Jul. 30--BorgWarner Inc. reported a $35.9-million loss for the second quarter, as sales plunged 40%, illustrating the global automotive downturn's impact on even traditionally healthy auto suppliers.

The Auburn Hills-based maker of transmissions and engine-control technology said its results would have been worse had it not undertaken a restructuring that began last year and continued through the first half of 2009.

Over the last year, the company has cut its workforce by 5,000 or 28%, and implemented salary cuts.

CEO Tim Manganello projected BorgWarner will be profitable during the second half of this year.

"With the uncertainty surrounding the fate of General Motors and Chrysler behind us, we now have more clarity on the state of the industry," Manganello said in a statement. "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.

BorgWarner's loss of $35.9 million, or 31 cents a share, is compared with a profit of $87.5 million, or 74 cents per share, during the same quarter last year.

BorgWarner's sales fell to $916 million for the April through June period from $1.5 billion a year earlier.

Fuel-efficiency edge

BorgWarner's products include components that make vehicles more fuel-efficient, including turbochargers and dual-clutch transmissions. That's one reason why the supplier has weathered the global downturn in vehicle sales better than many other suppliers.

BorgWarner's stock price fell 8.7% Wednesday to close at $32.48, still well above its 52-week low of $14.62.

Contact JEWEL GOPWANI: 313-223-4550 or jgopwani@freepress.com

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