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UPDATE 1-Demand for fuel-efficient cars boosts BorgWarner's forecast

Wednesday, 30 Oct 2013 | 9:07 AM ET

* Third-quarter revenue rises 6.5 pct to $1.81 bln

* Earnings $1.45/share vs $0.85 a year earlier

* Raises 2013 profit forecast to $5.55-$5.65/share

Oct 30 (Reuters) - BorgWarner Inc, a maker of automotive turbochargers and emission systems, raised its full-year earnings forecast after reporting a 65 percent jump in quarterly profit, partly due to higher demand for fuel-efficient vehicles.

Shares of the company rose 1 percent in premarket trading.

BorgWarner is one of the biggest suppliers of turbocharging technology, increasingly utilized by automakers such as Ford Motor Co and Hyundai Motor Co to boost fuel economy and meet upcoming federal standards for fuel mileage.

"The focus on fuel economy and improved emissions continued to drive growth for BorgWarner," Chief Executive James Verrier said in a statement on Wednesday.

The company raised its 2013 earnings forecast to a range of $5.55-$5.65 per share from $5.40-$5.55.

Analysts on average were expecting $5.54 per share, according to Thomson Reuters I/B/E/S.

BorgWarner kept a lid on costs this year as demand remained weak in Europe, the company's largest market. It is now beefing up manufacturing in the region as the economy improves.

BorgWarner said it expanded its operations in Rzeszow, Poland by opening a plant and engineering center.

The company reported a 4 percent rise in selling, general and administrative costs in the third quarter ended Sept. 30. Revenue grew 6.5 percent to $1.81 billion.

Net income attributable to the company rose to $166.8 million, or $1.45 per share, in the quarter from $101.1 million, or 85 cents per share, a year earlier.

Excluding items, BorgWarner earned $1.40 per share.

BorgWarner shares were up at $106 before the bell. The stock has risen 65 percent in the 12 months to Tuesday's close, outperforming the S&P 500 index.

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