Auto parts maker BorgWarner (BWA) reported second quarter earnings of $1.00 per share on revenue of $2.55B, basically in-line with forecasts.

GUIDANCE: The auto parts maker said it expects a Q3 organic net sales change in the range of down 1.5% to up 1.5%, compared with Q3 2018 net sales of $2.48B. The divestiture of the thermostat product line will decrease year-over-year sales by approximately $29M. Excluding the impact of non-comparable items, Q3 EPS are expected to be within a range of 83c-90c per diluted share, against analyst consensus estimates of $1.02. For the year, Borg Warner lowered its revenue view to $9.94B-$10.18B. This implies year-over-year organic sales change of down 2.5% to flat. Additionally, the company expects its market to decline in the range of 3.5% to 5.0% in 2019 due to uncertain future sales of global light vehicle production in China. The company projected earnings for the year of $3.75-$4.00 per share, shy of consensus estimates of $4.12.

ASBESTOS LITIGATION: In a regulatory filing, the company noted it has concluded that it is reasonably possible that it may incur additional losses through 2074 for asbestos-related claims, in addition to amounts recorded, of up to approximately $100M as of June 30, 2019, and December 31, 2018. PRICE ACTION: Shares of BorgWarner are down over 5% in afternoon trading to $40.31 per share.

OTHERS TO WATCH: Other manufacturers of OEM auto parts include Continental AG (CTTAY), Visteon (VC), Lear (LEA), American Axle (AXL), and Goodyear Tire & Rubber Company (GT).