Auburn Hills, Michigan, October 27, 2022 – BorgWarner Inc. (NYSE: BWA) today reported third quarter results.
Charging Forward Update:
Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company’s ongoing operations, and related tax effects.
directly comparable U.S. GAAP measures. The increase in adjusted net earnings was primarily due to the benefit of customer pricing actions and the impact of higher revenue, partially offset by inflationary impacts on cost and higher R&D investment in the Company’s electrification portfolio.
Full Year 2022 Guidance: The Company has updated full year sales, margin and EPS guidance. Net sales are expected to be in the range of $15.4 billion to $15.7 billion, compared with 2021 sales of $14.8 billion. This implies a year-over-year increase in organic sales of 12% to 14%. The Company expects its weighted light and commercial vehicle markets to increase in the range of approximately 3% to 4.5% in 2022. Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $1 billion primarily due to the weakening of the Euro, the Korean Won and Chinese Renminbi against the U.S. dollar. The acquisitions of Santroll’s light vehicle eMotor business and Rhombus Energy Solutions are expected to increase year-over-year sales by an aggregate of approximately $45 million to $55 million. The divestiture of the Water Valley, Mississippi business will decrease year-over-year sales by approximately $177 million.
Operating margin for the full year is expected to be in the range of 8.6% to 8.9%. Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 10.0% to 10.2%. Net earnings are expected to be within a range of $3.71 to $3.91 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $4.25 to $4.45 per diluted share. Full-year operating cash flow is expected to be in the range of $1,450 million to $1,500 million, while free cash flow is expected to be in the range of $650 million to $750 million.
At 9:30 a.m. ET today, a brief conference call concerning third quarter 2022 results and guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.
For more than 130 years, BorgWarner Inc. (NYSE: BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we’re accelerating the world’s transition to eMobility -- to help build a cleaner, healthier, safer future for all.