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BorgWarner
🇺🇸 NYSE:BWA
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Jun 30, 2021

BorgWarner Q2 2021 Earnings Report

Reported net sales increase of 164% and net earnings of $1.03 per diluted share, or $1.08 per diluted share excluding non-comparable items.

Key Takeaways

BorgWarner reported a significant increase in financial performance for Q2 2021. Net sales increased by 164% compared to Q2 2020, reaching $3,758 million. U.S. GAAP net earnings were $1.03 per diluted share, with adjusted net earnings at $1.08 per diluted share, excluding non-comparable items. The increase was primarily due to the recovery of global markets, the acquisition of Delphi Technologies, and increased demand for the company's products.

U.S. GAAP net sales reached $3,758 million, a 164% increase compared to Q2 2020.

Organic sales increased by 72% compared to the same period last year, excluding impacts from foreign currencies and acquisitions/divestitures.

U.S. GAAP operating income was $317 million, or 8.4% of net sales; adjusted operating income was $401 million, or 10.7% of net sales, excluding non-comparable items.

Net earnings were $1.03 per diluted share, with adjusted net earnings of $1.08 per diluted share, excluding non-comparable items.

Total Revenue
$3.76B
Previous year: $1.43B
+163.5%
EPS
$1.08
Previous year: -$0.14
-871.4%
Gross Profit
$762M
Previous year: $174M
+337.9%
Cash and Equivalents
$1.55B
Previous year: $2B
-22.5%
Free Cash Flow
$133M
Previous year: $10M
+1230.0%
Total Assets
$16.9B
Previous year: $10.3B
+63.1%

BorgWarner

BorgWarner

Forward Guidance

For the full-year 2021, net sales are expected to be in the range of $15.2 billion to $15.6 billion, implying a year-over-year increase in organic sales of 14% to 17%.

Positive Outlook

  • Net sales are expected to be in the range of $15.2 billion to $15.6 billion.
  • Implies a year-over-year increase in organic sales of 14% to 17%.
  • Weighted light and commercial vehicle markets are expected to increase approximately 8.5% to 11.0% in 2021.
  • Acquisition of AKASOL AG is expected to increase year-over-year sales by approximately $75 million.
  • Foreign currencies are expected to increase sales by approximately $520 million.

Challenges Ahead

  • Guidance assumes no additional production disruptions arising from COVID-19.
  • Operating margin for the full year is expected to be in the range of 8.7% to 9.3%.
  • Adjusted operating margin is expected to be in the range of 10.2% to 10.5%, excluding non-comparable items.
  • Net earnings for the full year are expected to be within a range of $2.80 to $3.21 per diluted share.
  • Adjusted net earnings are expected to be within a range of $4.15 to $4.40 per diluted share, excluding non-comparable items.

Company Overview

Full financial data and analysis

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