BorgWarner Warns of Lower Earnings

BorgWarner Inc., maker of engine turbochargers, said that its earnings will be less than forecast for the third quarter, and that it will take a charge of about $19.6 million to cut costs. The company blamed the earnings weakness on a soft euro, concern that the Firestone tire recall will cut Ford Motor Co. truck and sport-utility output, and weak sales at customers such as DaimlerChrysler and truck makers. The charge, which amounts to about 75 cents a share, will pay for a reorganization that BorgWarner estimates will save about $9 million annually starting in 2001. Profit will fall to about 95 cents a share in the quarter, BorgWarner said, much less than the $1.06 analysts expected. BorgWarner closed off 75 cents at $33.94 on the NYSE.