Auburn Hills, Michigan, April 28, 2011 – BorgWarner Inc. (NYSE: BWA) today reported first quarter 2011 U.S. GAAP earnings of $1.00 per diluted share, 58.7% higher than a year ago and a new record for the company. Sales were up 34.5% from first quarter 2010, significantly higher than global vehicle production growth of approximately 5%.
First Quarter Results Highlights:
Company Highlights:
First Quarter Performance: “We began 2011 with a strong first quarter,” said Timothy Manganello, Chairman and CEO of BorgWarner. “Growing demand for our advanced powertrain technology enabled us to grow significantly faster than the market. Excluding the impact of currency and sales related to the Haldex and ENSA acquisitions, our sales were up approximately 26% in the first quarter, compared with a global market that grew only 5%. We successfully managed costs while growing our sales during the quarter resulting in a solid operating income margin of 10.4%. Earnings of $1.00 per diluted share in first quarter 2011 were a significant improvement from the same period a year ago.”
2011 Outlook: Today the company reiterated its 2011 earnings guidance range of $3.85 to $4.15 per diluted share. Revenue growth in 2011 is now expected to be 19% to 23% compared with 2010, up from the previous guidance range of 16% to 20%, primarily due to the Haldex Traction Systems acquisition that closed in January. The acquisition is expected to have minimal impact on 2011 earnings as purchase accounting adjustments will likely offset most of the operating income generated by the business. “Clearly there is great deal of concern regarding the disasters in Japan and their impact on the global automotive market,” Manganello said. “While uncertainty remains, we expect that the impact on our business will be limited. Vehicle demand remains strong in our largest markets and should offset the volume declines in Japan.”
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