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BORGWARNER REPORTS RECORD FOURTH QUARTER EARNINGS OF $1.19 PER DILUTED SHARE, EXCLUDING NON-RECURRING ITEMS, UP 34% FROM FOURTH QUARTER 2010 ON 16% SALES GROWTH

FOURTH QUARTER 2011 OPERATING INCOME AT 12.0% OF NET SALES, EXCLUDING NON-RECURRING ITEMS 2011 FULL YEAR NET SALES AND EARNINGS REACH RECORD LEVELS

Auburn Hills, Michigan, February 14, 2012 – BorgWarner Inc. (NYSE: BWA) today reported fourth quarter 2011 U.S. GAAP earnings of $1.00 per diluted share compared with U.S. GAAP earnings of $0.89 per diluted share in fourth quarter 2010. Net sales were up 16% from fourth quarter 2010, while global vehicle production was up approximately 1%.

Fourth Quarter Highlights:

  • Net sales of $1,774 million, up 16% from fourth quarter 2010.
  • U.S. GAAP earnings of $1.00 per diluted share. For comparison with other periods, fourth quarter 2011 earnings were $1.19 per diluted share, excluding non-recurring items, up 34% from fourth quarter 2010.
  • Operating income of $191 million, or 10.8% of net sales. Excluding non-recurring items, operating income was 12.0% of net sales. Full Year Highlights:
  • Record net sales of $7,115 million, up 26% from 2010.
  • U.S. GAAP earnings of $4.45 per diluted share. For comparison with other periods, 2011 earnings were $4.45 per diluted share, excluding net non-recurring items, up 47% from 2010 comparable results.
  • Operating income was $798 million, or 11.2% of net sales. Excluding non-recurring items, operating income was 11.1% of net sales.

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 16% in the fourth quarter of 2011 compared with fourth quarter 2010. Excluding the impact of currency and sales related to the acquisition of the Traction Systems division of Haldex, which closed in first quarter 2011, our sales were up 12%. Global vehicle production was up 1% during the same period. New business growth drove our fourth quarter results as it did throughout the year. Adoption rates of our leading-edge powertrain technology continued to outpace vehicle production in every major region of the world. The continued focus on execution at our operations resulted in a very strong operating income margin of 12.0% in the fourth quarter, excluding non-recurring items. This is sharply higher than the 10.3% operating income margin posted in the fourth quarter of 2010.” “For the full year, our sales, earnings and operating income margin set all-time records. In 2012, we expect 10% to 12% sales growth compared with 2011, earnings of $5.35 to $5.65 per diluted share and an operating income margin of 11.5% or better. This should continue our record financial pace,” said Manganello. Please download the complete Press Release on the right side.  

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