BorgWarner delivered earnings of $1.30 per share in the third quarter of 2003 on a 6% sales increase. According to the company, increased demand for the company’s fuel-efficient engine technology and four-wheel drive systems continued to drive growth.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company reported 2003 third quarter net earnings of $35.9 million or $1.30 per share, compared with $31.9 million, or $1.18 per share last year. Third quarter 2003 sales were $725.2 million compared with $684.0 million in the 2002 third quarter. These results came in the face of a very weak automotive market, with production soft in all regions, especially North America which was off 5%.
Net earnings for the first nine months of 2003 were $124.9 million or $4.59 per share compared with $109.1 million or $4.07 per share for the 2002 period before the cumulative effect of the change in accounting for goodwill. Sales were $2,270.4 million, up 12% over 2002 nine-month sales of $2,030.3 million.
“We continue to see strong sales growth for our turbochargers and four-wheel drive systems,” said Timothy M. Manganello, Chairman and CEO. “These include our electronic all-wheel systems for crossover vehicles such as those from Honda, Acura and Hyundai, and four-wheel drive systems for new GM applications. In Europe, the demand for fuel-efficient cars is driving the growth of our engine-related products, while our Asian customers are experiencing significant growth in North America.”
Manganello tightened the company’s full-year 2003 guidance to a range of $6.25 to $6.35 per share. Commenting on the company’s 2004 outlook, Mr. Manganello noted that the company expects overall stability but little growth in the global auto market. “We expect BorgWarner’s performance to continue to outpace that of the global auto industry because our powertrain technology serves the fastest growing areas of the market. With our fuel-efficient products for Europe and new business among Japanese and Korean automakers, we expect to achieve our growth targets of 8% to 11% in sales, and 12% to 16% in earnings in 2004. We will release our pipeline of new business for 2004 through 2006 in early November, and we expect this business to provide the platform for our growth.”
