BorgWarner reported third quarter 2010 US GAAP earnings of $0.87 per share compared with $0.15 a year ago. Sales were up 37.3% from third quarter 2009 to a record $1,410.9m, the rise sharply higher than global vehicle production growth of approximately 10%. Operating income was $123.0m, or 8.7% of sales.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“New business growth drove our third quarter results as our leading-edge powertrain technology continued to penetrate the global market,” said chairman and CEO Timothy Manganello.
“Our sales were up 37% in third quarter 2010 compared with third quarter 2009, or 44% excluding the impact of currency, while global vehicle production was up 10%. We grew in every major region of the world, most notably in China where our sales were up nearly 70%. Our sales in China now represent approximately 6% of our consolidated sales and have nearly doubled from a year ago. Favorable macroeconomic trends, such as the continued volume shift in Europe toward vehicles with higher BorgWarner content, including diesels, also drove higher sales. A continued focus on execution at our operations resulted in a strong operating income margin of 8.7% in the third quarter, up from 2.7% a year ago.”
The supplier raised its earnings guidance for 2010 to a range of $2.85 to $2.95 per share from a previous range of $2.60 to $2.80.
Revenue growth in 2010 is now expected to be approximately 40% compared with 2009. “Our outlook for vehicle production in North America, Europe and China has improved since our July 2010 guidance,” Manganello said. “More importantly, we expect our growth to outpace the market as demand for our products continues to gain momentum. It is our expectation that 2010 will be a record year for the company for both sales and earnings.”
For the first nine months of 2010, sales were $4,119.4m, up 49.1% from $2,763.5m in the first nine months of 2009. Net earnings in the first nine months of 2010 were $265.7m, or $2.18 per share, compared with a net loss of $25.7m, or $(0.22) per diluted share, in the first nine months of 2009.
