AUBURN HILLS, Mich.,
May 5, 2021 /PRNewswire/
-- BorgWarner Inc. (NYSE: BWA) today reported first quarter
results.
First Quarter Highlights:
- U.S. GAAP net sales of $4,009
million, up 76% compared with first quarter 2020.
-
- Excluding the impact of foreign currencies and the net impact
of acquisitions and divestitures, organic sales were up 18%
compared with first quarter 2020.
- U.S. GAAP net earnings of $0.27
per diluted share.
-
- Excluding the $(0.94) per diluted
share related to non-comparable items (detailed in the table
below), adjusted net earnings were $1.21 per diluted share.
- U.S. GAAP operating income of $403
million, or 10.1% of net sales.
-
- Excluding the $41 million of
pretax expenses related to non-comparable items, adjusted operating
income was $444 million.
Excluding the impact of non-comparable items, adjusted operating
income was 11.1% of net sales.
- Net cash provided by operating activities of $342 million.
-
- Free cash flow was $147
million.
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
March 31,
|
|
2021
|
|
2020
|
Earnings per
diluted share
|
$
|
0.27
|
|
|
$
|
0.63
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
Restructuring
expense
|
0.12
|
|
|
0.06
|
|
Merger, acquisition
and divestiture expense
|
0.04
|
|
|
0.10
|
|
Unrealized loss on
equity securities
|
0.87
|
|
|
0.04
|
|
Tax
adjustments
|
(0.09)
|
|
|
(0.06)
|
|
|
|
|
|
Adjusted earnings
per diluted share
|
$
|
1.21
|
|
|
$
|
0.77
|
|
Net sales were $4,009 million for
the first quarter 2021, up 76% from $2,279
million for the first quarter 2020, due to the acquisition
of Delphi Technologies, increased demand for the Company's products
and the recovery of global markets from the negative effects of
COVID-19 on 2020 production. Net earnings for the first quarter
2021 were $65 million, or
$0.27 per diluted share, compared
with net earnings of $129 million, or
$0.63 per diluted share, for the
first quarter 2020. Adjusted net earnings per diluted share
for the first quarter 2021 were $1.21, up from adjusted net earnings per diluted
share of $0.77 for the first quarter
2020. Adjusted net earnings for the first quarter 2021 excluded net
non-comparable items of $(0.94) per
diluted share. Adjusted net earnings for the first quarter 2020
excluded net non-comparable items of $(0.14) 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 increase in adjusted net earnings was primarily due
to the impact of higher sales and earnings from the acquisition of
Delphi Technologies. The impact of foreign currencies increased net
sales by approximately $194 million
and increased adjusted operating income by approximately
$25 million for first quarter 2021,
compared with the first quarter 2020.
Net cash provided by operating activities was $342 million for the first three months of 2021,
compared with $263 million for the
first three months of 2020. Investments in capital expenditures,
including tooling outlays, totaled $195
million for the first three months of 2021, compared with
$117 million for the first three
months of 2020. Compared with the end of 2020, balance sheet debt
at the end of the first quarter 2021 decreased $28 million, while cash and cash equivalents
increased by $105 million.
Air Management Segment Results: The Air Management
segment net sales were $2,011 million
during the first quarter 2021, compared with $1,434 million during the first quarter 2020.
Excluding the impact of foreign currencies but including the
estimated growth in Delphi Technologies-related revenue over pro
forma 2020 Delphi Technologies revenue, organic sales were up 14%
from the prior year. Adjusted earnings before interest, income
taxes and non-controlling interest ("Adj. EBIT") were $322 million, or 16.0% of sales, during the first
quarter 2021, compared to $208
million, or 14.5% of sales, in the prior year. The increase
in Adj. EBIT was primarily due to the impact of higher sales and
the acquisition of Delphi Technologies.
e-Propulsion & Drivetrain Segment
Results: e-Propulsion & Drivetrain segment net sales
were $1,466 million during the first
quarter 2021, compared with $860
million during the first quarter 2020. Excluding the impact
of foreign currencies but including the estimated growth in Delphi
Technologies-related revenue over pro forma 2020 Delphi
Technologies revenue, organic sales were up 36% from the prior
year. Adj. EBIT was $137 million, or
9.3% of sales, during the first quarter 2021, compared to
$63 million, or 7.3% of sales, in the
prior year. The increase in Adj. EBIT was primarily due to the
impact of higher sales and the acquisition of Delphi
Technologies.
