BorgWarner Inc. (NYSE: BWA) today provided 2013 earnings guidance of $5.15 to $5.45 per diluted share, which implies earnings growth of 5% to 9% compared with 2012 earnings guidance of $4.90 to $5.00 per diluted share, excluding nonrecurring items.
2013 Guidance Highlights:
- Net earnings of $5.15 to $5.45 per diluted share, up 5% to 9% compared with 2012 net earnings guidance of $4.90 to $5.00 per diluted share, excluding non-recurring items.
- Reported sales growth of 2% to 6% compared with 2012 sales guidance. Excluding the impact of disposal activities in 2012, the company expects sales growth of 3% to 7%.
- Operating income margin of 11.5% or better.
- Capital expenditures, including tooling outlays, of $450 million to $500 million.
“In 2013, 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 2% to 6% in 2013 compared with 2012, despite a challenging environment for growth, particularly in Europe. Excluding the impact of disposal activities in 2012, our sales growth is expected to be 3% to 7% while global light vehicle production is expected to grow approximately 1%, and European light vehicle production is expected to decline approximately 3%, during the same period. Demand for our product technologies that improve fuel economy, emissions and performance, continues to accelerate around the globe.”
The company expects its 2013 operating income margin to be 11.5% or better, in line with its operating income margin guidance for 2012. The expectation of stable margins can be largely attributed to incremental income from higher sales, restructuring actions taken in 2012 and an ongoing focus on cost reductions. 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 $1.28 in 2013, flat with 2012.
Today, at approximately 10:15 am 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/Webcasts/default.aspx.
