BorgWarner to Explore South America

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BorgWarner Inc. (BWA) announced the opening of a new production facility and engineering center at the Itatiba City in Brazil. This move will likely enhance the position of the BorgWarner as the leading supplier of advanced powertrain technologies in South America.

The facility is located 80 km northwest of Sao Paulo and is twice bigger than the existing facility in Campinas in Brazil. BorgWarner will be producing eco-friendly technologies including turbochargers, viscous fans and fan drives, engine timing systems and emissions technologies for passenger cars and commercial vehicles in the new plant.

BorgWarner accelerated the new campus in only 18 months followed by the relocation of production capacity from Campinas facility. The company believes that the local production unit together with the engineering capabilities will satisfy the rising demand for fuel efficient vehicles with reduced emission standard.

The new campus has a total area of about 100,000 square meters with further space for expansion. The engineering center includes four engine test stands for the development of latest powertrain technologies for local customers.

In addition, the Itatiba City plant is in advantageous position due to its strategic location near major development regions and Sao Paolo, which attracts more number of multinational companies. BorgWarner also expect that the new facility will receive the Leadership in Energy and Environmental Design certification.

BorgWarner is a leading manufacturer of powertrain products for the world's major automakers. The company’s products are capable of improving vehicle performance and stability, meeting fuel-efficiency and emission standards. The company’s largest customers also include Ford Motor Co. (F), Toyota Motor Corp. (TM) and Daimler AG (DDAIF).  

BorgWarner posted earnings per share (excluding non-recurring items) to $1.16 per share in the fourth quarter of 2012, down 2.5% from $1.19 in the same quarter of 2011. However, the results surpassed the Zacks Consensus Estimate by 4 cents.

Revenues fell 3.1% year over year to $1.72 billion in the quarter, but were ahead of the Zacks Consensus Estimate of $1.69 billion. Global light vehicle production inched up 1%, while production in Europe, which comprises over half of the company’s sales, declined 11%.

BorgWarner currently retains a Zacks Rank #3 (Hold).
 

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