Fuel Injection Segment Results: The Fuel Injection
segment's net sales and Adj. EBIT in the first quarter 2021 were
$475 million and $33 million, respectively. Excluding the impact
of foreign currencies but including the estimated growth in Delphi
Technologies-related revenue over pro forma 2020 Delphi
Technologies revenue, organic sales were up 9%. The Adj. EBIT
margin was 6.9% in the first quarter 2021. This is a new segment
following the Delphi Technologies acquisition.
Aftermarket Segment Results: The Aftermarket
segment's net sales and Adj. EBIT in the first quarter 2021 were
$197 million and $21 million, respectively. Excluding the impact
of foreign currencies but including the estimated growth in Delphi
Technologies-related revenue over pro forma 2020 Delphi
Technologies revenue, organic sales were up 11%. The Adj. EBIT
margin was 10.7% in the first quarter 2021. This is a new segment
following the Delphi Technologies acquisition.
Full Year 2021 Guidance: For the full-year 2021, net
sales are expected to be in the range of $14.8 billion to $15.4 billion, under the assumption that
there are no additional production disruptions arising from
COVID-19. This implies a year-over-year increase in organic sales
of 12% to 17%. The Company expects its weighted light and
commercial vehicle markets to increase in the range of
approximately 9% to 12% in 2021. Foreign currencies are expected to
result in a year-over-year increase in sales of approximately
$400 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 8.7% to 9.4%.
Excluding the impact of non-comparable items, adjusted operating
margin is expected to be in the range of 10.1% to 10.5%. Net
earnings are expected to be within a range of $3.42 to $3.92 per
diluted share. Excluding the impact of non-comparable items,
adjusted net earnings are expected to be within a range of
$4.00 to $4.35 per diluted share. Full-year operating cash
flow is expected to be in the range of $1,525 million to $1,675
million, while free cash flow is expected to be in the range
of $800 million to $900 million.
At 9:00 a.m. ET today, a brief
conference call concerning first quarter 2021 results and guidance
will be webcast at:
http://www.borgwarner.com/en/Investors/default.aspx. Additionally,
an earnings call presentation will be available 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. Building on its original equipment expertise,
BorgWarner also brings market leading product and service solutions
to the global aftermarket. With manufacturing and technical
facilities in 96 locations in 24 countries, the Company employs
approximately 50,000 worldwide. For more information, please visit
borgwarner.com.
Forward-Looking Statements: Statements in this press
release may constitute forward-looking statements as contemplated
by the 1995 Private Securities Litigation Reform Act (the "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," "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. Further, all
statements, other than statements of historical fact contained or
incorporated by reference in this press release, that we expect or
anticipate will or may occur in the future regarding our financial
position, business strategy and measures to implement that
strategy, including changes to operations, competitive strengths,
goals, expansion and growth of our business and operations, plans,
references to future success and other such matters, are
forward-looking statements. Accounting estimates, such as those
described under the heading "Critical Accounting Policies and
Estimates" in Item 7 of our Annual Report on Form 10-K for the year
ended December 31, 2020 ("Form
10-K"), are inherently forward-looking. All forward-looking
statements are based on assumptions and analyses made by us in
light of our experience and our perception of historical trends,
current conditions and expected future developments, as well as
other factors we believe are appropriate under the circumstances.
