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BorgWarner to Expand in Mississippi
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BorgWarner Inc. (BWA) has announced its plans to expand its operation in Water Valley, Mississippi that will add 120 new jobs by the end of 2012.
Through the expansion, the company will introduce a new generation of transmission controls, known as mini direct-acting solenoids, to the production line-
up at the facility.
BorgWarner also intends to add two new production lines to the facility over the next three years. The facility manufactures transmission solenoids and control modules, especially for Chrysler LLC and General Motors (MTLQQ).
In the second quarter of the year, BorgWarner showed a profit of 78 cents per share (before special items), ahead of the Zacks Consensus Estimate of 67 cents per share. This was a significant improvement from a loss of 5 cents per share (before special items) in the prior-year quarter, driven by strong demand for the company's powertrain products and increased content in Europe.
Revenues increased a robust 55% to $1.42 billion, up from the Zacks Consensus Estimate of $1.32 billion. Operating profit improved to $117.3 million or 8.3% of sales from an operating loss of $49.5 million. Excluding special items, operating profit was $137.3 million or 9.7% of sales during the quarter under study.
BorgWarner raised its earnings outlook for 2010 based on growing demand for its products. The company anticipates sales to grow 32%-35% in 2010, up from the prior guidance of 28%-32%. Consequently, earnings are expected in the range of $2.60 to $2.80 per share, up from the previous outlook of $2.20-$2.50 per share.
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