March 6, 2009 (FinancialWire) -- The board of BorgWarner Inc. (NYSE: BWA) has decided to suspend the company's quarterly dividend of $0.12 per share until global economic conditions improve.

Company CEO and board chairman Timothy Manganello said that, while the auto parts supplier was facing an "unprecedented discontinuity" in the marketplace, "We continue to expect positive earnings and positive cash flow from operations for the full year 2009 based on our previously stated auto industry production assumptions."

He said that BorgWarner would, "continue to reduce costs and to carefully manage liquidity to position ourselves well for the future. Our balance sheet remains strong and this action will further strengthen our cash flow by $60 million annually."

Manganello added that the company plans to reinstate its dividend, "as soon as the automotive industry returns to a normalized level of activity."

Auburn Hills, Michigan-based BorgWarner offers engineered components and systems for vehicle powertrain applications. The company operates manufacturing and technical facilities in 60 locations in 18 countries.

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