BorgWarner projects earnings, sales growth in 2008

Despite lower sales in the U.S. market and moderate global vehicle production growth, BorgWarner Inc. has provided a 2008 earnings guidance of $2.85 to $3.00 per diluted share. Based on these figures, the company experts earnings growth of 20 to 25 percent compared with 2007.

"In 2008, we expect another record year for sales and earnings," says Tim Manganello, BorgWarner's chairman and CEO. "Our global business will face two distinct business environments. In Europe and Asia, our operations are expected to flourish, experiencing strong growth across both Engine and Drivetrain, while our North American operations will remain focused on cost management in a weak vehicle production environment. Our technologies, developed to provide better fuel economy, lower emissions and improve performance, will drive growth in 2008 and beyond."

Industry analysts predict that North American industry vehicle production will be down, European industry vehicle production will be relatively flat, and solid growth will occur in Asia during the coming year. The impact of foreign currencies in 2008, versus 2007, is expected to be minimal.

BorgWarner expects 2008 operating margins to be up from 2007 and within its historical range of 8.5 to 9.0 percent. The expectation of improved margins can be largely attributed to incremental income from net new business and an intensified focus on cost reductions, which is expected to more than offset the incremental margin lost on lower sales in North America, continued raw material cost pressures, and the costs related to global expansion.

For more information about BorgWarner Inc., visit the company's Web site.