Reaffirms 2016 first quarter and full year net sales and net earnings guidance
BorgWarner Inc. (NYSE: BWA) today reported fourth quarter and full year 2015 results.
Fourth Quarter Highlights:
- U.S. GAAP net sales of $2,123 million.
- Excluding the impact of foreign currencies and the Remy acquisition, net sales were up 7.1% compared with fourth quarter 2014.
- U.S. GAAP net earnings of $0.56 per diluted share.
- Excluding $(0.21) per diluted share related to net non-comparable items (detailed in the table below) and $0.02 per diluted share of net earnings related to the Remy acquisition, net earnings were $0.75 per diluted share.
- U.S. GAAP operating income of $201 million.
- Excluding $68 million of pretax expenses related to non-comparable items and $8 million of operating income net of purchase accounting adjustments related to the Remy acquisition, operating income was $261 million, or 13.2% of net sales.
Full Year Highlights:
- U.S. GAAP net sales of $8,023 million.
- Excluding the impact of foreign currencies and the Remy and Wahler acquisitions, net sales were up 4.3% compared with 2014.
- U.S. GAAP net earnings of $2.70 per diluted share.
- Excluding $(0.34) per diluted share related to net non-comparable items (detailed in the table below) and $0.02 per diluted share of net earnings related to the Remy acquisition, net earnings were $3.02 per diluted share.
- U.S. GAAP operating income of $940 million.
- Excluding $102 million of pretax expenses related to net non-comparable items and $8 million of operating income net of purchase accounting adjustments related to the Remy acquisition, operating income was $1,034 million, or 13.2% of net sales.
First Quarter 2016 Guidance: The company has reaffirmed its 2016 first quarter guidance. Net sales growth is expected to be within a range of 8.3% to 13.3% compared with first quarter 2015. Excluding the impact of foreign currencies and the Remy acquisition, net sales growth is expected to be within a range of -0.3% to 2.7%. Net earnings are expected to be within a range of $0.75 to $0.79 per diluted share. Excluding the Remy acquisition, net earnings are expected to be within a range of $0.72 to $0.76 per diluted share. Operating income, as a percentage of net sales, is expected to be above 12%. Excluding the Remy acquisition, operating income, as a percentage of net sales, is expected to be above 13%.
Full Year 2016 Guidance: The company has reaffirmed its 2016 full year guidance. Net sales growth is expected to be within a range of 13.2% to 18.3% compared with 2015. Excluding the impact of foreign currencies and the Remy acquisition, net sales growth is expected to be within a range of 2.5% to 5.5%. Net earnings are expected to be within a range of $3.11 to $3.32 per diluted share. Excluding the Remy acquisition, net earnings are expected to be within a range of $2.98 to $3.18 per diluted share. Operating income, as a percentage of net sales, is expected to be above 12%. Excluding the Remy acquisition, operating income, as a percentage of net sales, is expected to be above 13%.
Financial Results: Net sales were $2,123 million in fourth quarter 2015, up 6.6% from $1,992 million in fourth quarter 2014. Net earnings in the quarter were $125 million, or $0.56 per diluted share, compared with $140 million, or $0.61 per diluted share, in fourth quarter 2014. Fourth quarter 2015 net earnings included net noncomparable items of $(0.21) per diluted share. Fourth quarter 2014 net earnings included non-comparable items of $(0.14) 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 $157 million and decreased net earnings by approximately $0.06 per diluted share in fourth quarter 2015 compared with fourth quarter 2014.
Full year 2015 net sales were $8,023 million, down 3.4% from $8,305 million in 2014. Full year 2015 net earnings were $610 million, or $2.70 per diluted share, compared with $656 million, or $2.86 per diluted share, in 2014. Full year 2015 net earnings included net non-comparable items of $(0.34) per diluted share. Full year 2014 included net non-comparable items of $(0.39) 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 $841 million and decreased net earnings by approximately $0.32 per diluted share in 2015 compared with 2014.
Click here to view the full release including financial tables.
