AUBURN HILLS, Mich., Aug. 14, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) (the "Company") today announced the expiration and final results of its previously announced tender offers (the "Tender Offers") to purchase for cash any and all of the Company's outstanding 3.375% Senior Notes due 2025 (the "3.375% Notes") and 5.000% Senior Notes due 2025 (the "5.000% Notes" and collectively with the 3.375% Notes, the "Notes"), on the terms and conditions set forth in the Offer to Purchase, dated August 7, 2024 ...

AUBURN HILLS, Mich., Aug. 13, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) (the "Company") today announced that it has priced the previously announced tender offers (the "Tender Offers") to purchase for cash any and all of the Company's outstanding 3.375% Senior Notes due 2025 and 5.000% Senior Notes due 2025 (collectively, the "Notes"). All terms and conditions set forth in the Offer to Purchase, dated August 7, 2024 (the "Offer to Purchase") and the related Notice of Guaranteed Delivery attached to th ...

AUBURN HILLS, Mich., Aug. 7, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) ("BorgWarner" or the "Company") announced today it priced a public offering of $500 million aggregate principal amount of its 4.950% Senior Notes due 2029 (the "2029 Notes") and $500 million aggregate principal amount of its 5.400% Senior Notes due 2034 (the "2034 Notes" and, together with the 2029 Notes, the "Senior Notes"). The Company expects that it will receive approximately $987 million of net proceeds from the offering afte ...

AUBURN HILLS, Mich., Aug. 7, 2024 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) (the "Company") today announced that it has commenced tender offers to purchase for cash the debt securities issued by the Company listed in the table below (collectively, the "Notes," and each a "series"). | --- | --- | --- | --- | --- | --- | |------------------------------|-----------------------|------------------------------|-----------------------------------------|--------------------------|--------------| | Title of Securi ...

