Borg Warner (BWA) is selling off with heavy volume after the company reported earnings that missed analyst estimates by a wide margin.  The company reported a non GAAP loss of .05/share vs the expectations for a .07/share profit.  Sales also came in much lighter than expected at $916 million vs expectations of $970 million.

The CEO commented that restructuring initiatives from last year are helping the company and that the company generated positive cash flow in the quarter.  Ah, the usual positive spin on an awful quarter.  Further restructuring is taking place to position the company for a market recovery.

The company which produces components used in lighter, fuel efficient vehicles also commented on the economy and auto industry:

“With the uncertainty surrounding the fate of General Motors and Chrysler behind us, we now have more clarity on the state of the industry. However, the breadth and duration of the global recession is still an open question that concerns us and, as a result, we approach the near-term with caution.”

Looking ahead, the company sees a stronger 2nd half and a return to profitability after 3 straight quarters of losses.   

>>>