BorgWarner Affirms Outlook, Settles Patent Dispute

BorgWarner ( BWA) affirmed its full-year earnings guidance Monday and said it settled a patent dispute with Honeywell ( HON).

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.

More from Stocks

Is Tesla Really Being Sabotaged?

Is Tesla Really Being Sabotaged?

LIVE NOW: TheStreet's Top Columnists Take Your Questions on What Stocks to Buy

LIVE NOW: TheStreet's Top Columnists Take Your Questions on What Stocks to Buy

Beware of the Coming Economic Debt Bomb

Beware of the Coming Economic Debt Bomb

Dow Tumbles as Trump Ratchets Up China Trade Fight

Dow Tumbles as Trump Ratchets Up China Trade Fight

Why GE's Stock Has Fallen 15% in the Last 30 Days

Why GE's Stock Has Fallen 15% in the Last 30 Days