(Reuters) - Automotive engine and drivetrain components maker BorgWarner Inc (BWA.N) expects net new powertrain business of $2.9 billion for the next three years, as automakers increasingly rely on fuel-saving technologies such as turbochargers.
Asia will likely contribute about half of the company’s new business. Nearly a third of new sales will be in China, BorgWarner said.
Analysts on average were expecting BorgWarner’s 2013 revenues to be $7.45 billion, according to Thomson Reuters I/B/E/S.
BorgWarner said it expects adoption of powertrain technology in other parts of the world to outpace Europe in the next few years.
“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 .SPX.
Reporting by Mridhula Raghavan in Bangalore; Editing by Joyjeet Das