US: BorgWarner back in black
Author: Graeme Roberts | 11 February 2010
BorgWarner has reported fourth quarter net earnings of $52.7m, or $0.45 a share, compared with a net loss of $81.4m, or $0.70 per share in fourth quarter 2008. Q4 2009 included non-recurring items of $0.03 per diluted share while Q4 2008 included net non-recurring items of -$0.70 per share. Sales grew 28.6% and positive free cash flow was $79.9m.
Operating income was $67.3m, or 5.6% of sales.
Full-year sales were down almost 25% to $3.96bn and net earnings were $27m, or $0.23 per share, compared with a net loss of $35.6m, or $0.31 per share in 2008. Full-year 2009 net earnings included net non-recurring items of $(0.17) per diluted share while full-year 2008 included net non-recurring items of $(2.38) per diluted share.
"Strong sales growth combined with our lean cost structure drove fourth quarter results," said chairman and CEO Timothy Manganello. "We were able to control costs as volumes improved in our base business. As a result, our operating margin improved substantially to 5.6% in fourth quarter 2009 from 0.5% in fourth quarter 2008, excluding non-recurring items."
Sales in 2010 are expected to grow 15% to 19% in 2010 compared with 2009, while full year earnings are expected to be in the range of $1.40 to $1.70 a share.
"We are optimistic about 2010, but also cautious as we contemplate the range of possible outcomes around the world," Manganello added. "The recovery that we have seen in North America over the last two quarters is the foundation of our optimism. Based on a number of indicators, we expect production rates reached in the second half of 2009 in North America to extend into 2010. Furthermore, we believe that there may be potential upside to that scenario. We are also excited about our Asian businesses where higher production levels and new program launches in China, India, Korea and Japan are expected to drive growth for our company."
"Our caution for 2010 is primarily related to Europe where visibility has improved from a year ago but is still limited due to uncertainty surrounding consumer demand, the impact of expiring government-sponsored incentive programmes and other market dynamics."
Sectors: Components, Financial
Companies: BorgWarner
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