BorgWarner to Explore South America - Analyst Blog
April 22 2013 - 7:10AM
Zacks
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).
BORG WARNER INC (BWA): Free Stock Analysis Report
DAIMLER AG (DDAIF): Free Stock Analysis Report
FORD MOTOR CO (F): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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