BorgWarner Inc (BWA) Reports 12% Increase in Q3 2023 Net Sales
BorgWarner Inc (NYSE:BWA) reports Q3 2023 net sales of $3,622 million, a 12% increase compared to Q3 2022.
Net earnings for Q3 2023 were $87 million, or $0.37 per diluted share.
eProduct sales for 2023 are expected to be between $2.0 billion and $2.1 billion.
Full-year net sales for 2023 are expected to be in the range of $14.1 billion to $14.3 billion.
On November 2, 2023, BorgWarner Inc (NYSE:BWA) released its third-quarter earnings report. The company reported a 12% increase in net sales, reaching $3,622 million compared to $3,226 million in the third quarter of 2022. The increase in sales was primarily due to increased demand for the company's products and recoveries from the company's customers of material cost inflation.
Financial Highlights
BorgWarner Inc (NYSE:BWA) reported U.S. GAAP net earnings of $0.37 per diluted share. Excluding $(0.61) per diluted share related to non-comparable items, adjusted net earnings were $0.98 per diluted share. The company generated $221 million in net cash from operating activities and a free cash flow of $36 million.
Adjusted net earnings per diluted share for the third quarter 2023 were $0.98, up from adjusted net earnings per diluted share of $0.80 for the third quarter 2022. The increase in adjusted net earnings was primarily due to the benefit of higher sales (including customer recoveries), partially offset by higher input costs due to inflation.
Future Outlook
For the full year 2023, BorgWarner Inc (NYSE:BWA) expects net sales to be in the range of $14.1 billion to $14.3 billion, compared with 2022 sales of approximately $12.6 billion. This implies a year-over-year increase in organic sales of 12% to 14%. Net earnings are expected to be within a range of $2.65 to $2.81 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $3.60 to $3.80 per diluted share.
eProduct Sales
BorgWarner expects its 2023 eProduct sales to be $2.0 billion to $2.1 billion, up from approximately $1.5 billion in 2022. The company has signed several agreements with major OEMs to supply its eProducts, marking significant business growth in this area.
Environmental Commitment
BorgWarner announced that the Science Based Targets initiative (SBTi) has validated its targets to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions 85% by 2030 from a 2021 base year and to reduce absolute Scope 3 GHG emissions 25% by 2030 from a 2021 base year.
Explore the complete 8-K earnings release (here) from BorgWarner Inc for further details.
This article first appeared on GuruFocus.
