(Adds revenue forecast, analyst estimates, share price)
July 31 Auto-parts maker BorgWarner Inc's
full-year profit forecasts fell short of analyst
expectations, sending its shares down 4 percent in early
BorgWarner raised its 2014 profit forecast for the second
time in six months, to $3.25-$3.35 per share, from its previous
forecast range of $3.15-$3.30 per share.
However, analysts on average were expecting $3.36 per share,
according to Thomson Reuters I/B/E/S.
The company also raised the low-end of its sales growth
forecast by a percent, to between 13 and 15 percent.
At the midpoint of this revised range, BorgWarner's implied
sales of $8.48 billion missed analysts' expectations of $8.52
The company is one of the largest suppliers of turbocharging
technology, which is being increasingly used by automakers,
including its largest customers Volkswagen AG and
Ford Motor Co, to boost fuel economy and meet stricter
mileage and emissions standards.
BorgWarner reported a better-than-expected second-quarter
profit, as demand for its turbochargers rose and its acquisition
of Germany's Gustav Wahler drove sales.
The company bought Gustav Wahler, a maker of exhaust gas
recirculation valves, tubes and thermostats, in December.
Net income attributable to BorgWarner rose to $190.2
million, or 83 cents per share, in quarter ended June 30, from
$174.1 million, or 75 cents per share, a year earlier.
Excluding one-time items, the company earned 89 cents per
share, 2 cents above the average analyst estimate.
Revenue rose 16 percent to $2.2 billion, in line with
The Auburn Hills, Michigan-based company's shares were
trading down 2.7 at $62.76 on the New York Stock Exchange on
The stock had risen about 14 percent up to Wednesday's
close, since the company first announced its full-year forecast
(Reporting by Mridhula Raghavan in Bangalore; Editing by Simon