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Mar 31, 2023
BorgWarner Q1 2023 Earnings Report
BorgWarner reported an increase in net sales and adjusted net earnings per diluted share for Q1 2023.
Key Takeaways
BorgWarner's Q1 2023 results showed an 8% increase in net sales to $4,180 million compared to Q1 2022. U.S. GAAP net earnings were $0.93 per diluted share, and adjusted net earnings were $1.09 per diluted share. The company expects 2023 eProduct sales of $2.3 billion to $2.6 billion.
Net sales increased by 8% to $4,180 million compared to Q1 2022.
Organic sales were up 12% compared to the first quarter 2022, excluding the impact of foreign currencies and acquisitions.
U.S. GAAP net earnings were $0.93 per diluted share.
Adjusted net earnings were $1.09 per diluted share, excluding non-comparable items.
BorgWarner
BorgWarner
Forward Guidance
The Company has updated full year sales, margin and EPS guidance.
Positive Outlook
- Net sales are expected to be in the range of $17.1 billion to $17.9 billion, compared with 2022 sales of $15.8 billion.
- This implies a year-over-year increase in organic sales of 7.5% to 12.5%.
- Foreign currencies are expected to result in a year-over-year increase in sales of approximately $55 million.
- Operating margin for the full year is expected to be in the range of 8.7% to 9.0%.
- Net earnings are expected to be within a range of $3.87 to $4.24 per diluted share.
Challenges Ahead
- The Company expects its weighted light and commercial vehicle markets to increase in the range of approximately 0% to 3% in 2023.
- The acquisitions of Santroll’s light vehicle eMotor business, Rhombus Energy Solutions, Drivetek and the electric vehicle solution, smart grid and smart energy businesses of Hubei Surpass Sun Electric are expected to increase year-over-year sales by an aggregate of approximately $70 million.
- Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 10.0% to 10.4%.
- Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $4.60 to $5.15 per diluted share.
- Full-year operating cash flow is expected to be in the range of $1,400 million to $1,550 million, while free cash flow is expected to be in the range of $550 million to $650 million.