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Mar 31, 2022
BorgWarner Q1 2022 Earnings Report
BorgWarner's first quarter results were announced, featuring multiple electrification awards.
Key Takeaways
BorgWarner reported a decrease in net sales by 3% to $3,874 million, but organic sales increased by 1%. Net earnings were $0.84 per diluted share, with adjusted net earnings at $1.05 per diluted share. The company is on track to achieve more than $3.3 billion of electric vehicle revenue by 2025.
Announced first OEM business win for flexible battery management system (BMS) technology.
Selected to provide high-voltage hairpin (HVH) eMotors for a leading electric vehicle brand in China.
Will supply a leading Chinese OEM with a dual Inverter to be used in hybrid vehicles.
On track to achieve more than $3.3 billion of electric vehicle revenue by 2025.
Forward Guidance
The Company has provided 2022 full year guidance. Net sales are expected to be in the range of $15.5 billion to $16.0 billion. Full-year operating cash flow is expected to be in the range of $1,500 million to $1,550 million, while free cash flow is expected to be in the range of $650 million to $750 million.
Positive Outlook
- Net sales are expected to be in the range of $15.5 billion to $16.0 billion.
- Implies a year-over-year increase in organic sales of 10% to 13%.
- Acquisition of Santroll’s light vehicle eMotor business is expected to increase year-over-year sales by approximately $60 million to $70 million.
- Adjusted operating margin is expected to be in the range of 9.8% to 10.2%.
- Adjusted net earnings are expected to be within a range of $3.90 to $4.25 per diluted share.
Challenges Ahead
- Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $650 million.
- Divestiture of the Water Valley, Mississippi business will decrease year-over-year sales by approximately $177 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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