AUBURN HILLS, Mich.,
July 30 /PRNewswire-FirstCall/ --
BorgWarner Inc. (NYSE: BWA) today reported second quarter 2010 U.S.
GAAP earnings of $0.68 per diluted
share. Excluding non-recurring items in both periods, earnings were
$0.78 per diluted share compared with
a net loss of $(0.05) per diluted
share a year ago. Sales were up 55.2% from second quarter
2009 as growing demand for its fuel-efficient technologies drove
the global powertrain systems supplier's strong results.
Second Quarter Highlights:
- Sales were $1,421.7 million, up
55.2% from second quarter 2009.
- U.S. GAAP earnings were $0.68 per
diluted share. For comparison with other periods, second quarter
2010 earnings were $0.78 per diluted
share excluding non-recurring items.
- Non-recurring items included a $28.0
million environmental litigation settlement, partially
offset by an $8.0 million equity
investment gain.
- Operating income was $117.3
million, on a reported basis. Excluding non-recurring items,
operating income was $137.3 million,
or 9.7% of sales.
- The Company repurchased approximately 4.1 million shares of its
common stock.
- Net debt to capital ratio at the end of the quarter was
27.5%.
Second Quarter Performance: "Growing demand for our
leading-edge powertrain products drove our second quarter results,"
said Timothy Manganello, Chairman
and CEO of BorgWarner. "Our sales were up 55% in second
quarter 2010 compared with second quarter 2009, while global
vehicle production was up 29%. The primary driver of our
out-performance was new business growth as our product technology
continued to penetrate the global market. Favorable macroeconomic
trends, such as the continued volume shift in Europe toward vehicles with higher BorgWarner
content, including diesels, also boosted results.
"In addition, a continued sharp focus on managing costs while
sales grew resulted in an operating income margin of 9.7% in the
quarter, excluding non-recurring items, which is the highest
quarterly operating income margin that we have achieved since
2002."
2010 Improved Outlook: Today the Company raised its
earnings guidance for 2010 to a range of $2.60 to $2.80 per diluted share from a previous
range of $2.20 to $2.50 per diluted
share. Both the current guidance range and the previous guidance
range exclude non-recurring items. Revenue growth in 2010 is
now expected to be 32% to 35% compared with 2009. "Our outlook for
vehicle production in North
America, Europe and
China has improved since we last
provided guidance," Manganello said. "More importantly, we expect
our growth to outpace the market as demand for our products
continues to gain momentum. It is our expectation that 2010 will be
a record earnings year for the Company."
Financial Results: Sales were $1,421.7 million in second quarter 2010, up 55.2%
from $916.2 million in second quarter
2009. Net earnings in the quarter were $82.8 million, or $0.68 per diluted share, compared with a net loss
of $(35.9) million, or $(0.31) per diluted share in second quarter 2009.
Second quarter 2010 net earnings included net non-recurring items
of $(0.10) per diluted share.
Second quarter 2009 net earnings included net non-recurring
items of $(0.26) per diluted share.
These items are listed in a table below as reconciliations of
non-U.S. GAAP measures, which are provided by the Company for
comparison with other results, and the most directly comparable
U.S. GAAP measures. The impact of foreign currencies in
second quarter 2010, primarily the Euro, lowered sales by
$24.1 million, while the impact on
net earnings was $0.01 per diluted
share.
For the first six months of 2010, sales were $2,708.5 million, up 56.0% compared with
$1,735.7 million in the first six
months of 2009. Net income in the first six months of 2010
was $159.0 million, or $1.31 per diluted share, compared with a net loss
of $(42.9) million, or $(0.37) per diluted share, in the first six
months of 2009. Net earnings in the first six months of 2010
included net non-recurring items of $(0.12) per diluted share. The Company's net loss
in the first six months of 2009 included net non-recurring items of
$(0.20) per diluted share. These
items are listed in a table below as reconciliations of non-U.S.
GAAP measures, which are provided by the Company for comparison
with other results, and the most directly comparable U.S. GAAP
measures. The impact of foreign currencies, primarily the
Euro, increased sales by $35.5
million in the first six months of 2010 compared with the
first six months of 2009, while the impact on net earnings was
$0.05 per diluted share.
