BorgWarner has reported a 4.8% fall in quarterly revenue as a stronger dollar reduced the value of overseas sales.
First quarter net income rose to US$178.9m from US$159.1m a year earlier.
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Revenue fell to 4.8% to US$1.98bn from US$2.08bn.
The results missed analyst expectations.
BorgWarner focused on its underlying operating performance. “Outstanding operating performance drove our first quarter results,” said James R. Verrier, President and Chief Executive Officer, BorgWarner.
“The strong performance enabled us to achieve an impressive operating income margin of 13.1%, excluding non-comparable items, in line with our operating margin a year ago. The demand for our advanced powertrain technology, designed to improve fuel economy, emissions and vehicle performance, continued around the globe, but our growth was temporarily impacted by an unfavourable mix of light vehicle production in North America and launch delays in Asia. We believe these issues are short term and should not impact our full year growth expectations.”
The company has updated its 2015 full year guidance and said that due to the strong dollar, net sales growth is now expected to be within a range of -4% to 0% compared with 2014, down from 2% to 6% previously. Excluding the impact of weakening foreign currencies, net sales growth is expected to be within a range of 9.5% to 12%, unchanged from the previous guidance.
