BorgWarner Inc., the producer of automotive turbochargers and emission systems based in Auburn Hills, MI, USA, reported a 65% rise in quarterly profit with net income rising to $166.8 million in the third quarter ended September 30 compared with the same period in 2012. Sales revenue rose 7% to $1.81 billion from $1.70 billion in Q3 2012.
“Operational efficiency and cost controls enabled us to post a strong operating income margin of 12.5% in the quarter,” stated CEO James Verrier. “The focus on fuel economy and improved emissions in the automotive sector continued to drive growth for BorgWarner.”
Currently 50% of BorgWarner’s sales come from Europe. The company’s engine group, which supplies turbochargers, exhaust-gas recirculation coolers and variable-cam timing devices, accounting for two-thirds of sales, reported a 4% increase in sales to $1.2 billion.
The drivetrain group, which sells all-wheel-drive systems and transmission components, reported a 13% rise in sales to $604 million. Borg Warner is both a major user as well as producer of Power Metallurgy parts.
In July this year BorgWarner MorseTec closed its plant in Cortlandville, New York State, USA, which produced PM sprockets for engine timing systems and PM transfer cases.