The following table reconciles the Company's non-U.S. GAAP
measures included in the press release, which are provided for
comparison with other results, and the most directly comparable
U.S. GAAP measures:
|
|
Net earnings or (loss) per
diluted share
|
Second Quarter
|
First Six Months
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
Non – U.S. GAAP
|
$0.78
|
$(0.05)
|
$1.42
|
$(0.17)
|
|
|
|
|
|
|
|
Reconciliations:
|
|
|
|
|
|
Environmental litigation
settlement
|
(0.14)
|
|
(0.14)
|
|
|
BERU-Eichenauer equity
investment gain
|
0.04
|
|
0.04
|
|
|
Medicare Part D tax law
change
|
|
|
(0.02)
|
|
|
Restructuring
activities
|
|
(0.29)
|
|
(0.29)
|
|
Interest rate derivative
agreements
|
|
0.04
|
|
(0.03)
|
|
Adoption of ASC Topic
805—acquisition activity
|
|
|
|
(0.03)
|
|
Muncie closure retiree
obligation net gain
|
|
|
|
0.15
|
|
|
|
|
|
|
|
U.S. GAAP
|
$0.68
|
$(0.31)*
|
$1.31*
|
$(0.37)
|
|
|
|
*Column does not add due to
rounding
|
|
|
|
|
|
|
Net cash provided by operating activities was $208.3 million in the first six months of 2010
compared with $173.8 million in the
first six months of 2009. Investments in capital
expenditures, including tooling outlays, totaled $107.4 million in the first six months of 2010,
compared with $88.3 million in the
first six months of 2009. Balance sheet debt increased by
$124.0 million and cash on hand
decreased by $169.9 million compared
with the end of 2009 primarily due to the acquisition of Dytech
ENSA SL, the repurchase of approximately 4.1 million shares of
common stock and the adoption of amended ASC Topic 860,
"Accounting for Transfer of Financial Assets", which
requires the Company to reflect its $50
million receivables securitization facility in its financial
statements. The ratio of balance sheet debt net of cash to capital
was 27.5% at the end of second quarter 2010 compared with 17.9% at
the end of 2009.
Engine Group Results: Engine segment net sales were
$1,017.6 million in second quarter
2010, up 51.8% from $670.4 million in
the prior year's quarter as a result of strong turbocharger and
timing system growth in the Asian markets along with solid
turbocharger growth in Europe.
Excluding the impact of currency, sales were up approximately 55%.
Adjusted earnings before interest and income taxes were
$132.8 million for the Engine Group
in second quarter 2010 compared with $44.0
million in second quarter 2009.
Drivetrain Group Results: Drivetrain segment net
sales were $408.7 million in second
quarter 2010, up 64.3% from $248.8
million in the prior year's quarter. Excluding the
impact of currency, sales were up approximately 66%.
Four-wheel drive system sales in the Asian markets were
sharply higher in second quarter 2010 compared with second quarter
2009. Also, higher dual clutch transmission modules and other
automatic transmission component sales in Europe boosted results. Adjusted earnings
before interest and income taxes were $37.3
million for the Drivetrain Group in second quarter 2010
compared with a loss of $(8.8)
million in second quarter 2009.
Recent Highlights:
- The Company's Board of Directors authorized the repurchase of
an additional 5 million shares of common stock. The new
authorization was made in anticipation of exhausting the limited
number of shares that remain available under the previous
authorization from 2008. The Company has maintained share
repurchase programs since 1997.
- In April, the Company acquired Dytech ENSA SL, a producer of
exhaust gas recirculation (EGR) coolers, EGR tubes, and integrated
EGR modules including valves for automotive and commercial vehicle
applications, both on- and off-road. With locations in Spain, Portugal and India, Dytech ENSA employs approximately 1,000
people and supplies customers such as Renault/Nissan, VW/Audi,
Ford, Fiat, Navistar, GM, Daimler, PSA, Suzuki, Mahindra &
Mahindra, TATA, Ashok Leyland, MAN,
and IVECO. Dytech ENSA's annual sales for 2009 were approximately
$180 million.
- In anticipation of market growth expected for its electric
cabin heaters, BorgWarner bought out its joint venture partner in
BERU-Eichenauer GmbH, which was formed to develop and manufacture
electric cabin heaters. The acquisition formally took effect on
May 1, 2010.
- BorgWarner has been selected by JCB Power Systems to supply
both wastegate and variable turbine geometry (VTG) turbochargers
for the new versions of its Dieselmax 4.4-Liter engines starting in
2012. Designated the JCB 'Ecomax T4', the engines will be used in a
number of applications including agricultural, construction, and
materials handling machinery. BorgWarner's turbocharger technology
will help this new engine meet stringent Interim Tier 4/Stage III B
regulations without the need for exhaust aftertreatment or (DPF)
Diesel Particulate Filters. These regulations require up to a 50%
reduction in nitrogen oxide (NOx) emissions compared with previous
standards.
