Auto parts maker BorgWarner Inc (BWA.N) raised its 2014 earnings forecast after posting a better-than-expected first-quarter profit due to strong demand for turbochargers, all-wheel drive systems and dual clutch transmission modules.
The company expects full-year earnings of $3.15-$3.30 per share, up from $3.10-$3.25 per share it forecast earlier. Analysts on average were expecting $3.30 per share, according to Thomson Reuters I/B/E/S.
BorgWarner is one of the biggest suppliers of turbocharging technology, which has been increasingly used by automakers including Ford Motor Co (F.N) and Hyundai Motor Co (005380.KS), to boost fuel economy and meet stricter gas mileage and emissions requirements.
BorgWarner also raised its full-year sales growth forecast mainly to include the impact of the acquisition of Germany's Gustav Wahler in December. The sales growth forecast is now 12-15 percent, up from 7 to 11 percent.
Gustav Wahler makes exhaust gas recirculation valves, tubes and thermostats.
Net income attributable to BorgWarner rose 12 percent to $159.1 million, or 69 cents per share, in the quarter ended March 31, from $142 million, or 61 cents per share.
Excluding one-time items, BorgWarner earned 83 cents a share, 3 cents above the average analyst estimate.
Revenue rose 13 percent to $2.08 billion, still short of the $2.09 billion estimate.
The Auburn Hills, Michigan-based company's shares closed at $62.14 on the New York Stock Exchange on Wednesday.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Rodney Joyce and Don Sebastian)