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Dec 31, 2020
BorgWarner Q4 2020 Earnings Report
BorgWarner reported increased net sales compared to Q4 2019 and net cash provided by operating activities of $416 million.
Key Takeaways
BorgWarner's Q4 2020 results showed a significant increase in net sales, up 53.4% compared to Q4 2019, reaching $3,926 million. Net income was $358 million, or $1.52 per diluted share. The company also reported net cash provided by operating activities of $416 million and free cash flow of $197 million.
U.S. GAAP net sales of $3,926 million, up 53.4% compared with fourth quarter 2019.
U.S. GAAP net income of $358 million, or $1.52 per diluted share.
U.S. GAAP operating income of $214 million, or 5.5% of net sales.
Net cash provided by operating activities of $416 million.
BorgWarner
BorgWarner
Forward Guidance
The Company has provided 2021 full year guidance. Net sales are expected to be in the range of $14.7 billion to $15.3 billion. Adjusted net earnings are expected to be within a range of $3.85 to $4.25 per diluted share.
Positive Outlook
- Net sales are expected to be in the range of $14.7 billion to $15.3 billion, compared with 2020 pro forma combined sales of $12.8 billion.
- This implies a year-over-year increase in organic sales of 12% to 17%.
- Foreign currencies are expected to result in a year-over-year increase in sales of approximately $355 million, primarily due to the strengthening of the Euro and Chinese Renminbi against the U.S. dollar.
- Operating margin is expected to be in the range of 8.6% to 9.5%.
- Adjusted operating margin is expected to be in the range of 10.0% to 10.5%.
Challenges Ahead
- Net earnings are expected to be within a range of $3.23 to $3.77 per diluted share.
- Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $3.85 to $4.25 per diluted share.
- Full-year operating cash flow is expected to be in the range of $1,450 million to $1,600 million.
- Free cash flow is expected to be in the range of $800 million to $900 million.
- The Company expects its weighted light and commercial vehicle markets to increase in the range of approximately 11% to 14% in 2021.