- Powered by BorgWarner's regulated two-stage (R2S®) and variable
turbine geometry (VTG) turbocharging technologies, the new 740d
boasts BMW's most powerful 3.0-liter straight six-cylinder diesel
engine, while improving fuel economy up to 4 percent compared with
its predecessor. For the first time in a passenger car, the
combination of direct fuel injection plus R2S® and VTG
turbocharging sets new standards in improved performance and torque
as well as reduced emissions and increased fuel economy.
Accelerating from 0 to 62 mph (100 km/h) in just 6.3 seconds, the
BMW 740d achieves a combined 34 mpg (6.9 liters/100 km) and meets
Euro 5 emissions standards.
- BorgWarner's improved Cool Logic® variable speed fan drives are
now standard equipment on MACK® Granite®, Titan® and Pinnacle™
model heavy-duty commercial diesel trucks, used in dump truck,
mixer and snow plow applications, as well as highway hauling. Based
on four million miles of fleet testing, Cool Logic fan drives
improve fuel economy up to 3% (depending on route terrain, truck
load and duty cycle) compared with traditional fan drives,
delivering substantial savings to truck fleet owners.
- BorgWarner has been chosen to supply its regulated two-stage
turbocharging (R2S®) technology to MAN for engines used to power
medium-duty trucks and urban buses in the Latin American market
beginning in 2012. To meet growing demand for increased power
output and reduced emissions, MAN selected BorgWarner's innovative
turbocharging system for its common-rail, four-cylinder and
six-cylinder diesel. Produced at BorgWarner's facility in Campinas,
Brazil, the optimized
turbocharging system helps the new engines achieve impressive fuel
economy, reduced emissions and improved performance. MAN
Latin America leads the truck
market in Brazil with a market
share of more than 30 percent.
At 9:30 a.m. ET today, a brief
conference call concerning second quarter results will be webcast
at: http://www.borgwarner.com/invest/webcasts.shtml.
Auburn Hills, Michigan-based
BorgWarner Inc. (NYSE: BWA) is a product leader in highly
engineered components and systems for vehicle powertrain
applications worldwide. The company operates manufacturing and
technical facilities in 60 locations in 18 countries. Customers
include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors,
Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA,
and MAN. The Internet address for BorgWarner is:
http://www.borgwarner.com
Statements contained in this news release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. Words
such as "outlook", "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements are subject to
risks and uncertainties, many of which are difficult to predict and
generally beyond our control, that could cause actual results to
differ materially from those expressed, projected or implied in or
by the forward-looking statements. Such risks and
uncertainties include: fluctuations in domestic or foreign vehicle
production, the continued use of outside suppliers, fluctuations in
demand for vehicles containing our products, changes in general
economic conditions, and other risks detailed in our filings with
the Securities and Exchange Commission, including the Risk Factors,
identified in our most recently filed Annual Report on Form
10-K. We do not undertake any obligation to update any
forward-looking statements.
BorgWarner Inc.
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
(millions of dollars, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 1,421.7
|
|
$ 916.2
|
|
$ 2,708.5
|
|
$ 1,735.7
|
|
Cost of sales
|
|
1,146.3
|
|
800.0
|
|
2,194.6
|
|
1,539.9
|
|
Gross profit
|
|
275.4
|
|
116.2
|
|
513.9
|
|
195.8
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
137.8
|
|
115.4
|
|
268.1
|
|
189.5
|
|
Restructuring expense
|
|
-
|
|
50.3
|
|
-
|
|
50.3
|
|
Other expense
|
|
20.3
|
|
-
|
|
21.9
|
|
-
|
|
Operating income
(loss)
|
|
117.3
|
|
(49.5)
|
|
223.9
|
|
(44.0)
|
|
|
|
|
|
|
|
|
|
|
|
Equity in affiliates' earnings,
net of tax
|
|
(10.0)
|
|
(4.8)
|
|
(19.3)
|
|
(5.0)
|
|
Interest income
|
|
(0.6)
|
|
(0.7)
|
|
(1.2)
|
|
(1.2)
|
|
Interest expense and finance
charges
|
|
14.2
|
|
9.0
|
|
28.4
|
|
28.1
|
|
Earnings (loss) before income
taxes and noncontrolling interest
|
|
113.7
|
|
(53.0)
|
|
216.0
|
|
(65.9)
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes
|
|
26.0
|
|
(19.1)
|
|
46.9
|
|
(25.7)
|
|
Net earnings (loss)
|
|
87.7
|
|
(33.9)
|
|
169.1
|
|
(40.2)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to the
noncontrolling interest, net of tax
|
|
4.9
|
|
2.0
|
|
10.1
|
|
2.7
|
|
Net earnings (loss) attributable
to BorgWarner Inc.
