BorgWarner Inc., the maker of automotive turbochargers and emission systems, reported a 65 percent rise in quarterly profit, partly due to higher demand for fuel-efficient vehicles.
Net income attributable to the company rose to $166.8 million, or $1.45 per share, in the third quarter ended Sept. 30 from $101.1 million, or 85 cents per share, a year earlier.
Revenue rose 6.5 percent to $1.81 billion from $1.70 billion in Q3 2012.
"Operational efficiency and cost controls enabled us to post a strong operating income margin of 12.5% in the quarter,” CEO James Verrier said in a statement. “The focus on fuel economy and improved emissions continued to drive growth for BorgWarner.''
The company raised its 2013 earnings forecast to a range of $5.55-$5.65 per share from $5.40-$5.55. Analysts on average were expecting $5.54 per share, according to Thomson Reuters.
BorgWarner trimmed its outlook for full-year revenue growth to 3 percent to 4 percent, from 3 percent to 5 percent, but said it now expects its operating margin for the year to be 12 percent or better.
The company's engine group, which accounts for two-thirds of sales, reported a 3.6-percent gain in quarterly revenue to $1.2 billion, with operating margin rising to 16.2 percent.
The engine group supplies turbochargers, exhaust-gas recirculation coolers and variable-cam timing devices.
The drivetrain group, which sells all-wheel-drive systems and transmission components, reported a 13.1-percent rise in revenue to $604 million, with operating margin climbing to 10.9 percent.
BorgWarner ranks No. 29 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $7.2 billion in 2012.