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.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
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. These risks and uncertainties, among others, include:
uncertainties regarding the extent and duration of impacts of
matters associated with the COVID-19/coronavirus pandemic
("COVID-19"), including additional production disruptions; the
failure to realize the expected benefits of the acquisition of
Delphi Technologies PLC that the Company completed on October 1, 2020; the failure to promptly and
effectively integrate acquired businesses; the potential for
unknown or inestimable liabilities relating to the acquired
businesses; the possibility that the proposed transaction between
the Company and AKASOL AG ("Proposed Transaction") will not be
consummated; failure to satisfy any of the conditions to the
proposed transaction; failure to realize the expected benefits of
the Proposed Transaction; our dependence on automotive and truck
production, both of which are highly cyclical and subject to
disruptions; our reliance on major original equipment manufacturers
("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 the other risks, including, by way of example, pandemics and
quarantines, noted in reports that we file with the Securities and
Exchange Commission, including Item 1A, "Risk Factors" in our most
recently-filed Form 10-K as updated by Item 1A of this report. We
do not undertake any obligation to update or announce publicly any
updates to or revisions 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)
|
(in millions, except
per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Net sales
|
$
|
4,009
|
|
|
$
|
2,279
|
|
Cost of
sales
|
3,191
|
|
|
1,832
|
|
Gross
profit
|
818
|
|
|
447
|
|
Gross
margin
|
20.4%
|
|
|
19.6%
|
|
|
|
|
|
Selling, general and
administrative expenses
|
377
|
|
|
213
|
|
Other operating
expense, net
|
38
|
|
|
36
|
|
Operating
income
|
403
|
|
|
198
|
|
|
|
|
|
Equity in affiliates'
earnings, net of tax
|
(12)
|
|
|
(5)
|
|
Unrealized loss on
equity securities
|
272
|
|
|
9
|
|
Interest
income
|
(3)
|
|
|
(2)
|
|
Interest
expense
|
21
|
|
|
12
|
|
Other postretirement
income
|
(11)
|
|
|
(2)
|
|
Earnings before income
taxes and noncontrolling interest
|
136
|
|
|
186
|
|
|
|
|
|
Provision for income
taxes
|
42
|
|
|
49
|
|
Net
earnings
|
94
|
|
|
137
|
|
|
|
|
|
Net earnings
attributable to noncontrolling interest, net of tax
|
29
|
|
|
8
|
|
Net earnings
attributable to BorgWarner Inc.
|
$
|
65
|
|
|
$
|
129
|
|
|
|
|
|
Earnings per share —
diluted
|
$
|
0.27
|
|
|
$
|
0.63
|
|
|
|
|
|
Weighted average
shares outstanding — diluted
|
238.4
|
|
|
206.2
|
|
BorgWarner
Inc.
|
|
|
|
Net Sales by
Reporting Segment (Unaudited)
|
|
|
(in
millions)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Air
Management
|
$
|
2,011
|
|
|
$
|
1,434
|
|
e-Propulsion &
Drivetrain
|
1,466
|
|
|
860
|
|
Fuel
Injection
|
475
|
|
|
—
|
|
Aftermarket
|
197
|
|
|
—
|
|
Inter-segment
eliminations
|
(140)
|
|
|
(15)
|
|
Net sales
|
$
|
4,009
|
|
|
$
|
2,279
|
|
|
|
|
|
Adjusted Earnings
Before Interest, Income Taxes and Noncontrolling Interest ("Adj.
EBIT") (Unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Air
Management
|
$
|
322
|
|
|
$
|
208
|
|
e-Propulsion &
Drivetrain
|
137
|
|
|
63
|
|
Fuel
Injection
|
33
|
|
|
—
|
|
Aftermarket
|
21
|
|
|
—
|
|
Segment Adjusted
EBIT
|
513
|
|
|
271
|
|
Corporate, including
stock-based compensation
|
69
|
|
|
37
|
|
Restructuring
expense
|
30
|
|
|
15
|
|
Merger, acquisition
and divestiture expense
|
13
|
|
|
21
|
|
Net gain on insurance
recovery for property damage
|
(2)
|
|
|
—
|
|
Equity in affiliates'
earnings, net of tax
|
(12)
|
|
|
(5)
|
|
Unrealized loss on
equity securities
|
272
|
|
|
9
|
|
Interest
income
|
(3)
|
|
|
(2)
|
|
Interest
expense
|
21
|
|
|
12
|
|
Other postretirement
income
|
(11)
|
|
|
(2)
|
|
Earnings before income
taxes and noncontrolling interest
|
136
|
|
|
186
|
|
Provision for income
taxes
|
42
|
|
|
49
|
|
Net
earnings
|
94
|
|
|
137
|
|
Net earnings
attributable to noncontrolling interest, net of tax
|
29
|
|
|
8
|
|
Net earnings
attributable to BorgWarner Inc.
|
$
|
65
|
|
|
$
|
129
|
|
BorgWarner
Inc.
