CHICAGO (AP) _ BorgWarner Inc.’s second-quarter profit fell slightly, but was well ahead of Wall Street expectations for the maker of power-train and transmission systems.
Higher demand for engine technology and four-wheel drive systems more than offset the impact of lower industry production, BorgWarner said Monday.
The company said its net income for the second quarter decreased to $44.8 million, or $1.65 a share, from $45.7 million, or $1.70 a share, in the same period a year ago.
Sales rose 8 percent to $769.5 million from $712.4 million.
Analysts surveyed by Thomson First Call had forecast, on average, second-quarter earnings of $1.54 per share on sales of $746.8 million.
BorgWarner also reiterated its 2003 outlook and said it continues to see strong sales increases for its turbochargers and four-wheel drive systems.
For 2003, the company said it still anticipates earnings of $6.20 to $6.35 a share, compared with Wall Street’s mean estimate of $6.20 a share and 2002 earnings of $5.58 a share.
``BorgWarner’s performance continues to outpace global auto industry growth because our powertrain technology serves the fastest-growing areas of the market,″ Chief Executive Timothy Manganello said in a release.
After opening strongly and hitting a new 52-week high of $69.40, shares of BorgWarner fell $3.83, or 5.6 percent, from Friday’s close, ending at $64.23 on the New York Stock Exchange.