BorgWarner Inc. (NYSE: BWA) today provided 2014 earnings guidance of $3.10 to $3.25 per diluted share, which implies earnings growth of 12% to 15% compared with 2013 earnings guidance of $2.78 to $2.83 per diluted share, excluding nonrecurring items.
2014 Guidance Highlights:
Net earnings of $3.10 to $3.25 per diluted share, up 12% to 15% compared with 2013 net earnings guidance of $2.78 to $2.83 per diluted share, excluding non-recurring items.
Organic sales growth of 7% to 11% compared with 2013 sales guidance.
Operating income margin of 12.5% or better.
Capital expenditures, including tooling outlays, of $450 million to $500 million.
Excludes the pending acquisition of Gustav Wahler GmbH u. Co. KG and its general partner.
“In 2014, we expect another record year for sales and earnings,” said James Verrier, BorgWarner President and CEO. “Our backlog of net new business is expected to drive sales growth of 7% to 11% in 2014 compared with 2013 as demand for our product technologies that improve fuel economy, emissions and performance, continues to accelerate around the globe.”
The company expects its 2014 operating income margin to be 12.5% or better, up from its operating income margin guidance of 12.0% or better for 2013. The expectation of improved margins can be largely attributed to incremental income from higher sales, improved operational efficiency and ongoing focus on managing costs. Strong operational performance is expected to offset the costs of global growth, higher raw material costs and other inflationary cost pressures.
The company expects an average U.S. Dollar to Euro exchange rate of $1.32 in 2014.
Today, at approximately 12:50 pm ET, the company will webcast its presentation at the Deutsche Bank Global Auto Industry Conference in Detroit, Michigan, which will include a discussion of its guidance. The webcast can be accessed at: http://www.borgwarner.com/en/Investors/default.aspx.
