were higher after the company said it expects a jump in first-quarter profit. The company cited strong demand in Europe for its fuel-efficient engine technology.
The company's shares were up 7.5% at $53.63 in late trading.
First-quarter earnings are expected to be $1.65 a share, compared with $1.18 a share in the first quarter of 2002. Analysts expect $1.44 a share. The expected results include a one-time charge of $10.08 a share related to the cumulative effect of the change in accounting principle for goodwill, the company said.
The company also reiterated its guidance for full-year 2003, which it expects to come in ahead of analysts' estimates.
"We expect to deliver continued growth in 2003 from new business and increased sales to the faster-growing parts of the auto market, even if worldwide auto production continues to be softer than in the past several years," said Timothy M. Manganello, president of BorgWarner. "Strong demand is expected in Europe for our fuel-efficient engine and transmission systems, and in North America for computer-controlled four-wheel and all-wheel drive systems that enhance vehicle stability."
BorgWarner expects to earn $6.20 to $6.35 a share for full-year 2003. This compares with $5.58 a share earned in 2002. Analysts expect $6.16 a share.