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
March 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
1,755
|
|
|
$
|
1,650
|
|
Receivables,
net
|
3,153
|
|
|
2,919
|
|
Inventories,
net
|
1,361
|
|
|
1,286
|
|
Prepayments and other
current assets
|
313
|
|
|
312
|
|
Total current
assets
|
6,582
|
|
|
6,167
|
|
|
|
|
|
Property, plant and
equipment, net
|
4,449
|
|
|
4,591
|
|
Other non-current
assets
|
4,940
|
|
|
5,271
|
|
Total
assets
|
$
|
15,971
|
|
|
$
|
16,029
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Notes payable and
other short-term debt
|
$
|
51
|
|
|
$
|
49
|
|
Accounts
payable
|
2,485
|
|
|
2,352
|
|
Other current
liabilities
|
1,385
|
|
|
1,409
|
|
Total current
liabilities
|
3,921
|
|
|
3,810
|
|
|
|
|
|
Long-term
debt
|
3,708
|
|
|
3,738
|
|
Other non-current
liabilities
|
1,688
|
|
|
1,757
|
|
|
|
|
|
Total BorgWarner Inc.
stockholders' equity
|
6,367
|
|
|
6,428
|
|
Noncontrolling
interest
|
287
|
|
|
296
|
|
Total
equity
|
6,654
|
|
|
6,724
|
|
Total liabilities and
equity
|
$
|
15,971
|
|
|
$
|
16,029
|
|
BorgWarner
Inc.
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(in
millions)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
OPERATING
|
|
|
|
Net cash provided by
operating activities
|
$
|
342
|
|
|
$
|
263
|
|
INVESTING
|
|
|
|
Capital expenditures,
including tooling outlays
|
(195)
|
|
|
(117)
|
|
Capital expenditures
for damage to property, plant and equipment
|
(2)
|
|
|
—
|
|
Proceeds from
settlement of net investment hedges, net
|
11
|
|
|
1
|
|
Proceeds from asset
disposals and other, net
|
1
|
|
|
(4)
|
|
Net cash used in
investing activities
|
(185)
|
|
|
(120)
|
|
|
|
|
|
FINANCING
|
|
|
|
Net increase in notes
payable
|
7
|
|
|
—
|
|
Additions to
debt
|
22
|
|
|
13
|
|
Payments for debt
issuance costs
|
(1)
|
|
|
—
|
|
Repayments of debt,
including current portion
|
(26)
|
|
|
(14)
|
|
Payments for
stock-based compensation items
|
(13)
|
|
|
(12)
|
|
Dividends paid to
BorgWarner stockholders
|
(40)
|
|
|
(35)
|
|
Dividends paid to
noncontrolling stockholders
|
—
|
|
|
(14)
|
|
Net cash used in
financing activities
|
(51)
|
|
|
(62)
|
|
Effect of exchange
rate changes on cash
|
(1)
|
|
|
(12)
|
|
Net increase in cash
and cash equivalents
|
105
|
|
|
69
|
|
Cash and cash
equivalents at beginning of year
|
1,650
|
|
|
832
|
|
Cash and cash
equivalents at end of period
|
$
|
1,755
|
|
|
$
|
901
|
|
|
|
|
|
Supplemental
Information (Unaudited)
|
|
|
|
(in
millions)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Depreciation and
amortization
|
$
|
195
|
|
|
$
|
112
|
|
Non-GAAP Financial Measures
This press release
contains information about BorgWarner's financial results that 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 2021 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 Operating
Margin
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. Adjusted operating
margin is defined as adjusted operating income divided by net
sales.
Adjusted 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.
Free Cash Flow
The Company defines free cash flow as
net cash provided by operating activities minus capital
expenditures, including tooling outlays and it is useful to both
management and investors in evaluating the Company's ability to
service and repay its debt.
