BorgWarner Powers 2006 Car, Truck of the Year Civic and Ridgeline make Honda Division first-time winner

Jan. 9, 06 -- The winning vehicles of the 2006 North American Car and Truck of the Year awards are powered by drivetrain and engine components supplied by leading global powertrain supplier, BorgWarner Inc.

The Honda Ridgeline, the mid-size front-wheel drive-based pickup which Honda developed to compete in the pickup segment in the U.S., uses BorgWarner's electronically controlled all-wheel drive InterActive Torque Management II (ITM II)™ system, as well as a number of components for the vehicle's transmission and the clutchpack assemblies for the ITM™ system. BorgWarner supplies engine timing products for the Honda Civic's 2.0L engine, as well as the torque converter one-way clutch.

The awards were announced Sunday during the opening press preview day of the North American International Auto Show. The two Honda vehicles also won 2006 Car and Truck of the Year honors from Motor Trend magazine late last year.

BorgWarner Opens New Worldwide Headquarters in Auburn Hills

AUBURN HILLS, Mich., March 3, 2005 - Leading global powertrain supplier BorgWarner Inc. (NYSE: BWA), has opened a new Worldwide Headquarters in Auburn Hills, Michigan.

"As a top-25, $4 billion automotive supplier focused exclusively on the automotive business, BorgWarner is a natural fit for metro Detroit -- a key location in the worldwide automotive industry, home to several of our global customer organizations, and the headquarters of three of our global business units," said Tim Manganello, BorgWarner Chairman and Chief Executive Officer. "Moving our headquarters to metro Detroit has already resulted in significant benefits including closer connections with our global customers and suppliers, opportunities for increased collaboration with the 475 employees at the BorgWarner Powertrain Technical Center in Auburn Hills, and enhanced industry visibility." The new, 60,000-square-foot building is located at 3850 Hamlin Road, at the southwest corner of Hamlin and Adams Roads.

"BorgWarner's record performance in 2004 affirms my view that no other automotive supplier is better positioned for global growth," Manganello said. "The establishment of our World Headquarters in metro Detroit marks the beginning of a new chapter in our proud history. We are grateful to the Michigan Economic Development Corporation and the people of Auburn Hills and Oakland County for their spirit of cooperation in bringing BorgWarner to the state of Michigan."

BorgWarner announced in September 2003 that it would relocate its corporate headquarters from Chicago to Auburn Hills. The new headquarters houses 80 corporate employees including the chairman and CEO's office, finance and administration, business development, corporate communications and investor relations, human resources, information technology, and legal/patent. BorgWarner has leased 41,000 square feet of space in the 60,000-square-foot building, which was designed by Studio B Architects of Birmingham, Michigan and is owned by Etkin Equities, Southfield, Michigan.

BorgWarner Holds 69.42% of Beru Shares

AUBURN HILLS, Mich., Feb 15, 2005 - BorgWarner Inc. (NYSE: BWA) announced today that, through BorgWarner Germany GmbH, it holds a total of 69.42% of the outstanding shares of Beru AG after the completion of the additional tender offer period in Germany on February 10, 2005.

Headquartered in Ludwigsburg, Germany, Beru AG is a leading global automotive supplier and manufacturer of diesel cold starting technology (glow plugs and instant starting systems); gasoline ignition technology (spark plugs and ignition coils); and electronic and sensor technology (tire pressure sensors, diesel cabin heaters and selected sensors.) Beru's major customers include, among others, BMW, DCX, GM/Fiat, VW/Audi, Ford, Porsche, PSA, Renault, Isuzu, Siemens VDO, Valeo, Deutz, and MAN. Beru employs approximately 2,700 employees.

BorgWarner Achieves Record 2004 Sales and Earnings Driven by Strong Worldwide Demand

AUBURN HILLS, Mich., Feb 04, 2005 /PRNewswire-FirstCall via COMTEX/ -- BorgWarner Inc. (NYSE: BWA) today reported 2004 earnings of $3.86 per share on sales of $3.5 billion. The powertrain systems supplier delivered record results in spite of flat car and truck production in North America and modest growth elsewhere in the world. Strong demand for BorgWarner technology in Europe and Asia, along with continued cost efficiencies, helped boost results.

