BorgWarner Beats 3Q EPS But Guides Lower

BorgWarner Inc. BWA reported third quarter 2014 earnings Thursday.

The company reported GAAP net earnings of $0.73 per diluted share. Excluding non-comparable items, net earnings were $0.79 per diluted share, $0.01 above estimates.  This compares to EPS of $0.70 reported in the same period of 2013.  

Net sales were $2.032 billion in the quarter, slightly below the average estimate of $2.06 billion and an increase of 13 percent compared with the third quarter of 2013.

Operating income was $238 million. Excluding the $16 million pretax impact of restructuring and pension settlement activities, operating income was $254 million, or 12.5 percent of net sales.

“Our third quarter results reaffirm the benefits of our focus on fuel efficient powertrain technologies,” said James R. Verrier, President and Chief Executive Officer,

2014 guidance was adjusted due to weakening foreign currencies. Net sales growth is now expected to be 12 percent to 13 percent compared with 2013, down from 13 percent to 15 percent previously. As a result, the company is also lowering its net earnings guidance to a range of $3.23 to $3.28 per diluted share from a previous range of $3.25 to $3.35 per diluted share. Both net earnings guidance ranges exclude non-comparable items.

BorgWarner Inc. traded at $53.01 in the premarket, down 6.77 percent.