BorgWarner has posted full-year 2018 net sales up 7.5% to US$10.5bn.
Full-year 2018 net earnings were US$931m, up from US$440m. The impact of foreign currencies increased net sales by around US$202m and increased net earnings by US$0.08 per diluted share in 2018 compared with 2017.
The impact of the acquisition of Sevcon increased net sales by approximately US$57m and decreased net earnings by around US$0.05 per diluted share in 2018 compared with 2017.
Fourth-quarter net sales were US$2,573m , down 0.5% from US$2,586m in 2017. Net income in the quarter was US$230m or US$1.10 per diluted share, compared with a net loss of US$(146m), or US$(0.70) per basic share, in fourth quarter 2017.
Full Year 2019 Guidance:
Full year organic growth for the company’s estimated light vehicle market exposure is expected to be 250 to 400 basis points. Net sales are expected to be in the range of US$9.90bn to US$10.37bn.
This implies year over year organic sales change of down 2.5% to up 2%. The company expects its light vehicle market exposure to decline by 2% to 5% in 2019.
Foreign currencies are expected to decrease sales by US$280m due to the depreciation of the Euro and Chinese Yuan. The divestiture of the thermostat product line will decrease sales by around US$98m.