Financial Performance - Net sales for the three months ended June 30, 2024, were $3,603 million, a decrease of 1.8% compared to $3,671 million for the same period in 2023[11]. - Gross profit for the three months ended June 30, 2024, was $685 million, compared to $680 million for the same period in 2023, reflecting a slight increase[11]. - Operating income for the three months ended June 30, 2024, was $297 million, down from $333 million in the same period last year, indicating a decrease of 10.8%[11]. - Net earnings attributable to BorgWarner Inc. for the three months ended June 30, 2024, were $303 million, compared to $204 million for the same period in 2023, representing an increase of 48.5%[11]. - Earnings per share attributable to BorgWarner Inc. for the three months ended June 30, 2024, were $1.34, up from $0.88 in the same period last year, marking a growth of 52.3%[11]. - Comprehensive income attributable to BorgWarner Inc. for the three months ended June 30, 2024, was $259 million, compared to $135 million for the same period in 2023, reflecting a 92.6% increase[13]. - Net earnings from continuing operations for the six months ended June 30, 2024, were $557 million, compared to $427 million for the same period in 2023, representing a 30.5% increase[148]. Assets and Liabilities - Total assets as of June 30, 2024, were $14,108 million, a decrease from $14,453 million as of December 31, 2023[8]. - Total liabilities as of June 30, 2024, were $7,823 million, down from $8,387 million as of December 31, 2023, indicating a reduction of 6.7%[8]. - Cash and cash equivalents as of June 30, 2024, were $1,288 million, compared to $1,534 million as of December 31, 2023, reflecting a decrease of 16.1%[8]. - The net goodwill balance decreased to $2,965 million as of June 30, 2024, from $3,013 million on December 31, 2023, reflecting a reduction of 1.6%[79]. - The total product warranty liability increased to $204 million as of June 30, 2024, compared to $196 million on December 31, 2023, marking a growth of 4.1%[84]. Cash Flow and Operating Activities - Net cash provided by operating activities of continuing operations was $344 million for the six months ended June 30, 2024, up from $289 million in the same period of 2023, indicating an increase of 19.1%[15]. - Cash, cash equivalents, and restricted cash at the end of the period were $1,288 million, compared to $848 million at the end of the same period in 2023, showing a significant increase of 51.8%[15]. Acquisitions and Investments - The company completed the acquisition of Eldor Corporation's electric hybrid systems business for €72 million ($78 million) and may pay up to €175 million ($191 million) in earn-out payments based on future business performance[25]. - The acquisition of Hubei Surpass Sun Electric's electric vehicle solution business was completed for ¥288 million ($42 million), enhancing the company's presence in China[29]. - The total consideration for the acquisition of Drivetek AG was ₣37 million ($39 million), including ₣10 million ($10 million) of estimated earn-out payments[32]. - The company paid $131 million at closing for the acquisition of Rhombus Energy Solutions, with up to $30 million of earn-out payments contingent upon achieving specific sales and gross margin targets[34]. - The total final consideration for the acquisition of Santroll Automotive Components was $192 million, including approximately ¥1.0 billion ($152 million) of base purchase price[36]. Research and Development - Gross R&D expenditures for the three months ended June 30, 2024, were $220 million, an increase from $213 million in the same period of 2023[65]. - Net R&D expenditures for the six months ended June 30, 2024, were $376 million, compared to $349 million for the same period in 2023[65]. Taxation - The company recorded a discrete tax benefit of $89 million during the three months ended June 30, 2024, related to unrecognized tax benefits[69]. - The effective tax rate for the six months ended June 30, 2024, was 5%, a decrease from 19% for the same period in 2023[70]. Segment Performance - Net sales for the Air Management segment reached $1,974 million for the three months ended June 30, 2024, compared to $2,027 million in the same period of 2023, indicating a slight decline of 2.6%[145]. - The Drivetrain & Battery Systems segment reported net sales of $1,196 million for the three months ended June 30, 2024, consistent with the previous year[145]. - The ePropulsion segment achieved net sales of $464 million for the three months ended June 30, 2024, compared to $566 million in the same period of 2023, a decrease of 18.0%[145]. - For the six months ended June 30, 2024, Air Management segment net sales were $4,004 million with a Segment Adjusted Operating Income of $612 million and a margin of 15.3%[203]. - Drivetrain & Battery Systems segment net sales for the six months ended June 30, 2024, were $2,355 million, with Segment Adjusted Operating Income of $334 million and a margin of 14.2%[203]. - ePropulsion segment net sales for the six months ended June 30, 2024, were $900 million, resulting in a Segment Adjusted Operating Loss of $111 million and a margin of (12.3)%[203]. Restructuring and Expenses - The company reported a restructuring expense of $25 million for the three months ended June 30, 2024, compared to $9 million in the same period last year[11]. - The company’s restructuring expenses for the six months ended June 30, 2024, totaled $44 million, including $30 million in employee termination benefits[51]. - The Company approved a $75 million restructuring plan in June 2024 for its ePropulsion segment due to increased market volatility[58]. - A restructuring plan announced in 2023 is expected to yield annual savings of $80 million to $90 million by 2027, with $130 million to $150 million allocated for the initiative[178]. Stockholder Information - Total stockholders' equity as of June 30, 2024, was $6,285 million, a decrease from $6,042 million as of March 31, 2024[125]. - Dividends declared for the three months ended June 30, 2024, were $25 million, reflecting a dividend of $0.11 per share[125]. - The balance of retained earnings as of June 30, 2024, was $6,620 million, down from $6,325 million as of March 31, 2024[125].

