) touched new 52-week high of $87.66 on Jun 28, which is above
its previous level of $87.29 on Jun 18, and closed at $86.15 on
the same date. The closing price represented a solid one-year
return of 33.5% and year-to-date return of 15.6%.
The leading manufacturer of powertrain products for the world's
major automakers has a market cap of $10.0 billion. Average
volume of shares traded over the last three months stood at
Shares of BorgWarner started escalating following its impressive
2013-first quarter results on Apr 25, improving fundamentals in
the automobile parts market and a bright future for turbochargers
produced by the company.
BWA posted a 1.6% increase in adjusted earnings to $1.30 per
share (excluding non-recurring items) in the first quarter of
2013 from $1.28 in the first quarter of 2012. Earning per share
surpassed the Zacks Consensus Estimate by 8 cents.
However, revenues dipped 3.2% to $1.85 billion, but were
marginally ahead of the Zacks Consensus Estimate of $1.84
billion. The decrease in revenues was driven by 9% decline in
light vehicle production in Europe, which accounts for over half
of the company's sales.
For 2013, BorgWarner anticipates that annual sales will improve
between 2% and 6%. Excluding the impact of 2012 dispositions, net
sales are expected to increase between 3% and 7%. The company
also expects net earnings between $5.15 and $5.45 per share for
the year and operating margin to be higher than 11.5% in 2013.
Not only BorgWarner, shares of other auto parts maker such as
Magna International Inc.
Johnson Controls Inc.
) are also reaching 52-week highs due to continuous improvements
in the market. Investors believe that the recessionary conditions
in the market no longer exist.
Further, stricter emissions standards imposed by the governments
will lead to burgeoning demand for turbochargers, as automakers
will be forced to design more and more fuel-efficient vehicles.
BWA operates in 57 locations in 19 countries. The company's
products are manufactured and sold worldwide, primarily to
original equipment manufacturers of passenger cars, SUVs, trucks
and commercial transportation products. It currently retains a
Zacks Rank #2 (Buy).
BORG WARNER INC (BWA): Free Stock Analysis
JOHNSON CONTROL (JCI): Free Stock Analysis
LEAR CORPORATN (LEA): Free Stock Analysis
MAGNA INTL CL A (MGA): Free Stock Analysis
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