Tier-1 automotive supplier BorgWarner has cut its 2023 sales outlook due to adverse currency movements. In particular, income from its China operations will be dented by a stronger dollar and weaker yen.
Net sales for 2023 are now expected to be in the range of $14.1 billion to $14.3 billion (previous range $14.2 billion to $14.6 billion), compared with 2022 sales of approximately $12.6 billion. Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $110 million. The weaking of the Chinese yuan against the US dollar is only partially offset by the strengthening of the euro against the US dollar, the company said.
While the 2023 revenue forecast for the company has been shaved down, there is still a signficant rebound as its OE customers have scheduled more orders as industry supply shortages have eased.
The acquisitions of Santroll’s light vehicle eMotor business, Rhombus Energy Solutions, Drivetek and SSE are expected to increase year-over-year sales by an aggregate of approximately $63 million, BorgWarner said.
Operating margin for the full year is expected by BorgWarner to be in the range of 8.1% to 8.2%.
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