AUBURN HILLS, Mich.,
Oct. 31, 2019 /PRNewswire/ --
BorgWarner Inc. (NYSE: BWA) today reported third quarter
results.
Third Quarter Highlights:
- U.S. GAAP net sales of $2,492
million, up 0.6% compared with third quarter 2018.
-
- Excluding the impact of foreign currencies and the net impact
of acquisitions and divestitures, net sales were up 4.5% compared
with third quarter 2018.
- U.S. GAAP net earnings of $0.94
per diluted share.
-
- Excluding $0.02 per diluted share
related to non-comparable items (detailed in the table below), adj.
net earnings were $0.96 per diluted
share.
- U.S. GAAP operating income of $276
million, or 11.1% of net sales.
-
- Excluding $18 million of pretax
expenses related to non-comparable items, adj. operating income was
$294 million. Excluding the impact of
non-comparable items, adj. operating income was 11.8% of net
sales.
Financial Results:
The company believes the following table is useful in
highlighting non-comparable items that impacted its U.S. GAAP net
earnings per diluted share. The Company defines adjusted earnings
per diluted share as earnings per diluted share adjusted to
eliminate the impact of restructuring expense, merger, acquisition
and divestiture expense, other net expenses, discontinued
operations, other gains and losses not reflective of the Company's
ongoing operations, and related tax effects.
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Earnings per
diluted share
|
$
|
0.94
|
|
|
$
|
0.98
|
|
|
$
|
2.54
|
|
|
$
|
3.34
|
|
|
|
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
|
|
|
|
Restructuring
expense
|
0.04
|
|
|
0.03
|
|
|
0.15
|
|
|
0.17
|
|
Merger, acquisition
and divestiture expense
|
0.02
|
|
|
—
|
|
|
0.04
|
|
|
0.02
|
|
Officer stock awards
modification
|
—
|
|
|
0.03
|
|
|
0.01
|
|
|
0.01
|
|
Loss on
arbitration
|
—
|
|
|
—
|
|
|
0.07
|
|
|
—
|
|
Gain on commercial
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.01)
|
|
Pension settlement
loss
|
—
|
|
|
—
|
|
|
0.10
|
|
|
—
|
|
Tax
adjustments
|
(0.04)
|
|
|
(0.04)
|
|
|
0.04
|
|
|
(0.25)
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per diluted share
|
$
|
0.96
|
|
|
$
|
1.00
|
|
|
$
|
2.95
|
|
|
$
|
3.28
|
|
Net sales were $2,492 million in
the third quarter 2019, up 0.6% from $2,478
million in the third quarter 2018. Net income in the
third quarter 2019 was $194 million,
or $0.94 per diluted share, compared
with $204 million, or $0.98 per diluted share, in the third quarter
2018. Adj. net earnings per share in the third quarter 2019
were $0.96 down from $1.00 in the third quarter 2018. Adj. net
earnings in the third quarter 2019 excluded non-comparable items of
$0.02 per diluted share. Adj.
net earnings in the third quarter 2018 excluded net non-comparable
items of $0.02 per diluted
share. These items are listed in the table above, which is
provided by the company for comparison with other results and the
most directly comparable U.S. GAAP measures. The depreciation
of certain foreign currencies against the U.S. dollar decreased net
sales by approximately $66 million
and decreased net earnings by approximately $0.02 per diluted share in the third quarter 2019
compared with the third quarter 2018. The impact of the
divestiture of the thermostat product line decreased net sales by
$29 million in the third quarter 2019
compared with the third quarter 2018. The decline in net
earnings and adj. net earnings is primarily due to the
year-over-year decrease in equity in affiliates' earnings and an
increase in the company's tax rate.
