July 31, 2014 / 1:50 PM / in 3 years

UPDATE 1-BorgWarner forecasts 2014 earnings below expectations

(Adds revenue forecast, analyst estimates, share price)

July 31 (Reuters) - Auto-parts maker BorgWarner Inc’s full-year profit forecasts fell short of analyst expectations, sending its shares down 4 percent in early trading.

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 billion.

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 analysts’ expectations.

The Auburn Hills, Michigan-based company’s shares were trading down 2.7 at $62.76 on the New York Stock Exchange on Thursday.

The stock had risen about 14 percent up to Wednesday’s close, since the company first announced its full-year forecast in January. (Reporting by Mridhula Raghavan in Bangalore; Editing by Simon Jennings)

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