Fourth Quarter Highlights:

• Earnings hit record $1.19 per share

• Includes favorable year-end tax adjustments of $0.20 per share

• Sales of $889 million, up 11% from 2003

• Operating income margin of 9.2%

• Dividend increased 12% to $0.14 per share

• Net Cash Provided by Operating Activities of $105.9 million

Full Year Highlights:

• Record earnings of $3.86 per share

• Includes favorable year-end tax adjustments of $0.20 per share

• Record sales of $3.5 billion

• Operating income margin of 8.8%

• Net Cash Provided by Operating Activities of $426.6 million

• Return on invested capital hits 13.1%

• Engine Group sales up 19%

• Drivetrain Group sales up 9%

Comment and Outlook:

"We had a strong fourth quarter and another outstanding year," said Tim Manganello, Chairman and CEO. "Once again, we delivered growth levels that significantly outpaced worldwide car and truck production because our technology is targeted at the fastest growing parts of the market. Our sales were up 15% in 2004 while worldwide industry production was up approximately 3%. Both our Engine and Drivetrain businesses had solid growth driven by demand for our systems, which improve fuel economy, performance and air quality. We translated this sales growth into improved profits, despite significant increases in steel and other commodity prices, by sharpening our focus on manufacturing and administrative cost reduction efforts, as well as on supply chain management. We clearly demonstrated the viability of our technology-driven growth strategy and the benefits of building one of the most diverse customer bases in the industry."

The company reiterated that it expects 2005 earnings per share in a range of $4.30 to $4.55, which includes assumptions about the company's Beru acquisition in a range of $0.15 to $0.30 per share, and expectations of $4.15 to $4.25 per share on the company's base business as a comparison to 2004 expectations.

"The overall trends driving our growth continue to be strong," said Mr. Manganello. "On our base business, we believe that we can achieve sales growth in a range of 8% to 10% that will propel earnings growth in excess of 10%, even given current industry assumptions for almost flat production. The expected accretion of the Beru acquisition will further add to our base business growth."

Financial Results:

For fourth quarter 2004, sales were $889.2 million, up 11% from $798.8 million in fourth quarter 2003. Net income in the quarter was $67.7 million, or $1.19 per share, compared with $50.0 million, or $0.90 per share in last year's fourth quarter. Fourth quarter 2004 net income includes favorable year-end adjustments to tax accounts of $11.4 million, or $0.20 per share. Sales for 2004 totaled $3.5 billion compared with $3.1 billion in 2003. Full-year 2004 net income was $218.3 million, or $3.86 per share, compared with $174.9 million, or $3.20 per share in 2003. Full-year 2004 net income includes favorable year-end adjustments to tax accounts of $11.4 million, or $0.20 per share. Fourth quarter and full-year 2004 net income excluding the favorable year-end adjustments to tax accounts is representative of recurring net income and is provided for comparisons with other quarterly and annual results. The increase in the Euro and other currencies added $114.3 million to sales in 2004 compared with 2003, and $11.0 million to net income.

Operating income was $81.9 million or 9.2% of sales in the 2004 fourth quarter and $309.1 million or 8.8% for the full year. These amounts compare with $76.0 million or 9.5% of sales in the 2003 fourth quarter and $269.9 million or 8.8% for the 2003 full year. Research and development spending was $32.4 million in the quarter and $123.1 million for the full year, versus $30.8 million and $118.2 million in the same periods in 2003.

Net cash provided by operating activities was a record $426.6 million in 2004. Investments in capital expenditures and net tooling totaled $252.4 million for 2004, compared with $214.4 million for 2003. Debt declined $37.8 million and cash and cash equivalents increased $116.6 million in 2004.

Engine Group Results:

Strong demand boosted Engine Group sales 18% to $567.6 million for the fourth quarter and 19% to $2.2 billion for the year. Earnings before interest and taxes were $72.9 million for the quarter and $281.7 million for the year. The group continues to benefit from European and Asian automaker demand for turbochargers, timing systems and emissions products, and from stronger commercial vehicle production in both Europe and North America. During the year, the group expanded its presence in Korea to manufacture engine timing systems for Hyundai's high-volume gasoline engines and with a joint venture for the manufacture and sale of turbochargers. New business awards with Asian and European automakers expanded the group's customer base.

For 2005, the Engine Group expects to deliver continued growth from further penetration of diesel engines in Europe, which will continue to boost demand for turbochargers and Beru technologies. Investments in Korea are expected to begin to contribute to results. This growth is expected to help offset anticipated weakness in North American light vehicle production.

