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BorgWarner Earnings Fall

They are hit by acquisition charges.


(BWA) - Get Free Report

said fourth-quarter profits fell 5% from a year ago, hurt by expenses related to the purchase of a majority stake in the German auto parts company, Beru AG.

The Auburn Hills, Mich.-based auto parts company earned $64.6 million, or $1.12 a share, for the quarter, compared with $67.7 million, or $1.19 a share, a year ago. Excluding a charge on the acquisition of Beru, the company earned $1.21 a share in the latest quarter. Analysts polled by Thomson First Call were estimating earnings of $1.19 a share in the most recent quarter.

Fourth-quarter revenue rose 17.9% from a year ago to $1 billion. Analysts were expecting revenue of $1.1 billion in the most recent quarter.

In fiscal 2006, the company expects to earn $4.20 a share to $4.60 a share. This estimate includes costs of 16 cents a share to 18 cents a share of option expenses, as well as a negative impact of 12 cents a share to 25 cents a share from weaker foreign currencies. The Wall Street consensus earnings estimate was for $4.70 a share.

In the fourth quarter, the company's revenue outside the U.S. grew 12.1% over the corresponding period a year ago, excluding revenue from Beru and the impact of currency. Revenue in the U.S. declined 2.4%.

"We had a strong fourth quarter and another outstanding year, relative to overall industry conditions," said the company. "Our results were driven by our technology that is targeted at improvements in fuel economy, emissions reduction and vehicle performance, the fastest growing parts of the market."

The company's board of directors approved a 14% increase in the quarterly cash dividend to 16 cents.

This story was created through a joint venture between and IRIS.