BorgWarner Provides Weak FY14 Adjusted EPS Guidance

(RTTNews) - Engineered automotive systems maker BorgWarner Inc. (BWA) Wednesday provided weak adjusted earnings outlook for fiscal year 2014, with the midpoint of the range indicated to come in below Wall Street estimates.

Meanwhile, the company reaffirmed its adjusted earnings expectations for fiscal year 2013.

BorgWarner shares are losing 2.2 percent in afternoon trade on the New York Stock Exchange.

For fiscal 2014, Auburn Hills, Michigan-based BorgWarner expects adjusted earnings of $3.10 to $3.25 per share. On average, 21 analysts polled by Thomson Reuters currently expect earnings of $3.23 per share for 2014. Analysts' estimates typically exclude special items.

The company expects organic sales growth in 2014 to be between 7 percent and 11 percent compared with 2013 sales guidance.

Operating income margin in 2014 is expected to be 12.5 percent or better, and capital expenditures, including tooling outlays, of $450 million to $500 million.

"In 2014, we expect another record year for sales and earnings," said James Verrier, BorgWarner CEO. "Our backlog of net new business is expected to drive sales growth of 7 percent to 11 percent in 2014 compared with 2013 as demand for our product technologies that improve fuel economy, emissions and performance, continues to accelerate around the globe."

For fiscal 2013, BorgWarner continues to expect adjusted earnings of $2.78 to $2.83 per share, while analysts currently expect $2.80 per share.

BorgWarner stock is trading at $55.52, down $1.26 or 2.22%, on a volume of 2.2 million shares on the NYSE.