BorgWarner Provides Business Update Related to COVID-19


Auburn Hills, Michigan, March 24, 2020 – BorgWarner Inc. (NYSE: BWA) (the "Company") acknowledged that many original equipment manufacturer ("OEM") customers have announced that they have suspended or will suspend manufacturing operations, particularly in North America and Europe, on a temporary basis due to market conditions and matters associated with COVID-19/coronavirus. Significant reductions in automotive or truck production would have an adverse effect on the Company’s sales to OEMs in these regions, which comprised approximately 70% of the Company’s total sales in 2019. The temporary suspensions and other reductions in OEM production related to COVID-19/coronavirus are leading the Company to temporarily suspend operations at certain of the Company’s manufacturing and assembly facilities. Although the Company is currently unable to reasonably estimate the impact of this situation on its 2020 outlook due to the heightened level of uncertainty, the Company does expect this situation to have a material impact on its 2020 financial performance and is in the process of reassessing its full-year financial guidance. The Company plans to provide an update to its outlook on its first quarter earnings call scheduled for May 6, 2020.

As of March 20, 2020, the Company had liquidity of approximately $2,320 million, comprised of cash balances of approximately $820 million and an undrawn revolving credit facility of $1,500 million. The Company is in full compliance with its covenants under the revolving credit facility and has full access to its undrawn revolving credit facility. The Company noted that its total debt maturities through the end of 2021 are $250 million. Given its strong liquidity position, the Company believes it would have sufficient liquidity and maintain compliance with all covenants throughout the year even in an environment with significantly lower OEM production volumes.

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