Auto parts maker BorgWarner ( BWA), said Thursday that its second-quarter earnings rose 95.5% from the year-ago period, helped by strong demand for fuel-efficient engine and drivetrain technology.

The company earned $70.2 million, or $1.21 a share, including stock-option expense of 4 cents a share, in the quarter, compared with $35.9 million, or 63 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of $68.9 million, or $1.20 a share.

Second-quarter revenue rose 5.4% from a year ago, in line with analysts estimate, to $1.17 billion.

The Auburn Hills, Mich.-based company expects to earn $4.35 a share to $4.60 a share for the full year 2006, compared with $4.22 a share to $4.57 a share, as forecasted earlier. Analysts were expecting earnings of $4.51 a share for the full year.

"While we have moved our guidance to the higher end of the previous range, we remain cautious concerning the second half of the year", the company said. "Market share shifts and continued weakness in sport-utility and light truck sales continue to create uncertainty in North America. Strong demand for our products in the rest of the world will drive our results. We also expect to maintain operating margins in 2006 despite continued raw material and energy cost increases, rising health care costs and the costs related to global expansion."

Second-quarter gross profit fell marginally by 0.6% from a year ago to $231.1 million and gross margin declined 114 basis points to 19.8%. Operating income for the quarter rose 83.1% to $107.5 million and operating margin increase 392 basis points to 9.2%.

By segment, second-quarter revenue from engine group rose 8% from a year ago to $792 million, however revenue from drivetrain group fell 1% to $386.3 million.

Shares rose $2.40 Thursday to $60.80.
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