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BorgWarner Cuts Outlook As Profits Dip
BorgWarner Inc. reports its net sales in the third quarter fell 7% to $1.9 billion.
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BorgWarner Inc. reports its net sales in the third quarter fell 7% to $1.9 billion. Operating income from continuing operations declined 2% to $250 million, and net profit fell 6% to $167 million.
BorgWarner, which makes turbochargers and engine components, lowered its full-year sales and profit guidance. The company cites unfavorable exchange rates, a weak market in China and softening global demand for commercial vehicles.
Early this year BorgWarner expected sales to grow as much as 6%. Now it anticipates full-year revenue will fall 5%-6%. The company also predicts per-share earnings between $2.95 and $3, down from an initial forecast range of $3.35-$3.55.
CEO James Verrier tells analysts that 16% of BorgWarner’s revenue comes from Volkswagen AG. But he says less than half of one percent of its revenue is linked to diesels VW plans to recall because they were rigged to cheat on emission tests.
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