BORGWARNER REPORTS RECORD EARNINGS OF $0.89 PER DILUTED SHARE AND RECORD SALES OF $1.5 BILLION IN THE FOURTH QUARTER 2010 FULL YEAR SALES AND EARNINGS REACH AN ALL-TIME HIGH

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:

  • Record sales of $1,533.4 million, up 28.0% from fourth quarter 2009.
  • Record earnings of $0.89 per diluted share, up 98% from $0.45 per diluted share in fourth quarter 2009. For comparison with other periods, fourth quarter 2009 earnings were $0.42 per diluted share excluding a non-recurring item.
  • Operating income was $157.4 million, or 10.3% of sales.
  • The Company repurchased approximately 2.1 million shares of its common stock.
  • Announced $2.3 billion of expected net new business for 2011 through 2013, a 28% increase over its previous three-year net new business.

Full Year Highlights:

  • Record sales of $5,652.8 million, up 42.7% from 2009.
  • U.S. GAAP earnings were $3.07 per diluted share. For comparison with other years, 2010 earnings were a record $3.02 per diluted share excluding non-recurring items. 
  • Operating income was $504.3 million, or 8.9% of sales. Excluding non-recurring items, operating income was 9.3% of 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 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.  

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