BorgWarner net income up 9% as engine division grows
BorgWarner, a supplier of turbochargers and emissions systems, reported a 9 percent increase in net income for the second quarter as its engine division grows and the European market -- which makes up about half of the company’s customer base -- continues to recover.
Total revenue for the quarter was $2.2 billion, up 16 percent, with the drivetrain and engine divisions generating $709 million and $1.5 billion, respectively. Net income was $190.2 million, compared with $174 million during the same quarter last year.
In November, the company said it was expecting net new powertrain business of $2.9 billion from 2014 to 2016, 80 percent of which was predicted to come from engine-related products.
“The global adoption of our leading edge powertrain technology, combined with the recent Wahler acquisition, drove tremendous sales growth in the quarter, while operational efficiency boosted our results,” BorgWarner CEO James Verrier said in a press release.
BorgWarner completed the acquisition of Wahler, a producer of exhaust gas recirculation systems and engine thermostats, on April 1.
BorgWarner ranks No. 32 on the Automotive News list of the top 100 global suppliers, with worldwide sales to automakers of $7.44 billion in 2013.