Components maker BorgWarner said it lost $35.9 million, or 31 cents a share, in the second quarter, affected by a 39.6 percent drop in sales to $916.2 million
, on lower production volumes and weak demand. In comparison, the second quarter of 2008 saw income of $87.5 million, or 74 cents a share. Sales during the year-ago quarter was $1.517 billion.

The loss includes a loss of 29 cents a share related to restructuring activities, the company says. However, the company believes the restructuring helped its second quarter performance.

"The restructuring actions taken by our company in 2008 buoyed our second quarter results," said Timothy Manganello, chairman and CEO. "Further restructuring actions were taken in the second quarter to proactively address near-term challenges and to position the company for healthy returns as the market recovers."

BorgWarner says the impact of foreign currencies, primarily the lower Euro, reduced sales by $99.3 million in the second quarter.

Weak demand for engine products caused the engine division's sales to fall to $670.4 million, or 39.5 percent, compared with $1.109 billion in the year-ago period. Meanwhile, lower production volumes impacted its drivetrain segment sales, which landed at $248.8 million, down 40 percent from $414.4 million in sales in the second quarter of 2008.

The company is hopeful that production will pick up during the second half of the year.

"As a result, we expect to be profitable in the second half, which is consistent with our previously stated targets of positive cash flow and earnings for full year 2009," Manganello said.