BorgWarner has reported third quarter 2012 net earnings of US$0.85 per share. Adjusted, the profit was a record $1.19, a new third quarter record. Sales slipped 5% to $1,695m.
Operating income was $163m. Stripping out $29m in pre-tax costs associated with disposal and restructuring, operating income was $192m or 11.3% of net sales, also a new third quarter record.
The supplier now expects 2012 sales growth of 0% to 1% compared with 4% to 6% previously. Or 5% to 6% exclusing adverse exhange effects.
It expects 2012 net earnings of $4.90 to $5.00 per share, down from $5.05 to $5.25; adjusted to exclude non-comparable items, this would be a record and up 10% to 12% compared with 2011.
“Our operations were very efficient in the quarter,” said chairman and CEO Timothy Manganello.
“Despite declines in light vehicle production in Europe, our largest market, the focus on fuel economy and improved emissions around the globe continued to drive growth.”
He said light vehicle production in Europe, accounting for over half of sales, was down 6%.
“In a challenging sales environment, we did an excellent job managing costs.
“Our outlook for Europe, our largest market, has deteriorated due to the general economic slowdown across the continent and its impact on the automotive industry. Despite this, we expect to deliver record earnings this year,” Manganello added.
Nine-month sales were $5,464m, up 2% from $5,341m in the first nine months of 2011. Net earnings were down to $380m, or $3.15 per share, compared with $428m, or $3.45, in the first nine months of 2011.
The impact of foreign currencies, primarily the euro, decreased sales by $303m and net earnings about $0.20 per share.