Adjusts full year net sales and net earnings guidance
BorgWarner Inc. (NYSE: BWA) today reported third quarter results.
Third Quarter Highlights:
- U.S. GAAP net sales of $1,884 million, down 7% compared with third quarter 2014.
- Excluding the impact of foreign currencies, net sales were up 3% compared with third quarter 2014.
- U.S. GAAP net earnings of $0.70 per diluted share.
- Excluding the $(0.04) per diluted share impact of restructuring, the $(0.02) per diluted share impact of M&A expense and the $0.02 per diluted share impact of tax adjustments, net earnings were $0.73 per diluted share.
- U.S. GAAP operating income of $237 million.
- Excluding the $9 million pretax impact of restructuring expense and the $4 million pretax impact of M&A expense, operating income was $250 million, or 13.3% of net sales, up from 12.5% in third quarter 2014.
2015 Guidance: The company has adjusted its 2015 full year guidance. Net sales growth is now expected to be within a range of -6.0% to -5.0% compared with 2014. Excluding the impact of foreign currencies, net sales growth is expected to be approximately 4.5%. Net earnings per share, excluding noncomparable items, is expected to be within a range of $2.95 to $3.00 per diluted share. Operating income, as a percentage of net sales, excluding non-comparable items, is expected to be approximately 13%.
Financial Results: Net sales were $1,884 million in third quarter 2015, down 7% from $2,032 million in third quarter 2014. Net earnings in the quarter were $157 million, or $0.70 per diluted share, compared with $167 million, or $0.73 per diluted share, in third quarter 2014. Third quarter 2015 net earnings included net non-comparable items of $(0.03) per diluted share. Third quarter 2014 net earnings included noncomparable items of $(0.06) per diluted share. These items are listed in a table below as reconciliations of non-U.S. GAAP measures, which are provided by the company for comparison with other results, and the most directly comparable U.S. GAAP measures. The impact of foreign currencies decreased net sales by approximately $214 million and decreased net earnings by approximately $0.08 per diluted share in third quarter 2015 compared with third quarter 2014.
Net sales were $5,900 million for the first nine months of 2015, down 7% from $6,313 million in the first nine months of 2014. Net earnings in the first nine months of 2015 were $484 million, or $2.14 per diluted share, compared with $516 million, or $2.25 per diluted share, in the first nine months of 2014. Net earnings in the first nine months of 2015 included net non-comparable items of $(0.12) per diluted share. Net earnings in the first nine months of 2014 included non-comparable items of $(0.25) per diluted share. These items are listed in a table below as reconciliations of non-U.S. GAAP measures, which are provided by the company for comparison with other results, and the most directly comparable U.S. GAAP measures. The impact of foreign currencies decreased net sales by approximately $684 million and decreased net earnings by approximately $0.26 per diluted share in the first nine months of 2015 compared with the first nine months of 2014.
Click here to view the full release including financial tables.