Drivetrain Group Results:

Sales were flat for the quarter at $332.9 million, and up 9% to $1.4 billion for the year. Earnings before interest and taxes were $28.1 million for the quarter and $106.9 million for the year. Results were driven by demand for transmission and four-wheel drive systems, especially among Asian and European automakers. For the year, productivity efforts offset the impact of commodity pricing, as well as health care costs. Important new business for both rear-wheel and front-wheel drive systems was won during the year with two automakers in North America. In Europe, fuel-efficient DualTronic(TM) transmission technology was made available on four additional Volkswagen/Audi vehicles.

In 2005, growth in the Drivetrain Group is expected to be flat as demand for traditional light trucks will be about the same as in 2004. Sport-utility vehicle sales are expected to decline, while sales of front-wheel-drive based all-wheel-drive systems are expected to increase. Transmission products will benefit from increased penetration of automatic transmissions in Europe and Asia, and the continued ramp-up of DualTronic(TM) transmission modules in Europe.

Recent Highlights:

In January 2005, BorgWarner announced that it has completed the purchase of approximately 63% of the outstanding shares of German-based Beru AG from its major shareholders, The Carlyle Group and a group of family shareholders. Beru AG results will be consolidated within the BorgWarner Engine Group beginning in the first quarter of 2005. During the fourth quarter 2004, the company announced $1.4 billion of expected net new powertrain business for 2005 through 2006. In addition, the company's board of directors approved a 12% increase in the quarterly cash dividend to $0.14 per share on all of the company's issued and outstanding common stock.

The Drivetrain Group announced that it has been awarded a major new- business contract to supply its most advanced 4WD TorqTransfer system to a North American OEM, while the Engine Group announced that it will supply its regulated two-stage turbocharging systems to BMW for its new, 3.0-liter, 6-cylinder diesel engine for the BMW 5-series.

Reflecting the significance of China to the company's global growth strategy, BorgWarner broke ground on a new facility in Ningbo for the assembly of engine products for VW/Audi's gasoline 4-cylinder world engine, and opened an 800-square-meter office in Shanghai.

BorgWarner Takes Additional Action in 2000 in Response to Industry Conditions; Expects to Earn $5 Per Share for 2000 

CHICAGO, Jan. 16, 2001- BorgWarner Inc. (NYSE: BWA) today announced that additional efforts were undertaken in the fourth quarter of 2000 to bring costs in line with deteriorating industry conditions. The company anticipates savings of $19 million annually beginning in 2001 from these and other initiatives previously announced in the 2000 third quarter. As a result, the company has recorded a one-time after-tax restructuring charge of about $19.1 million or $.72 per share in the fourth quarter. The charge includes costs for a variety of additional actions to adjust the company's assets and workforce to anticipated future business levels. In addition to a permanent workforce adjustment of less than 2% of its worldwide employment base of 14,000 people in 2000, the company has been implementing temporary layoffs at its manufacturing facilities as its U.S. automaker customers reduce production and shut down facilities.

For 2000, the company expects to earn approximately $5.00 per share, before the charges, compared with $5.07 per share for 1999. The combined charges totaled $1.47 per share in 2000. The company anticipates that first quarter 2001 earnings per share could be down at least one-third from record 2000 first quarter results of $1.53 per share. The main factors putting pressure on earnings are continued production cuts at major North American customers and general industry instability.

Chicago - October 5, 1999 - Borg-Warner Automotive, Inc. announced that it has completed the acquisition of the Fluid Power Division of Eaton Corporation, one of the world's leading manufacturers of powertrain cooling solutions for the global automotive industry, for $310 million. Borg-Warner Automotive said it expects the transaction to be accretive to earnings, and both companies expect Eaton's interest in Fluid Power's Ningbo, China joint venture to be transferred in the next few weeks.

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Borg-Warner Automotive Opens Third European Technical Center / Will Develop Shifting Systems for New Generations of Automated Transmissions

Chicago, August 11, 1999 - Borg-Warner Automotive has opened a third technical center in Europe, the Transmission Advanced Product Development Center for Europe (TAPD-E) near Heidelberg, Germany. The Center's focus will be on advanced product development activity for clutch systems and control modules for automatic and automated manual transmissions for the European market.