|
|
$
82.8
|
|
$ (35.9)
|
|
$ 159.0
|
|
$ (42.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to diluted
earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to BorgWarner Inc.
|
|
$
82.8
|
|
$ (35.9)
|
|
$ 159.0
|
|
$ (42.9)
|
|
Addback net interest expense on
convertible debt
|
|
5.1
|
|
-
|
|
10.1
|
|
-
|
|
Diluted net earnings (loss)
attributable to BorgWarner Inc.
|
|
$
87.9
|
|
$ (35.9)
|
|
$ 169.1
|
|
$ (42.9)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share -
diluted
|
|
$
0.68
|
|
$ (0.31)
|
|
$
1.31
|
|
$ (0.37)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (millions) - diluted
|
|
129.1
|
|
116.6
|
|
129.4
|
|
116.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures, including
tooling outlays
|
|
$
52.1
|
|
$ 49.7
|
|
$ 107.4
|
|
$
88.3
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
Fixed assets and
tooling
|
|
$
57.4
|
|
$ 56.8
|
|
$ 114.5
|
|
$ 114.1
|
|
Other
|
|
7.1
|
|
6.1
|
|
13.6
|
|
11.9
|
|
|
|
$
64.5
|
|
$ 62.9
|
|
$ 128.1
|
|
$ 126.0
|
|
|
|
|
|
|
|
|
|
|
BorgWarner Inc.
|
|
|
|
|
|
|
|
|
|
Net Sales by Reporting Segment
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Engine
|
|
$ 1,017.6
|
|
$ 670.4
|
|
$ 1,923.6
|
|
$ 1,294.9
|
|
|
|
|
|
|
|
|
|
|
|
Drivetrain
|
|
408.7
|
|
248.8
|
|
794.5
|
|
447.0
|
|
|
|
|
|
|
|
|
|
|
|
Inter-segment
eliminations
|
|
(4.6)
|
|
(3.0)
|
|
(9.6)
|
|
(6.2)
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 1,421.7
|
|
$ 916.2
|
|
$ 2,708.5
|
|
$ 1,735.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings (Loss) Before
Interest and Income Taxes ("Adjusted EBIT") (Unaudited)
|
|
|
|
|
|
|
|
|
|
(millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Engine
|
|
$ 132.8
|
|
$ 44.0
|
|
$ 239.5
|
|
$
79.9
|
|
|
|
|
|
|
|
|
|
|
|
Drivetrain
|
|
37.3
|
|
(8.8)
|
|
74.0
|
|
(41.5)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBIT
|
|
170.1
|
|
35.2
|
|
313.5
|
|
38.4
|
|
|
|
|
|
|
|
|
|
|
|
Muncie closure retiree
obligation net gain
|
|
-
|
|
-
|
|
-
|
|
(27.9)
|
|
|
|
|
|
|
|
|
|
|
|
Environmental litigation
settlement
|
|
28.0
|
|
-
|
|
28.0
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
BERU-Eichenauer equity
investment gain
|
|
(8.0)
|
|
-
|
|
(8.0)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Corporate, including equity in
affiliates' earnings and stock-based compensation
|
|
22.8
|
|
29.6
|
|
50.3
|
|
55.0
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expense
|
|
-
|
|
50.3
|
|
-
|
|
50.3
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
(0.6)
|
|
(0.7)
|
|
(1.2)
|
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and finance
charges
|
|
14.2
|
|
9.0
|
|
28.4
|
|
28.1
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income
taxes and noncontrolling interest
|
|
113.7
|
|
(53.0)
|
|
216.0
|
|
(65.9)
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for income
taxes
|
|
26.0
|
|
(19.1)
|
|
46.9
|
|
(25.7)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
87.7
|
|
(33.9)
|
|
169.1
|
|
(40.2)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to the
noncontrolling interest, net of tax
|
|
4.9
|
|
2.0
|
|
10.1
|
|
2.7
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to BorgWarner Inc.
|
|
$
82.8
|
|
$ (35.9)
|
|
$ 159.0
|
|
$ (42.9)
|
|
|
|
|
|
|
|
|
|
|
BorgWarner Inc.
