares were up about 1 percent at $103.95 on the
New York Stock Exchange in mid-day trading on Tuesday. The stock
has risen about 44 percent from the start of the year to
Monday's close, outpacing the larger S&P 500 Index.