affirmed its full-year earnings guidance Monday and said it settled a patent dispute with
The patent settlement involves BorgWarner's Turbo Systems unit, which had a dispute over variable-geometry turbochargers with Honeywell. Under the terms of the agreement, BorgWarner will pay Honeywell $29.1 million, and the companies' licensing agreement will extended through 2006. This settlement grants BorgWarner a limited license under the relevant Honeywell patent.
Payments are to be made in 2003 through 2005; about 40% of the total will be paid in 2003 and approximately 49% of the total to be paid in 2004, BorgWarner said.
The company also affirmed its earnings guidance, saying it expects earnings of $6.20 to $6.35 a share in 2003. Analysts expect $6.24 a share. The company earned $5.58 a share last year.
Shares of BorgWarner were down 2.4% in late-morning trading at $64.33, and shares of Honeywell were down about 3% at $27.62.