For the first nine months of 2019, net sales were $7,609 million, down 4.4% from $7,956 million in the first nine months of
2018. Net income in the first nine months of 2019 was
$526 million, or $2.54 per diluted share, compared with
$701 million, or $3.34 per diluted share, in the first nine months
of 2018. Adj. net earnings per share in the first nine months
of 2019 were $2.95, down from
$3.28 in the first nine months of
2018. Adj. net earnings in the first nine months of 2019
excluded net non-comparable items of $0.41 per diluted share. Adj. net earnings
in the first nine months of 2018 excluded net non-comparable items
of $(0.06) per diluted share. These
items are listed in the table above, which is provided by the
company for comparison with other results and the most directly
comparable U.S. GAAP measures. The depreciation of certain foreign
currencies against the U.S. dollar decreased net sales by
approximately $299 million and
decreased net earnings by approximately $0.12 per diluted share in the first nine months
of 2019 compared with the first nine months of 2018. The impact of
the divestiture of the thermostat product line decreased net sales
by $59 million in the first nine
months of 2019 compared with the first nine months of 2018.
The decline in net earnings and adj. net earnings is primarily due
to the impact of lower revenue, the increased cost from tariffs,
supplier cost reductions not keeping pace with normal customer
price deflation and a year-over-year increase in the company's tax
rate.
Net cash provided by operating activities was $824 million in the first nine months of 2019
compared with $556 million in the
first nine months of 2018. Investments in capital
expenditures, including tooling outlays, totaled $346 million in the first nine months of 2019,
compared with $394 million in the
first nine months of 2018. Balance sheet debt decreased
$39 million, and cash and restricted
cash increased by $177 million at the
end of third quarter 2019 compared with the end of 2018.
Engine Segment Results: Engine segment net sales
were $1,514 million in the third
quarter 2019 compared with $1,516
million in third quarter 2018. Excluding the impact of
foreign currencies and the divestiture of the thermostat product
line, net sales were up 4.6% from the prior year. Adj.
earnings before interest, income taxes and non-controlling interest
("Adj. EBIT") were $241 million in
the third quarter of 2019. Excluding the impact of foreign
currencies and the divestiture of the thermostat product line, Adj.
EBIT was $245 million, up 3.4% from
the third quarter of 2018. The increase in Adj. EBIT was
primarily due to impact of higher revenue excluding the impact of
weaker currencies and the net impact of acquisitions and
divestitures.
Drivetrain Segment Results: Drivetrain segment net
sales were $993 million in the third
quarter 2019 compared with $976
million in the third quarter 2018. Excluding the
impact of foreign currencies, net sales were up 4.2% from the prior
year. Adj. EBIT was $100
million in tje third quarter 2019. Excluding the
impact of foreign currencies, Adj. EBIT was $103 million, down 4.6% from the third quarter
2018. The decline in Adj. EBIT was primarily due to higher
research and development spending and startup costs for
launches.
Full Year 2019 Guidance: The company has updated its 2019
full year guidance. Net sales are expected to be in the range
of $9.95 billion to $10.1 billion. This implies year-over-year
organic sales change of down 1.0% to flat. The company expects its
blended light-vehicle market to decline in the range of 4.0% to
4.5% in 2019. Global light vehicle production expectations
remain volatile, particularly in China. Foreign currencies
are expected to result in a year-over-year decrease in sales of
$375 million, primarily due to the
depreciation of the Euro, Chinese Renminbi and Korean Won against
the U.S. dollar. The divestiture of the thermostat product line
will decrease year-over-year sales by approximately $90 million. Excluding the impact of
non-comparable items, adj. operating margin is expected to be in
the range of 11.7% to 12.0%. Excluding the impact of
non-comparable items, adj. net earnings are expected to be within a
range of $3.85 to $4.00 per diluted share. Full-year free
cash flow is expected to be in the range of $550 million to $600
million.
At 9:30 a.m. ET today, a brief
conference call concerning third quarter 2019 results and guidance
will be webcast at:
http://www.borgwarner.com/en/Investors/default.aspx.
BorgWarner Inc. (NYSE: BWA) is a global product leader in clean
and efficient technology solutions for combustion, hybrid and
electric vehicles. With manufacturing and technical
facilities in 67 locations in 19 countries, the company employs
approximately 30,000 worldwide. For more information, please visit
borgwarner.com.
