BorgWarner (BWA) Beats Estimates, Sales Jump 37%

BorgWarner Inc. (NYSE: BWA) released financial results on Wednesday morning that easily beat Wall Street estimates.BorgWarner Inc announced that its 3rd quarter earnings rose to 87 cents per share, up from 15 cents per share a year earlier.Excluding special items, the company reported earnings of 71 cents per share.Revenue surged to $1.411 billion, up from $1.028 billion a year earlier.According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of 63 cents per share, on revenue of $1.28 billion.Chairman and CEO Timothy Manganello said, "New business growth drove our third quarter results as our leading-edge powertrain technology continued to penetrate the global market. Our sales were up 37% in third quarter 2010 compared with third quarter 2009, or 44% excluding the impact of currency, while global vehicle production was up 10%. We grew in every major region of the world, most notably in China where our sales were up nearly 70%. Our sales in China now represent approximately 6% of our consolidated sales and have nearly doubled from a year ago. Favorable macroeconomic trends, such as the continued volume shift in Europe toward vehicles with higher BorgWarner content, including diesels, also drove higher sales. A continued focus on execution at our operations resulted in a strong operating income margin of 8.7% in the third quarter, up from 2.7% a year ago."The company raised its full year adjusted earnings guidance to a range of $2.85 to $2.95 per share.BorgWarner Inc. (BWA) finished the previous trading day at $53.81 per share. The consensus price target of analysts covering the company's stock is $55.15 per share.Read more from Benzinga's Company news.