Borg-Warner Automotive Adjusts Expectations: Announces Share Repurchase Program

13 November 1997
Borg-Warner Automotive Adjusts Expectations: Announces Share Repurchase Program

    CHICAGO, Nov. 13 -- Borg-Warner Automotive, Inc.
today announced that its board of directors authorized the purchase of up to
800,000 shares or approximately 3% of the company's common stock.  In
addition, the company expects its 1997 earnings to be 33% ahead of 1996
operating results, but $.10 per share lower than the current analysts'
consensus estimate of $4.45 per share, due to slower than anticipated revenue
growth in the fourth quarter.
    "We had expected that the revenue shortfall related to Chrysler production
issues would be offset by additional growth across our customer base during
the quarter," said John F. Fiedler, chairman and chief executive officer of
Borg-Warner Automotive.  "Having just reviewed October results, we are
disappointed that this growth does not appear to be materializing despite the
optimism for the quarter expressed by the auto makers.  If this trend
continues, we will fall short of our expectations.
    However, 1997 will still be a very strong year for us as we continue to
outperform the industry.  Earnings are expected to climb 33% with revenue up
13%.  For 1998, we remain comfortable with the First Call consensus estimate
of $4.96 per share."
    The share repurchase program approved by the company's board of directors
is the first for Borg-Warner Automotive.  The shares will be purchased in the
open market at prevailing prices and at times and amounts to be determined by
management as market conditions and its capital position warrant.  Purchased
shares will be placed in treasury and may subsequently be reissued for general
corporate purposes.
    Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems primarily for automotive powertrain
applications.  The company operates manufacturing facilities in 12 countries
serving the North American, European and Asian automotive markets.
    Statements contained in this press release which are not historical facts
are "forward-looking" statements as contemplated by the Private Securities
Litigation Reform Act of 1995.  Such forward-looking statements are subject to
risks and uncertainties, which could cause actual results to differ materially
from those projected or implied in the forward-looking statements.  Such risks
and uncertainties include fluctuations in domestic or foreign automotive
production, the continued use of outside suppliers by original equipment
manufacturers, and general economic conditions, as well as other risks
detailed in the Company's filings with the Securities and Exchange Commission,
including the Cautionary Statements filed as Exhibit 99.1 to the Form 1O-K for
the fiscal year ended December 31, 1996.

SOURCE  Borg-Warner Automotive, Inc.