Statements in this press release may constitute forward-looking
statements as contemplated by the 1995 Private Securities
Litigation Reform Act that are based on management's current
outlook, expectations, estimates and projections. Words such as
"anticipates," "believes," "continues," "could," "designed,"
"effect," "estimates," "evaluates," "expects," "forecasts," "goal,"
"guidance," "initiative," "intends," "may," "outlook," "plans,"
"potential," "predicts," "project," "pursue," "seek," "should,"
"target," "when," "will," "would," and variations of such words and
similar expressions are intended to identify such forward-looking
statements. Forward-looking statements are not guarantees of
performance, and the Company's actual results may differ materially
from those expressed, projected or implied in or by the
forward-looking statements. These risks and uncertainties, among
others, include: our dependence on automotive and truck production,
both of which are highly cyclical; our reliance on major OEM
customers; commodities availability and pricing; supply
disruptions; fluctuations in interest rates and foreign currency
exchange rates; availability of credit; our dependence on key
management; our dependence on information systems; the uncertainty
of the global economic environment; the outcome of existing or any
future legal proceedings, including litigation with respect to
various claims; future changes in laws and regulations, including,
by way of example, tariffs, in the countries in which we operate;
and other risks noted in reports that we file with the Securities
and Exchange Commission, including the Risk Factors in our most
recently filed Annual Report on Form 10-K. We do not undertake any
obligation to update or announce publicly any updates to or
revision to any of the forward-looking statements in this press
release to reflect any change in our expectations or any change in
events, conditions, circumstances, or assumptions underlying the
statements.
BorgWarner
Inc.
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
(millions, except per
share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
2,492
|
|
|
$
|
2,478
|
|
|
$
|
7,609
|
|
|
$
|
7,956
|
|
Cost of
sales
|
1,968
|
|
|
1,963
|
|
|
6,053
|
|
|
6,270
|
|
Gross
profit
|
524
|
|
|
515
|
|
|
1,556
|
|
|
1,686
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
230
|
|
|
230
|
|
|
668
|
|
|
720
|
|
Other expense,
net
|
18
|
|
|
7
|
|
|
63
|
|
|
42
|
|
Operating
income
|
276
|
|
|
278
|
|
|
825
|
|
|
924
|
|
|
|
|
|
|
|
|
|
Equity in affiliates'
earnings, net of tax
|
(7)
|
|
|
(15)
|
|
|
(25)
|
|
|
(38)
|
|
Interest
income
|
(4)
|
|
|
(1)
|
|
|
(9)
|
|
|
(4)
|
|
Interest
expense
|
15
|
|
|
14
|
|
|
43
|
|
|
45
|
|
Other postretirement
(income) expense
|
(1)
|
|
|
(3)
|
|
|
26
|
|
|
(8)
|
|
Earnings before
income taxes and noncontrolling interest
|
273
|
|
|
283
|
|
|
790
|
|
|
929
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
66
|
|
|
67
|
|
|
230
|
|
|
192
|
|
Net
earnings
|
207
|
|
|
216
|
|
|
560
|
|
|
737
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to the noncontrolling interest, net of tax
|
13
|
|
|
12
|
|
|
34
|
|
|
36
|
|
Net earnings
attributable to BorgWarner Inc.
|
$
|
194
|
|
|
$
|
204
|
|
|
$
|
526
|
|
|
$
|
701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share —
diluted
|
$
|
0.94
|
|
|
$
|
0.98
|
|
|
$
|
2.54
|
|
|
$
|
3.34
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding — diluted
|
206.3
|
|
|
208.7
|
|
|
206.8
|
|
|
209.8
|
|
|
|
|
|
|
|
|
|
Supplemental
Information (Unaudited)
|
|
|
|
|
|
|
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Capital expenditures,
including tooling outlays
|
$
|
102
|
|
|
$
|
125
|
|
|
$
|
346
|
|
|
$
|
394
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
$
|
110
|
|
|
$
|
108
|
|
|
$
|
324
|
|
|
$
|
326
|
|
BorgWarner
Inc.
|
|
|
|
|
|
|
|
Net Sales by
Reporting Segment (Unaudited)
|
|
|
|
|
|
|
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Engine
|
$
|
1,514
|
|
|
$
|
1,516
|
|
|
$
|
4,681
|
|
|
$
|
4,906
|
|
Drivetrain
|
993
|
|
|
$
|
976
|
|
|
2,973
|
|
|
3,093
|
|
Inter-segment
eliminations
|
(15)
|
|
|
(14)
|
|
|
(45)
|
|
|
(43)
|
|
Net sales
|
$
|
2,492
|
|
|
$
|
2,478
|
|
|
$
|
7,609
|
|
|
$
|
7,956
|
|
BorgWarner
Inc.
|
|
|
|
|
|
|
|
Adjusted Earnings
Before Interest, Income Taxes and Noncontrolling Interest ("Adj.