Adjusted Operating
Income and Adjusted Operating Margin
|
|
Three Months Ended
March 31,
|
(in
millions)
|
2021
|
|
2020
|
Net sales
|
$
|
4,009
|
|
|
$
|
2,279
|
|
|
|
|
|
Operating
income
|
$
|
403
|
|
|
$
|
198
|
|
Operating
margin
|
10.1%
|
|
|
8.7%
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
Restructuring
expense
|
$
|
30
|
|
|
$
|
15
|
|
Merger, acquisition
and divestiture expense
|
13
|
|
|
21
|
|
Net gain on insurance
recovery for property damage
|
(2)
|
|
|
—
|
|
Adjusted operating
income
|
$
|
444
|
|
|
$
|
234
|
|
Adjusted operating
margin
|
11.1%
|
|
|
10.3%
|
|
Free Cash Flow
Reconciliation
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(in
millions)
|
|
2021
|
|
2020
|
Net cash provided by
operating activities
|
|
$
|
342
|
|
|
$
|
263
|
|
Capital expenditures,
including tooling outlays
|
|
$
|
(195)
|
|
|
$
|
(117)
|
|
Free cash
flow
|
|
$
|
147
|
|
|
$
|
146
|
|
First Quarter 2021
Organic Net Sales Change (Unaudited)
|
|
|
(in
millions)
|
Q1 2020
Net Sales
|
|
FX
|
|
Q1 2020 Delphi
Technologies
Impact
|
|
Market Impact,
Pricing & Other
|
|
Q1 2021
Net Sales
|
|
Organic
Net Sales
Change
|
Air
Management
|
$
|
1,434
|
|
$
|
98
|
|
$
|
249
|
|
$
|
230
|
|
$
|
2,011
|
|
13.7%
|
e-Propulsion &
Drivetrain
|
860
|
|
63
|
|
172
|
|
371
|
|
1,466
|
|
35.9%
|
Fuel
Injection
|
—
|
|
29
|
|
411
|
|
35
|
|
475
|
|
8.5%
|
Aftermarket
|
—
|
|
4
|
|
174
|
|
19
|
|
197
|
|
10.9%
|
Inter-segment
eliminations
|
(15)
|
|
—
|
|
(61)
|
|
(64)
|
|
(140)
|
|
—
|
Total
|
$
|
2,279
|
|
$
|
194
|
|
$
|
945
|
|
$
|
591
|
|
$
|
4,009
|
|
18.3%
|
Adjusted Operating
Income and Adjusted Operating Margin Guidance
Reconciliation
|
|
|
|
|
Full-Year 2021
Guidance
|
(in
millions)
|
Low
|
|
High
|
Net sales
|
$
|
14,800
|
|
|
$
|
15,400
|
|
|
|
|
|
Operating
income
|
1,282
|
|
|
1,452
|
|
Operating
margin
|
8.7%
|
|
|
9.4%
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
Restructuring
expense
|
$
|
200
|
|
|
$
|
150
|
|
Merger, acquisition
and divestiture expense
|
20
|
|
|
20
|
|
Net gain on insurance
recovery for property damage
|
(2)
|
|
|
(2)
|
|
Adjusted operating
income
|
$
|
1,500
|
|
|
$
|
1,620
|
|
Adjusted operating
margin
|
10.1%
|
|
|
10.5%
|
|
Adjusted Earnings
Per Diluted Share Guidance Reconciliation
|
|
|
|
|
Full-Year 2021
Guidance
|
|
Low
|
|
High
|
Earnings per
Diluted Share
|
$
|
3.42
|
|
|
$
|
3.92
|
|
|
|
|
|
Non-comparable
items:
|
|
|
|
Restructuring
expense
|
0.58
|
|
|
0.43
|
|
Merger, acquisition
and divestiture expense
|
0.09
|
|
|
0.09
|
|
Tax
adjustments
|
(0.09)
|
|
|
(0.09)
|
|
|
|
|
|
Adjusted Earnings
per Diluted Share
|
$
|
4.00
|
|
|
$
|
4.35
|
|
Free Cash Flow
Guidance Reconciliation
|
|
|
|
|
|
|
Full Year 2021
Guidance
|
(in
millions)
|
|
Low
|
|
High
|
Net cash provided by
operating activities
|
|
$
|
1,525
|
|
$
|
1,675
|
Capital expenditures,
including tooling outlays
|
|
$
|
(725)
|
|
$
|
(775)
|
Free cash
flow
|
|
$
|
800
|
|
$
|
900
|
Pro Forma Financial Information
On October 1, 2020 BorgWarner completed its
acquisition of Delphi Technologies PLC (Delphi Technologies). The
2020 pro forma unaudited quarterly financial information included
herein includes the pro forma combined results of BorgWarner and
Delphi Technologies for periods prior to October 1, 2020. The pro forma financial
information for the three months ended March
31, 2020 and June 30, 2020 has
been derived from the unaudited consolidated financial statements
included in BorgWarner's and Delphi Technologies' Quarterly Reports
on Form 10-Q for the three and six months ended June 30, 2020. The pro forma financial
information for the three months ended September 30, 2020 has been derived from the
unaudited consolidated financial statements included in
BorgWarner's Quarterly Report on Form 10-Q for the three months
ended September 30, 2020 and from the
books and records of Delphi Technologies for the same period. The
pro forma financial information does not give effect to the
transaction on periods prior to October 1,
2020 and is not necessarily indicative of either the actual
consolidated results had the acquisition of Delphi Technologies
occurred on January 1, 2020 or of
future operating results.