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets (Unaudited)
|
|
|
|
|
|
(millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2010
|
|
December 31, 2009
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
187.5
|
|
$
357.4
|
|
Receivables, net
|
|
977.4
|
|
732.0
|
|
Inventories, net
|
|
378.8
|
|
314.3
|
|
Other current assets
|
|
158.6
|
|
148.1
|
|
Total current assets
|
|
1,702.3
|
|
1,551.8
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
1,405.9
|
|
1,490.3
|
|
Other non-current
assets
|
|
1,861.0
|
|
1,769.3
|
|
Total assets
|
|
$
4,969.2
|
|
$
4,811.4
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable and other
short-term debt
|
|
$
185.7
|
|
$
69.1
|
|
Accounts payable and accrued
expenses
|
|
1,161.8
|
|
977.1
|
|
Income taxes payable
|
|
34.8
|
|
-
|
|
Total current
liabilities
|
|
1,382.3
|
|
1,046.2
|
|
|
|
|
|
|
|
Long-term debt
|
|
780.6
|
|
773.2
|
|
Other non-current
liabilities
|
|
748.2
|
|
769.3
|
|
|
|
|
|
|
|
Total BorgWarner Inc.
stockholders' equity
|
|
2,016.1
|
|
2,185.3
|
|
Noncontrolling
interest
|
|
42.0
|
|
37.4
|
|
Total stockholders'
equity
|
|
2,058.1
|
|
2,222.7
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
4,969.2
|
|
$
4,811.4
|
|
|
|
|
|
|
BorgWarner Inc.
|
|
|
|
|
|
Condensed Consolidated
Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
(millions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
Net earnings (loss)
|
|
$ 169.1
|
|
$ (40.2)
|
|
Non-cash charges (credits) to
operations:
|
|
|
|
|
|
Depreciation and
amortization
|
|
128.1
|
|
126.0
|
|
Environmental litigation
settlement, net of cash paid
|
|
28.0
|
|
-
|
|
Restructuring expense, net of
cash paid
|
|
-
|
|
44.0
|
|
Convertible bond premium
amortization
|
|
8.9
|
|
4.2
|
|
Deferred income tax
benefit
|
|
(15.7)
|
|
(39.3)
|
|
BERU-Eichenauer equity
investment gain
|
|
(8.0)
|
|
-
|
|
Other non-cash items
|
|
(8.1)
|
|
48.5
|
|
Net earnings (loss) adjusted for
non-cash charges to operations
|
|
302.3
|
|
143.2
|
|
Changes in assets and
liabilities
|
|
(94.0)
|
|
30.6
|
|
Net cash provided by operating
activities
|
|
208.3
|
|
173.8
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
|
Capital expenditures, including
tooling outlays
|
|
(107.4)
|
|
(88.3)
|
|
Net proceeds from asset
disposals
|
|
3.9
|
|
13.7
|
|
Payments for business acquired,
net of cash acquired
|
|
(164.7)
|
|
(7.5)
|
|
Proceeds from sale of
business
|
|
5.0
|
|
-
|
|
Net cash used in investing
activities
|
|
(263.2)
|
|
(82.1)
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
Net change in notes
payable
|
|
67.8
|
|
(87.1)
|
|
Net change in long-term
debt
|
|
(11.2)
|
|
223.6
|
|
Payments for noncontrolling
interest acquired
|
|
-
|
|
(14.8)
|
|
Payment for purchase of bond
hedge, net of proceeds from warrant issuance
|
|
-
|
|
(25.2)
|
|
Payment for purchase of treasury
stock
|
|
(154.8)
|
|
-
|
|
Reduction in accounts receivable
securitization facility
|
|
-
|
|
(50.0)
|
|
Proceeds from interest rate swap
termination
|
|
-
|
|
30.0
|
|
Proceeds from stock options
exercised, including the tax benefit
|
|
23.7
|
|
2.6
|
|
Dividends paid to BorgWarner
stockholders
|
|
-
|
|
(13.8)
|
|
Dividends paid to noncontrolling
stockholders
|
|
(7.8)
|
|
(8.3)
|
|
Net cash provided by (used in)
financing activities
|
|
(82.3)
|
|
57.0
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash
|
|
(32.7)
|
|
4.8
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash
|
|
(169.9)
|
|
153.5
|
|
|
|
|
|
|
|
Cash at beginning of
year
|
|
357.4
|
|
103.4
|
|
Cash at end of period
|
|
$ 187.5
|
|
$ 256.9
|
|
|
|
|
|
|
SOURCE BorgWarner Inc.