EBIT") (Unaudited)
|
|
|
|
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Engine
|
$
|
241
|
|
|
$
|
238
|
|
|
$
|
731
|
|
|
$
|
797
|
|
Drivetrain
|
100
|
|
|
108
|
|
|
307
|
|
|
345
|
|
Adj. EBIT
|
341
|
|
|
346
|
|
|
1,038
|
|
|
1,142
|
|
Restructuring
expense
|
14
|
|
|
5
|
|
|
41
|
|
|
44
|
|
Merger, acquisition
and divestiture expense
|
4
|
|
|
2
|
|
|
10
|
|
|
5
|
|
Other expense
(income)
|
—
|
|
|
2
|
|
|
14
|
|
|
(3)
|
|
Officer stock awards
modification
|
—
|
|
|
6
|
|
|
2
|
|
|
2
|
|
Corporate, including
stock-based compensation
|
47
|
|
|
53
|
|
|
146
|
|
|
170
|
|
Equity in affiliates'
earnings, net of tax
|
(7)
|
|
|
(15)
|
|
|
(25)
|
|
|
(38)
|
|
Interest
income
|
(4)
|
|
|
(1)
|
|
|
(9)
|
|
|
(4)
|
|
Interest
expense
|
15
|
|
|
14
|
|
|
43
|
|
|
45
|
|
Other postretirement
(income) expense
|
(1)
|
|
|
(3)
|
|
|
26
|
|
|
(8)
|
|
Earnings before
income taxes and noncontrolling interest
|
273
|
|
|
283
|
|
|
790
|
|
|
929
|
|
Provision for income
taxes
|
66
|
|
|
67
|
|
|
230
|
|
|
192
|
|
Net
earnings
|
207
|
|
|
216
|
|
|
560
|
|
|
737
|
|
Net earnings
attributable to the noncontrolling interest, net of tax
|
13
|
|
|
12
|
|
|
34
|
|
|
36
|
|
Net earnings
attributable to BorgWarner Inc.
|
$
|
194
|
|
|
$
|
204
|
|
|
$
|
526
|
|
|
$
|
701
|
|
BorgWarner
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
September 30,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
Cash
|
$
|
916
|
|
|
$
|
739
|
|
Receivables,
net
|
1,983
|
|
|
1,988
|
|
Inventories,
net
|
810
|
|
|
781
|
|
Prepayments and other
current assets
|
278
|
|
|
250
|
|
Assets held for
sale
|
—
|
|
|
47
|
|
Total current
assets
|
3,987
|
|
|
3,805
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,812
|
|
|
2,904
|
|
Other non-current
assets
|
3,400
|
|
|
3,386
|
|
Total
assets
|
$
|
10,199
|
|
|
$
|
10,095
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Notes payable and
other short-term debt
|
$
|
419
|
|
|
$
|
173
|
|
Accounts payable and
accrued expenses
|
2,048
|
|
|
2,144
|
|
Income taxes
payable
|
58
|
|
|
59
|
|
Liabilities held for
sale
|
—
|
|
|
23
|
|
Total current
liabilities
|
2,525
|
|
|
2,399
|
|
|
|
|
|
Long-term
debt
|
1,656
|
|
|
1,941
|
|
Other non-current
liabilities
|
1,440
|
|
|
1,410
|
|
|
|
|
|
Total BorgWarner Inc.
