BorgWarner Inc. posted stronger-than-expected quarterly results today and raised its outlook for 2007 as it benefited from a restructuring in North America.
BorgWarner, which eliminated about 850 jobs in the North American restructuring in 2006, also said it planned to close a plant in Muncie, Ind., no later than April 2009, cutting 780 additional jobs.
Net income fell to $40.9 million in the fourth quarter, from $64.6 million a year earlier. Revenue rose 14.7 percent to $1.2 billion.
BorgWarner cut about 13 percent of its North American work force in 2006 due to a slump in orders from U.S. automakers and rising commodity costs and took the added charges in the fourth quarter for asset impairments, including the plant closing.
BorgWarner produces turbochargers, clutch systems, engine timing devices and traction controls that can improve gas mileage and vehicle stability among other parts.
BorgWarner raised its full 2007 earnings forecast range by a dime, to $4.70 to $4.90 per share, from the outlook given in January, based on the restructuring. Analysts expect $4.67.
It left intact the January revenue forecast for sales to rise 7 percent to 9 percent in 2007, from the $4.59 billion reported in 2006. Analysts expect sales of $4.82 billion.
BorgWarner ranks No. 33 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $4.38 billion in 2005.