DETROIT - Auto parts maker BorgWarner Inc raised its 2010 earnings outlook after posting a stronger-than-expected quarterly profit, propelled by improving industry production and rising demand for fuel-saving components such as turbochargers.

BorgWarner, whose shares rose nearly 10 percent, raised its 2010 earnings forecast on Thursday by about 50 percent to a range of $2.20 to $2.50 per share, above Wall Street's average estimate of $1.74.

The company also forecast revenue growth of 28 percent to 32 percent in 2010, up from its earlier range of 15 percent to 19 percent. Analysts on average expect sales to increase 23 percent to $4.9 billion, according to Thomson Reuters I/B/E/S.

Production levels in first quarter 2010 were stronger than expected, and demand appears to be based on fundamental improvements in the market, Chief Executive Officer Tim Manganello said in a statement.

The pace of recovery in North American production volumes continues to accelerate, Manganello said, ... and our sales growth in Asia continues to gain momentum.

Like other U.S. auto parts suppliers, BorgWarner is benefiting from sweeping cost reductions over the past year as U.S. vehicle production volumes recover from their worst downturn since the recession of the early 1980s.

BorgWarner's focus on components that can improve fuel economy and performance place it in a growth area of the auto industry, with carmakers aiming to meet stricter mileage and emissions standards over the next several years.

BorgWarner reported first-quarter net income of $76.2 million, or 63 cents per share, compared with a year-earlier loss of $7 million, or 6 cents per share.

Sales rose 57 percent to $1.29 billion.

Excluding one-time items, BorgWarner earned 65 cents per share. On that basis, analysts on average had expected profit of 41 cents per share on sales of $1.2 billion.

Shares of BorgWarner were up 9.6 percent at $43.80 in trading before the market opened. (Reporting by Soyoung Kim, editing by Dave Zimmerman and Lisa Von Ahn)