Hurt by the strong dollar, auto parts supplier BorgWarner reported disappointing first-quarter results and lowered its outlook for the year. Its shares fell nearly 4 percent in afternoon trading Thursday.
The strength of the U.S. currency is hammering all companies that do business overseas and was cited by economists this week when growth in the nation's economy almost ground to a halt in the first three months of the year.
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For companies, it is making their exports more expensive and less competitive.
BorgWarner now expects full-year earnings in the range of $3.10 to $3.30 per share, down from its previous forecast between $3.35 and $3.55 per share. Analysts expected earnings of $3.42 per share, according to FactSet.
BorgWarner expects full-year revenue to fall as much as 4 percent from the year before. It previously expected a 2 percent to 6 percent increase. Analysts expected revenue to rise 3 percent to $8.56 billion.
For its first-quarter, it reported net income of $178.9 million, or 79 cents per share. Earnings, adjusted for non-recurring gains, were 78 cents per share.
The results missed Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of 84 cents per share.
The auto parts supplier posted revenue of $1.98 billion in the period, which also fell short of Street forecasts. Nine analysts surveyed by Zacks expected $2.14 billion.
Shares of the BorgWarner, based in Auburn Hills, Michigan, fell $2.17, or 3.6 percent, to $58.75 in afternoon trading.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on BWA at http://www.zacks.com/ap/BWA
Keywords: BorgWarner, Earnings Report