Financial Data and Key Metrics Changes - BorgWarner's Q2 2024 sales were approximately $3.6 billion, reflecting a year-over-year decrease of almost 2% or $62 million due to a strengthening US dollar [16] - Adjusted operating income for Q2 was $376 million, resulting in a margin of 10.4%, an increase from 10.1% in the prior year [17][31] - Free cash flow from continuing operations was $297 million, up $267 million from the previous year, attributed to strong working capital and capital expenditure performance [19][45] Business Line Data and Key Metrics Changes - BorgWarner secured multiple new product awards across combustion, hybrid, and electric powertrains, indicating strong product leadership [30] - The eFan systems for commercial vehicles represent the largest eFan business win in North America, with production expected to start in Q4 2027 [5] - The company is restructuring its ePropulsion segment to adjust its cost structure, expecting annual run rate cost savings of about $100 million by 2026 [32][43] Market Data and Key Metrics Changes - The full-year sales guidance for 2024 has been reduced to a range of $14.1 billion to $14.4 billion, down from previous guidance of $14.4 billion to $14.9 billion, primarily due to weaker foreign currencies and a lower market production outlook [20][22] - The company expects to outgrow market production by 350 to 450 basis points, despite a projected decline in market production of 2% to 3% [21][22] Company Strategy and Development Direction - BorgWarner is focused on powertrain efficiency, including combustion fuel efficiency and electron efficiency for hybrids and BEVs [12][14] - A new business unit structure has been introduced to enhance cost synergies and improve clarity for stakeholders [8][10] - The company plans to allocate all free cash flow to shareholders through share repurchases and dividends, with an intention to repurchase $300 million of stock in the second half of 2024 [38][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sales performance through organic growth above market production, despite a challenging production environment [14][45] - The restructuring actions in the ePropulsion segment are expected to improve near-term earnings and position the business for future growth [43] - Management highlighted the importance of maintaining a strong product portfolio to navigate the volatile propulsion mix environment [102] Other Important Information - BorgWarner has reduced its greenhouse gas emissions by 32% from the 2021 baseline, progressing towards its goal of an 85% reduction by 2030 [35] - The company is experiencing strong interest in its EGR product portfolio, which supports the need for efficient combustion engines [7] Q&A Session Summary Question: What is the rationale behind the eProduct restructuring not including Europe? - The restructuring is focused on North America and China due to the business unit's engineering and footprint concentration in these regions [50] Question: Are there any benefits expected from the ICE and hybrid side of the business? - Management indicated that they are focusing on converting additional revenue from various propulsion mixes, including hybrids and BEVs [51] Question: How does the company view its margin outlook for the second half of the year? - The company expects to maintain a strong margin profile, with an increase in full-year margin guidance to 9.6% to 9.8% [40] Question: What is the impact of tariffs on the eProduct business in China? - Management noted that the eProduct business in China is growing, with a significant portion of products used for hybrids and BEVs, and the impact of tariffs is still uncertain [98][113] Question: How does the company plan to allocate capital moving forward? - The focus will be on shareholder returns through stock repurchases, with M&A being less likely in the near term [115]

10 Countries eProduct Growth eProduct Profitability Maximize Foundational Value $2.5-$2.8B 2024E eProduct Sales Guidance ▪ 88% of 2022 sales from clean and emissionsreducing products ▪ Commitment to carbon neutrality by 2035 ▪ 338 engineers enrolled in three cohorts Combustion Combustion + Advanced Hybrid Resilient Product Portfolio Well-Positioned for Growth Believe Foundational Portfolio Positioned for Outgrowth 11 | --- | --- | --- | --- | --- | --- | |--------|--------|---------------------------------| ...

BorgWarner (BWA) came out with quarterly earnings of $1.19 per share, beating the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $1.35 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 21.43%. A quarter ago, it was expected that this auto parts supplier would post earnings of $0.87 per share when it actually produced earnings of $1.03, delivering a surprise of 18.39%. Over the last four quarters, the c ...

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|----------------------------| | | | | | | Immediate Release | | | | | | | Contact: Patrick Nolan | | | | | | | 248.754.0884 | Auburn Hills, Michigan, July 31, 2024 – BorgWarner Inc. (NYSE: BWA) today reported second quarter results. Business Update Second Quarter Highlights (continuing operations basis): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Earnings per diluted share $ 1.39 $ 0.97 $ 2.32 $ 1.6 ...

| --- | --- | --- | --- | |--------------------------------------------|---------------|-------------------|-------| | | June 30, 2024 | December 31, 2023 | | | ASSETS | | | | | Cash, cash equivalents and restricted cash | $ 1,288 | $ 1,534 | | | Receivables, net | 3,111 | 3,109 | | | Inventories, net | 1,322 | 1,313 | | | Prepayments and other current assets | 283 | 261 | | | Total current assets | 6,004 | 6,217 | | | --- | --- | --- | --- | |--------------|-------|-------|--------------------------------- ...