BorgWarner: Continued Growth Expected in 2005
BorgWarner Inc has reported 2004 earnings of $3.86 per share on sales of $3.5 billion (£1.9 million). In the fourth quarter of 2004 the company also recorded sales of $889 million (£477 million) up 11 per cent compared with the same time in 2003. BorgWarner reports that this equates to an operating income margin of 10 per cent.
While the company was obviously pleased with the results, market watchers were less impressed, but still positive. Deutsche Bank analysts have described BorgWarner’s fourth quarter results as “respectable in the context of a very challenging environment.” The report notes that the company’s results in the Engine group were strong, mostly reflecting turbocharger growth. “We believe that growth in the Engine group will be sufficient to drive 2005 earnings. We find it impressive that the company is confident that it can post flat to up earnings every quarter excluding accretion from the Beru,” the analysts commented, maintaining their Buy rating.
“We had a strong fourth quarter and another outstanding year,” said BorgWarner chairman and CEO, Tim Manganello. “Once again, we delivered growth levels that significantly outpaced worldwide car and truck production because our technology is targeted at the fastest growing parts of the market. Our sales were up 15 per cent in 2004 while worldwide industry production was up approximately 3 per cent.”
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