(Reuters) -Auto parts supplier BorgWarner raised its annual sales forecast on Thursday, banking on stronger vehicle production and favorable exchange rates, sending its shares up over 2% in premarket trade.
Despite the tariffs on auto companies across the supply chain forcing suppliers to absorb more expenses, BorgWarner benefited from sustained demand for efficient hybrid systems and turbochargers as automakers ramped up their production.
Peer Aptiv PLC also forecast a bigger-than-expected annual adjusted profit.
BorgWarner now expects full-year revenue between $14 billion and $14.4 billion, up from its prior forecast of $13.6 billion to $14.2 billion.
On an adjusted basis, the company earned $1.21 per share for the quarter through June, compared with estimates of $1.08 per share, according to data compiled by LSEG.
Overall sales in the second quarter rose about 1% to $3.64 billion compared to the previous year. Analysts expected the company to notch quarterly sales of $3.61 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Vijay Kishore)