BorgWarner has reported first quarter 2013 net earnings of US$142m ($1.22 per share) versus $158m, ($1.28) a year ago. Excluding non-comparable items, net earnings were $1.30 per share on sales of $1,851m, down 3%.
Excluding negative currency effects and 2012 dispositions, sales were down about 1%, the supplier said. Net earnings were up 2% and a first quarter record.
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Operating income was $199m. Excluding $17m of exceptional items, operating income was $216m, or 11.7% of sales.
“Outstanding performance by our operations drove our strong first quarter results,” claimed president and CEO James Verrier in a statement. “The focus on fuel economy and improved emissions continued to drive [our] growth in most parts of the world but sharp declines in light vehicle production in Europe, a market that comprises nearly half of our sales, more than offset this growth.
“Excluding the impact of foreign currencies and 2012 dispositions, our net sales were down approximately 1% in the first quarter compared with first quarter 2012, in line with global light vehicle production, which was down 1%. Light vehicle production in Europe was down 9% in the same period. Despite a challenging sales environment, operational efficiency and cost controls enabled us to post a strong operating margin of 11.7% in the quarter, excluding non-comparable items.”
The company’s outlook for 2013 is unchanged. Annual sales growth is expected to be 2% to 6% compared with 2012. Net earnings are expected to be within a range of $5.15 to $5.45 per share, excluding non-comparable items. Operating income, as a percentage of net sales, is expected to be 11.5% or better, excluding non-comparable items.
