BorgWarner Turbocharging Technology for Volkswagen China
BorgWarner Inc. (BWA) announced that it will be supplying its advanced turbocharging technology to Volkswagen AG (VLKAY) in the Chinese market. This technology will feature in Volkswagen's latest four-cylinder gasoline engine.
BorgWarner’s B01 turbocharger technology will help to enhance the performance and fuel efficiency of the vehicles. In addition, the BorgWarner turbocharger enables the 1.4-liter gasoline engines to deliver superior responsiveness over the entire engine speed range. The compact design and immediate response increase engine performance, along with enhancing fuel efficiency. BorgWarner's turbocharger is available with outputs of 96 to 101KW.
BorgWarner’s turbochargers are produced at its Ningbo, China plant. Local production further helps to support the Chinese automotive market. The company has been developing and assembling advanced turbocharging technologies at the Ningbo plant since 2006. In 2012, owing to the rising demand for fuel-efficient powertrain technologies in the Chinese market, BorgWarner expanded the campus and opened another production plant. The company also started the Ningbo Engineering Center.
BorgWarner posted a 13% increase in adjusted earnings to 79 cents per share in the third quarter of 2014 from 70 cents recorded in the prior-year quarter. Also, earnings per share were in line with the Zacks Consensus Estimate.
For 2014, BorgWarner’s organic sales are expected to increase 12–13%, down from the previous guidance of 13–15%. Further, the company expects net earnings (excluding non-comparable items) for the year in the band of $3.23–$3.28 per share, down from the previous projection of $3.25–$3.35. Operating margin for 2014 is expected to be up 13%.
Currently, BorgWarner carries a Zacks Rank #3 (Hold). Better-ranked automobile stocks worth considering include Gentex Corp. (GNTX) and STRATTEC Security Corporation (STRT). Both Gentex and STRATTEC Security sport a Zacks Rank #1 (Strong Buy).
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