Borg-Warner Automotive Back on Growth Track
31 March 1999
Borg-Warner Automotive Back on Growth Track: BWA Expects to Beat First Quarter EPS Concensus Based on Strength of Engine-Related Programs, Auto BuildsCHICAGO, March 30 -- Borg-Warner Automotive announced today that it expects first quarter 1999 earnings to surpass current First Call estimates of $1.18 per share by an estimated 10%. "While this should be a good quarter for many in our industry because of strong vehicle production, we are additionally benefiting from the growth provided by changes in engine technology," said John F. Fiedler, chairman and chief executive officer of Borg-Warner Automotive. "These engine programs, especially in Europe, are driving double digit growth in our Morse TEC and new Turbo Systems operating groups." Fiedler noted that improved sales and earnings are anticipated across all of the company's operating groups and that the recent acquisition of Kuhlman Corporation will be neutral to the quarter. "Our focused, technology-driven strategy has put us back on track with the kind of excellent growth that investors have come to expect from us. With earnings per share in the 1999 first quarter expected to increase 20% over last year's first quarter, we're off to a great start for the year." For the 1998 first quarter, Borg-Warner Automotive reported net earnings of $26.0 million, or $1.09 per share, on sales of $464.7 million. Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing facilities in 13 countries. Customers include Ford, Daimler-Chrysler, General Motors, Toyota, and VW. Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. 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, fluctuations in demand for vehicles containing the Company's products, 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 10-K for the fiscal year ended December 31, 1997.