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Mar 31, 2021
BorgWarner Q1 2021 Earnings Report
Reported record net sales, up 76% compared with Q1 2020.
Key Takeaways
BorgWarner reported a significant increase in net sales for the first quarter of 2021, driven by the acquisition of Delphi Technologies, increased product demand, and the recovery of global markets from COVID-19 effects. Net sales reached $4,009 million, a 76% increase from the previous year, with adjusted earnings per diluted share rising to $1.21.
U.S. GAAP net sales reached $4,009 million, a 76% increase compared to Q1 2020.
Organic sales increased by 18% compared to the first quarter of 2020, excluding the impact of foreign currencies and net M&A.
U.S. GAAP operating income was $403 million, representing 10.1% of net sales.
Adjusted net earnings were $1.21 per diluted share, excluding non-comparable items.
BorgWarner
BorgWarner
Forward Guidance
For the full year 2021, BorgWarner expects net sales to be in the range of $14.8 billion to $15.4 billion, with organic sales increasing by 12% to 17%. Adjusted net earnings are projected to be between $4.00 and $4.35 per diluted share, and free cash flow is expected to range from $800 million to $900 million.
Positive Outlook
- Net sales are expected to be in the range of $14.8 billion to $15.4 billion.
- Organic sales are projected to increase by 12% to 17%.
- Foreign currencies are expected to increase sales by approximately $400 million.
- Adjusted operating margin is expected to be in the range of 10.1% to 10.5%.
- Free cash flow is expected to be in the range of $800 million to $900 million.
Challenges Ahead
- Guidance assumes no additional production disruptions from COVID-19.
- Operating margin is expected to be in the range of 8.7% to 9.4%.
- Net earnings are expected to be within a range of $3.42 to $3.92 per diluted share.
- Weighted light and commercial vehicle markets are expected to increase in the range of approximately 9% to 12% in 2021.
- Full-year operating cash flow is expected to be in the range of $1,525 million to $1,675 million.