AUBURN HILLS, MI — BorgWarner has provided 2007 earnings guidance of $4.60 to $4.80 per diluted share on a U.S. GAAP basis. Earnings growth is expected to be in line with BorgWarner historical growth rates of greater than 10 percent, according to the company.

"In 2007, our global business will face two distinct business environments. In Europe and Asia, our operations are expected to flourish, experiencing strong growth across both Engine and Drivetrain, while our North American operations will remain focused on stabilization and adapting to the new dynamics of a rapidly changing market," said Tim Manganello, BorgWarner chairman and CEO. "Ultimately, we expect that our technologies, developed to enhance fuel economy, performance, vehicle stability and emissions, will drive growth in 2007 and beyond."

BorgWarner expects to achieve sales growth in a range of 7 percent to 9 percent despite moderate global vehicle production growth in 2007. North American vehicle production is expected to be down marginally, European vehicle production is expected to be up slightly, and solid growth is anticipated in Asia. The impact of foreign currencies in 2007, versus 2006, is expected to be minimal.

The company expects 2007 operating margins to be up from 2006, toward the low end of its historical range of 8.5 percent to 9 percent. The expectation of improved margins can be largely attributed to incremental income from net new business, the impact of third quarter 2006 headcount reductions in North America, and an intensified focus on cost reductions, which is expected to more than offset the incremental margin lost on lower sales in North America, continued raw material cost pressures, rising healthcare costs and the costs related to global expansion.

For more information about BorgWarner, go to: http://www.borgwarner.com.