BorgWarner posts 4Q earnings of $220M

AUBURN HILLS – BorgWarner Inc. (BWA) on Thursday reported fourth-quarter earnings of $220 million.

On a per-share basis, the Auburn Hills, Michigan-based company said it had net income of $1.06. Earnings, adjusted for one-time gains and costs, came to $1.17 per share.

The results topped Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.12 per share.

The auto parts supplier posted revenue of $2.56 billion in the period, which met Street forecasts.

For the year, the company reported profit of $746 million, or $3.61 per share. Revenue was reported as $10.17 billion.

BorgWarner expects full-year earnings in the range of $3.85 to $4.15 per share, with revenue in the range of $9.75 billion to $10.07 billion. BorgWarner shares have dropped 20% since the beginning of the year.

Newspaper chain McClatchy files for Chapter 11

Newspaper chain McClatchy, owner of publications such as the Miami Herald and Kansas City Star, filed for Chapter 11 bankruptcy protection Thursday after grappling with a pension crisis and the industry’s financial challenges.

The Sacramento, California-based company proposed a deal to transfer ownership to one of its lenders and its largest shareholder, hedge fund Chatham Asset Management, and others. As part of the deal, the McClatchy family is expected to give up control of the company after more than 160 years.

The newspaper chain also said it expects to transfer management of its $1.4 billion pension plan to the U.S. government’s Pension Benefit Guaranty Corp. The costs of the company’s pension plan weighed it down in recent years.

McClatchy said Thursday it believes its plan “would not have an adverse impact on qualified pension benefits for substantially all plan participants.”

In a court filing, McClatchy listed the PBGC as its largest unsecured creditor with a claim of $530 million. The PBGC and a judge would have to sign off on the company’s pension plan and sale.

Tesla offers $2B in added shares, discloses subpoena

Tesla said that is selling $2 billion worth of additional stock, that its U.S. revenue fell last year and that securities regulators are scrutinizing its finances.

All of the developments Thursday were disclosed in filings with U.S. Securities and Exchange Commission, which in December subpoenaed financial data and contracts, including the company’s financing arrangements. The Palo Alto, California, company’s shares jumped 3.7% despite the disclosures and the additional 2.65 million shares that could dilute the value of the 180 million shares now on the market.

The surprise sale taps into Tesla’s rocketing stock price over the past eight months, but comes just two weeks after CEO Elon Musk said the company had enough cash to fund its capital programs and it didn’t need to raise any more money.

In a statement, Tesla said Musk will buy $10 million in stock while billionaire board member and Oracle co-founder Larry Ellison will buy shares worth $1 million. The electric car and solar panel maker will use the proceeds to strengthen its balance sheet and for general corporate purposes.

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Compiled from USA TODAY Network

and Associated Press reports