BorgWarner has recorded first-quarter net sales down 11.2% to US$2.3bn.
Operating income was US$189m or 8.3% of net sales, while excluding the US$45m of pre-tax expenses related to non-comparable items, adjusted operating income was US$234m.
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The supplier is providing updated 2020 full year guidance. This guidance is for BorgWarner as currently consolidated and excludes the potential impact from the acquisition of Delphi Technologies, which BorgWarner announced on January 28, 2020.
Net sales are expected to be in the range of US$7.25bn to US$8bn. This implies a year-over-year decrease in organic sales of 20% to 27%. The company expects its blended light-vehicle market to decline in the range of approximately 25% to 31% in 2020.
Due to the impact of coronavirus, global light vehicle production expectations remain volatile. Foreign currencies are expected to result in a year-over-year decrease in sales by around US$120m, primarily due to the depreciation of the Euro, Chinese Renminbi and Korean Won against the US dollar.
The divestiture of the thermostat product line decreased year-over-year sales by approximately US$30m. Full-year operating cash flow is expected to be in the range of US$530m to US$780m, while free cash flow is expected to be in the range of US$100m to US$300m.
