Europe impacts negatively on BorgWarner in 1st quarter results
May 1, 2013
BorgWarner, a global provider of automotive powertrain technology based in Auburn Hills, Michigan, USA reports that 1st Quarter 2013 net sales were down approximately 1% to $1.851 million compared with the same period in 2012. The company achieved an operating income of $216 million, or 11.7% of sales.
“Outstanding performance by our operations drove our strong first quarter results,” stated James Verrier, President and CEO of BorgWarner. “The focus on fuel economy and improved emissions continued to drive growth for BorgWarner 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.’’
The company’s outlook for 2013 is unchanged. Annual net sales growth is expected to be up by 2% to 6% compared with 2012, Engine segment net sales were $1,258 million in 1st quarter 2013 compared with $1,308 million in the same period in 2012. However, higher sales of variable cam timing systems in Japan and emissions systems in Asia and the Americas were more than offset by lower production volumes in Europe. Drivetrain segment net sales were $601 million in first quarter 2013, compared with $611 million in 2012.
BorgWarner has operating manufacturing and technical facilities in 57 locations in 19 countries, including powder metallurgy plants in the USA.