Sector: Consumer Discretionary|Industry: Auto Parts|Market Cap: $7.02B|Employees: 40K
BorgWarner Inc., together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging. The company provides power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. It sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.
Net sales decreased by $80 million, or 2%, to $3,515 million, primarily due to $85 million negative impact from foreign currency fluctuations and a 4% decrease in weighted average market production. However, favorable volume, mix, and net new business partially offset the decline, increasing sales by approximately $5 million.
Gross profit margin increased to 18.2% from 17.9% in the prior year, despite the decrease in net sales. This improvement was primarily driven by purchasing savings and higher sales volume, mix, and net new business, which decreased cost of sales by approximately $13 million.
Net earnings decreased to $171 million from $221 million in the prior year. This decrease was primarily due to increased operating expenses, including restructuring expenses of $31 million and impairment charges of $39 million, partially offset by a decrease in selling, general, and administrative expenses.