BorgWarner Inc. today reported third quarter results.
Charging Forward Update:
- Based on new business awards and actions announced to date, BorgWarner believes it is already on track to achieve approximately $4 billion of electric vehicle revenue by 2025. The Company continues to expect its 2022 electric vehicle revenue to grow to approximately $850 million, which is more than double what it was in 2021.
- BorgWarner has agreed to acquire the charging business of Hubei Surpass Sun Electric (SSE). The acquisition complements BorgWarner’s existing European and North American charging footprints by adding a China presence. The Company now expects DC fast charging related revenue in the range of $225 million to $275 million by 2025.
- BorgWarner has been granted a production increase to supply its 800V silicon carbide (SiC) inverters to a premium European OEM. The initial order has now been significantly increased with production for this program set to begin in 2024.
- BorgWarner will supply electric motors for E-Axles of a European commercial vehicle OEM. This e-axle is designed to equip new electric light commercial trucks ranging up to 7.5 tons. Production is expected to begin in early 2023.
Third Quarter Highlights:
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- U.S. GAAP net sales of $4,060 million, an increase of 19% compared with third quarter 2021.
- Excluding the impact of foreign currencies, the 2022 acquisitions of Santroll’s light vehicle eMotor business and, Rhombus Energy Solutions, and the 2021 divestiture of the Water Valley, Mississippi business, organic sales were up 29% compared with the third quarter 2021.
- U.S. GAAP net earnings of $1.16 per diluted share.
- Excluding $(0.08) per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.24 per diluted share.
- U.S. GAAP operating income of $389 million, or 9.6% of net sales.
- Excluding $49 million of pretax expenses related to non-comparable items, adjusted operating income was $438 million, or 10.8% of net sales.
- Net cash provided by operating activities of $347 million.
- Free cash flow was $167 million.
SOURCE: BorgWarner
