BorgWarner Cuts FY23 Earnings, Sales View Below Market - Update

(RTTNews) - Automotive supplier and eMobility firm BorgWarner Inc. (BWA), while reporting weak profit and higher revenues in the second quarter, on Wednesday trimmed its forecast for fiscal 2023.

For the year, the company now expects net earnings from continuing operations within a range of $2.58 to $2.75 per share.

Adjusted net earnings from continuing operations are expected to be within a range of $3.50 to $3.85 per share.

The company previously expected net earnings of $3.87 to $4.24 per share and adjusted earnings of $4.60 to $5.15 per share.

On average, 17 analysts polled by Thomson Reuters expect earnings of $4.49 per share for the year. Analysts' estimates typically exclude special items.

Net sales for 2023 are expected to be in the range of $14.2 billion to $14.6 billion, compared with 2022 sales of approximately $12.6 billion. This implies a year-over-year increase in organic sales of 13 percent to 16 percent. The previous outlook was sales of $17.10 billion to $17.90 billion.

The Street is looking for sales of $16.06 billion for the year.

In the second quarter, Borg Warner's earnings decreased from the same period last year but beat the Street estimates.

The company's bottom line came in at $204 million, or $0.87 per share. This compares with $216 million, or $0.91 per share, in last year's second quarter.

Excluding items, Borg Warner Inc. reported adjusted earnings of $1.35 per share for the period. Analysts expected the company to earn $1.10 per share.

The company's revenue for the quarter rose 20.2 percent to $4.52 billion from $3.76 billion last year.

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