stockholders' equity
|
4,457
|
|
|
4,226
|
|
Noncontrolling
interest
|
121
|
|
|
119
|
|
Total
equity
|
4,578
|
|
|
4,345
|
|
Total liabilities and
equity
|
$
|
10,199
|
|
|
$
|
10,095
|
|
BorgWarner
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
Operating
|
|
|
|
Net
earnings
|
$
|
560
|
|
|
$
|
737
|
|
Depreciation and
amortization
|
324
|
|
|
326
|
|
Stock-based
compensation expense
|
30
|
|
|
38
|
|
Restructuring
expense, net of cash paid
|
14
|
|
|
35
|
|
Pension settlement
loss
|
26
|
|
|
—
|
|
Deferred income tax
provision (benefit)
|
28
|
|
|
(37)
|
|
Tax reform
adjustments to provision for income taxes
|
16
|
|
|
—
|
|
Equity in affiliates'
earnings, net of dividends received, and other
|
9
|
|
|
(22)
|
|
Net earnings adjusted
for non-cash charges to operations
|
1,007
|
|
|
1,077
|
|
Changes in assets and
liabilities
|
(183)
|
|
|
(521)
|
|
Net cash provided by
operating activities
|
824
|
|
|
556
|
|
|
|
|
|
Investing
|
|
|
|
Capital expenditures,
including tooling outlays
|
(346)
|
|
|
(394)
|
|
Payments for business
acquired
|
(10)
|
|
|
—
|
|
Proceeds from sale of
business, net of cash divested
|
24
|
|
|
—
|
|
Payments for
investments in equity securities
|
(52)
|
|
|
(4)
|
|
Proceeds from asset
disposals and other
|
4
|
|
|
5
|
|
Net cash used in
investing activities
|
(380)
|
|
|
(393)
|
|
|
|
|
|
Financing
|
|
|
|
Net decrease in notes
payable
|
—
|
|
|
(30)
|
|
Additions to
long-term debt, net of debt issuance costs
|
45
|
|
|
20
|
|
Repayments of
long-term debt, including current portion
|
(54)
|
|
|
(15)
|
|
Payments for purchase
of treasury stock
|
(100)
|
|
|
(150)
|
|
Payments for
stock-based compensation items
|
(15)
|
|
|
(15)
|
|
Contributions from
noncontrolling interest stockholders
|
4
|
|
|
—
|
|
Dividends paid to
BorgWarner stockholders
|
(105)
|
|
|
(106)
|
|
Dividends paid to
noncontrolling stockholders
|
(23)
|
|
|
(27)
|
|
Net cash used in
financing activities
|
(248)
|
|
|
(323)
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(19)
|
|
|
(23)
|
|
Net increase
(decrease) in cash
|
177
|
|
|
(183)
|
|
|
|
|
|
Cash and restricted
cash at beginning of year
|
739
|
|
|
545
|
|
Cash and restricted
cash at end of period
|
$
|
916
|
|
|
$
|
362
|
|
Non-GAAP Financial Measures
This press release contains information about BorgWarner's
financial results which is not presented in accordance with
accounting principles generally accepted in the United States ("GAAP").
Such non-GAAP financial measures are reconciled to their
closest GAAP financial measures below and in the Financial Results
table above. The provision of these comparable GAAP financial
measures for 2019 is not intended to indicate that BorgWarner is
explicitly or implicitly providing projections on those GAAP
financial measures, and actual results for such measures are likely
to vary from those presented. The reconciliations include all
information reasonably available to the company at the date of this
press release and the adjustments that management can reasonably
predict.
Management believes that these non-GAAP financial measures are
useful to management, investors, and banking institutions in their
analysis of the Company's business and operating performance.
Management also uses this information for operational planning and
decision-making purposes.
Non-GAAP financial measures are not and should not be considered
a substitute for any GAAP measure. Additionally, because not all
companies use identical calculations, the non-GAAP financial
measures as presented by BorgWarner may not be comparable to
similarly titled measures reported by other companies.
Adjusted Operating Income and Adjusted Earnings Per
Share
The Company defines adjusted operating income as operating
income adjusted to eliminate the impact of restructuring expense,
merger, acquisition and divestiture expense, other net expenses,
discontinued operations, and other gains and losses not reflective
of the Company's ongoing operations. The Company defines adjusted
earnings per diluted share as earnings per diluted share adjusted
for the items above and related tax effects.