Pro Forma
Quarterly Net Sales and Adjusted Operating Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
Pro forma
Q1 2020
|
|
Pro forma
Q2 2020
|
|
Pro forma
Q3 2020
|
|
As Reported
Q4 2020
|
|
Pro forma
FY 2020
|
Air
Management
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,683
|
|
$
|
961
|
|
$
|
1,750
|
|
$
|
1,942
|
|
$
|
6,336
|
Adjusted
EBIT
|
241
|
|
34
|
|
278
|
|
301
|
|
854
|
Adjusted EBIT
Margin
|
14.3%
|
|
3.5%
|
|
15.9%
|
|
15.5%
|
|
13.5%
|
|
|
|
|
|
|
|
|
|
|
e-Propulsion &
Drivetrain
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,032
|
|
$
|
757
|
|
$
|
1,305
|
|
$
|
1,447
|
|
$
|
4,541
|
Adjusted
EBIT
|
64
|
|
(4)
|
|
148
|
|
164
|
|
372
|
Adjusted EBIT
Margin
|
6.2%
|
|
(0.5)%
|
|
11.3%
|
|
11.3%
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
Fuel
Injection
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
411
|
|
$
|
250
|
|
$
|
410
|
|
$
|
479
|
|
$
|
1,550
|
Adjusted
EBIT
|
20
|
|
(28)
|
|
31
|
|
39
|
|
62
|
Adjusted EBIT
Margin
|
4.9%
|
|
(11.2)%
|
|
7.6%
|
|
8.1%
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
Aftermarket
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
174
|
|
$
|
129
|
|
$
|
195
|
|
$
|
194
|
|
$
|
692
|
Adjusted
EBIT
|
15
|
|
6
|
|
18
|
|
22
|
|
61
|
Adjusted EBIT
Margin
|
8.6%
|
|
4.7%
|
|
9.2%
|
|
11.3%
|
|
8.8%
|
|
|
|
|
|
|
|
|
|
|
Inter-segment
eliminations
|
$
|
(76)
|
|
$
|
(43)
|
|
$
|
(72)
|
|
$
|
(136)
|
|
$
|
(327)
|
Corporate
expenses
|
$
|
(66)
|
|
$
|
(60)
|
|
$
|
(79)
|
|
$
|
(78)
|
|
$
|
(283)
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
Total net
sales
|
$
|
3,224
|
|
$
|
2,054
|
|
$
|
3,588
|
|
$
|
3,926
|
|
$
|
12,792
|
Total adjusted
operating income (loss)
|
274
|
|
(52)
|
|
396
|
|
448
|
|
1,066
|
Total adjusted
operating income margin
|
8.5%
|
|
(2.5)%
|
|
11.0%
|
|
11.4%
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
Key Definitions
The terms below are commonly used by
management and investors in assessing ongoing financial
performance.
Organic Net Sales Change: BorgWarner net sales change year over
year excluding the estimated impact of foreign exchange (FX) and
net M&A.
Market: Light and commercial vehicle production weighted for
BorgWarner's geographic exposure as estimated by BorgWarner.
Outgrowth: "Organic Net Sales Change" excluding Aftermarket
segment vs. year-over-year change in "Market".
View original content to download
multimedia:http://www.prnewswire.com/news-releases/borgwarner-reports-record-net-sales-for-the-first-quarter-2021-up-76-compared-with-first-quarter-2020-301283920.html
SOURCE BorgWarner