BorgWarner Provides 2005 Earnings Guidance; Demand for Fuel Efficient Products Continues to Drive Growth

AUBURN HILLS, Mich., Jan. 13, 2005 -- BorgWarner Inc. today provided guidance for 2005 earnings per share in a range of $4.30 to $4.55, which includes assumptions about the company's Beru acquisition in a range of $0.15 to $0.30 per share, and expectations of $4.15 to $4.25 per share on the company's base business as a comparison to 2004 expectations.

"Our proven ability to serve the fastest growing parts of the auto market and our pipeline of new business is expected, again, to generate growth for BorgWarner in 2005," said Timothy M. Manganello, Chairman and CEO. "The overall trends driving our growth remain the same. They revolve around fuel efficiency, emissions reduction, improved performance, and vehicle handling or stability. On our base business, we believe that we can achieve sales growth in a range of 8% to 10% that will propel earnings growth in excess of 10%, even given current industry assumptions for almost flat production. The expected accretion of the Beru acquisition will further add to our base business growth."

As previously announced on January 4, 2005, the company acquired a majority of the outstanding shares of Beru. A valuation required to determine the allocation of the purchase price and its impact on the accretiveness of the acquisition has yet to be completed. The earnings guidance related to the acquisition is based on a range of 50% to 25% allocation of the excess purchase price to amortizable assets to derive the $0.15 to $0.30 per share for BorgWarner's 63% ownership position. The company is providing guidance of $4.15 to $4.25 earnings per share on its base business to give investors a way to compare expectations with its previous performance.

Mr. Manganello said that the company's guidance is based on assumptions of North American light vehicle production for the year of approximately 16 million cars and light trucks, and only modest growth in Japan, Korea and Europe. "In Europe, we expect strong demand for our more fuel-efficient engine and transmission products and systems, including those from Beru. In North America, we expect to benefit from our broad customer base which includes all major auto makers. Growth in Asia with customers like Hyundai will create demand in that region."

The company will discuss its guidance in conjunction with the North American International Auto Show in Detroit today. Further details can be found by accessing the presentation webcast at http://www.bwauto.com/investor.html .

BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 58 locations in 17 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot, VW/Audi and BMW. The Internet address for BorgWarner is: http://www.bwauto.com/ .