BorgWarner Inc., the world's biggest maker of automatic-transmission parts, cut its 2006 profit forecast and will trim 850 North American jobs as U.S. automakers reduce production.
The company reduced its full-year earnings forecast by as much as 50 cents a share to $3.95 to $4.10. Sales will increase about 5 percent, the low end of previous guidance, BorgWarner said in a statement Friday. The job cuts represent 13 percent of salaried and hourly workers in the U.S., Canada and Mexico.
BorgWarner joins auto-parts makers Lear Corp. and TRW Automotive Holdings Corp. in slashing profit forecasts this month. BorgWarner had raised its outlook July 27, three weeks before Ford Motor Co. said it would trim second-half output.
Analysts cut their forecasts for BorgWarner profit in response to the revised guidance, and the shares fell 73 cents, or 1.3 percent, to $53.76 in New York Stock Exchange trading. They have declined 11 percent this year.
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