Auburn Hills, Michigan, February 10, 2011 – BorgWarner Inc. (NYSE: BWA) today reported fourth quarter 2010 U.S. GAAP earnings of $0.89 per diluted share, a new record for the Company and up 98% compared with U.S. GAAP earnings of $0.45 per diluted share in fourth quarter 2009. Sales were up 28.0% from fourth quarter 2009, sharply higher than global vehicle production growth of approximately 4%.
Fourth Quarter Highlights:
Full Year Highlights:
Comment and Outlook: “The fourth quarter was a strong finish to an exceptional year for our company,” said Timothy Manganello, Chairman and CEO of BorgWarner. “Our sales were up 28% in fourth quarter 2010 compared with fourth quarter 2009, or 33% excluding the impact of currency, while global vehicle production was up 5%. New business growth was the driving force behind our fourth quarter results as it had been throughout the year. Adoption rates of our leading-edge powertrain technology continued to outpace vehicle production growth in every major region of the world. A continued focus on execution at our operations resulted in a strong operating income margin of 10.3% in the fourth quarter, up sharply from 5.6% a year ago.” “For the full year, we posted record sales and earnings, and our operating income margin was the highest it has been in several years. These are remarkable accomplishments considering they were achieved with depressed volumes and immediately following one of the most difficult periods in our history. However, we do not believe that 2010 was a peak year. In 2011, we expect 16% to 20% sales growth and 30% to 40% earnings growth compared with 2010, and an operating income margin of 10.5% or better,” said Manganello. Please download the complete Press Release on the right side.