Adjusted Operating
Income
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net sales
|
$
|
2,492
|
|
|
$
|
2,478
|
|
|
$
|
7,609
|
|
|
$
|
7,956
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
524
|
|
|
515
|
|
|
1,556
|
|
|
1,686
|
|
Gross
margin
|
21.0
|
%
|
|
20.8
|
%
|
|
20.4
|
%
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
276
|
|
|
$
|
278
|
|
|
$
|
825
|
|
|
$
|
924
|
|
Operating
margin
|
11.1
|
%
|
|
11.2
|
%
|
|
10.8
|
%
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
|
|
|
|
Restructuring and
other expense
|
$
|
14
|
|
|
$
|
7
|
|
|
$
|
41
|
|
|
$
|
44
|
|
Merger, acquisition
and divestiture expense
|
4
|
|
|
2
|
|
|
10
|
|
|
5
|
|
Officer stock awards
modification
|
—
|
|
|
6
|
|
|
2
|
|
|
2
|
|
Loss on
arbitration
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
Gain on commercial
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
Adjusted operating
income
|
$
|
294
|
|
|
$
|
293
|
|
|
$
|
892
|
|
|
$
|
972
|
|
Adjusted operating
margin
|
11.8
|
%
|
|
11.8
|
%
|
|
11.7
|
%
|
|
12.2
|
%
|
Adjusted Operating
Income Guidance Reconciliation
|
|
|
|
|
Full-Year 2019
Guidance
|
|
Low
|
|
High
|
Net Sales
|
$
|
9,950
|
|
|
$
|
10,100
|
|
|
|
|
|
Operating
Income
|
1,089
|
|
|
1,144
|
|
Operating
Margin
|
10.9
|
%
|
|
11.3
|
%
|
|
|
|
|
Non-comparable
items:
|
|
|
|
Restructuring and
other expense
|
$
|
50
|
|
|
$
|
40
|
|
Merger, acquisition
and divestiture expense
|
10
|
|
|
10
|
|
Officer stock awards
modification
|
2
|
|
|
2
|
|
Loss on
arbitration
|
14
|
|
|
14
|
|
Adjusted Operating
Income
|
$
|
1,165
|
|
|
$
|
1,210
|
|
Adjusted Operating
Margin
|
11.7
|
%
|
|
12.0
|
%
|
Adjusted Earnings
Per Diluted Share Guidance Reconciliation
|
|
|
|
|
Full-Year 2019
Guidance
|
|
Low
|
|
High
|
Earnings per
Diluted Share
|
$
|
3.40
|
|
|
$
|
3.59
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
Restructuring
expense
|
0.18
|
|
|
0.14
|
|
Merger, acquisition
and divestiture expense
|
0.05
|
|
|
0.05
|
|
Officer stock awards
modification
|
0.01
|
|
|
0.01
|
|
Loss on
arbitration
|
0.07
|
|
|
0.07
|
|
Pension settlement
loss
|
0.10
|
|
|
0.10
|
|
Tax
adjustments
|
0.04
|
|
|
0.04
|
|
|
|
|
|
Adjusted Earnings
per Diluted Share
|
$
|
3.85
|
|
|
$
|
4.00
|
|
Free Cash Flow
The Company defines free cash flow as net cash provided by
operating activities minus capital expenditures and it is useful to
both management and investors in evaluating the Company's ability
to service and repay its debt.
Free Cash Flow
Outlook Reconciliation
|
|
Full-Year 2019
Guidance
|
|
Low
|
|
High
|
Cash provided by
operating activities
|
$
|
1,150
|
|
|
$
|
1,150
|
|
Capital
expenditures
|
(600)
|
|
|
(550)
|
|
Free cash
flow
|
$
|
550
|
|
|
$
|
600
|
|
Key Definitions
The terms below are commonly used by management and investors in
assessing ongoing financial performance.
Organic Revenue Change: Revenue change year over year excluding
the estimated impact of FX and net M&A.
Market: The estimated change in light vehicle production
weighted for BorgWarner's geographic exposure.
Outgrowth: BorgWarner's "Organic Revenue Change" vs.
"Market".
View original
content:http://www.prnewswire.com/news-releases/borgwarner-reports-third-quarter-2019-us-gaap-net-earnings-of-0-94-per-diluted-share-or-0-96-per-diluted-share-excluding-non-comparable-items-300948718.html
SOURCE BorgWarner