BorgWarner has reported net earnings for the second quarter 22% down, hit by currency effects and a stronger dollar.
The company said the impact of foreign currencies decreased second quarter 2015 net sales growth by approximately 11% compared with second quarter 2014. However, excluding the impact of foreign currencies, it said net sales were up 4% compared with second quarter 2014.
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Net earnings in the quarter were US$148m, or US$0.65 per diluted share, 22% down on the same quarter of last year.
“Our operations performed well in the second quarter despite a challenging environment for growth,” said James R. Verrier, President and CEO of BorgWarner. Verrier maintains that underlying demand for the company’s products remains strong, despite adverse developments in some global markets.
“The demand for our advanced powertrain technology, designed to improve fuel economy, emissions and vehicle performance, remained strong around the globe, but our growth was impacted by an unfavourable mix of light vehicle production in North America, slower light vehicle production growth in China and weak commercial vehicle markets around the world. Despite this, our operating income margin was an impressive 12.9% in the quarter, excluding non-comparable items.”
BorgWarner also lowered its sales and profits full-year guidance on the basis of weaker than expected market conditions, particularly slower light vehicle production growth in China and an unfavourable production mix in North America.
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