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BorgWarner Reports Second Quarter 2021 U.S. GAAP Net Earnings of $1.03 Per Diluted Share, or $1.08 Per Diluted Share Excluding Non-Comparable Items

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AUBURN HILLS, Mich., Aug. 4, 2021 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today reported second quarter results.

BorgWarner Logo (PRNewsfoto/BorgWarner)
BorgWarner Logo (PRNewsfoto/BorgWarner)

Second Quarter Highlights:

  • U.S. GAAP net sales of $3,758 million, up 164% compared with second quarter 2020.

  • U.S. GAAP net earnings of $1.03 per diluted share.

  • U.S. GAAP operating income of $317 million, or 8.4% of net sales.

  • Net cash provided by operating activities of $280 million.

Financial Results:
The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company's ongoing operations, and related tax effects.


Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Earnings (loss) per diluted share

$

1.03



$

(0.47)



$

1.30



$

0.15










Non-comparable items:








Restructuring expense

0.19



0.15



0.31



0.21


Merger, acquisition and divestiture expense

0.06



0.10



0.10



0.20


Loss on sale

0.03





0.03




Asset impairments



0.08





0.08


Net gain on insurance recovery for property damage



(0.02)





(0.02)


Unrealized loss on equity securities

0.01





0.88



0.04


Loss on debt extinguishment

0.06





0.06




Delayed draw term loan cancellation



0.01





0.01


Tax adjustments

(0.30)



0.01



(0.38)



(0.05)










Adjusted earnings (loss) per diluted share

$

1.08



$

(0.14)



$

2.30



$

0.62


Net sales were $3,758 million for the second quarter 2021, up 164% from $1,426 million for the second quarter 2020, due to the recovery of global markets from the negative effects of COVID-19 on 2020 production, the acquisition of Delphi Technologies and increased demand for the Company's products. Net earnings for the second quarter 2021 were $247 million, or $1.03 per diluted share, compared with a net loss of $(98) million, or $(0.47) per diluted share, for the second quarter 2020. Adjusted net earnings per diluted share for the second quarter 2021 were $1.08, up from an adjusted net loss per diluted share of $(0.14) for the second quarter 2020. Adjusted net earnings for the second quarter 2021 excluded net non-comparable items of $(0.05) per diluted share. Adjusted net loss for the second quarter 2020 excluded net non-comparable items of $(0.33) per diluted share. These items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings was primarily due to the impact of higher sales, and earnings from the acquisition of Delphi Technologies. The impact of foreign currencies increased net sales by approximately $217 million and increased adjusted operating income by approximately $30 million for second quarter 2021, compared with the second quarter 2020.

For the first six months of 2021, net sales were $7,767 million, up 110% from $3,705 million for the first six months of 2020, due to the recovery of global markets from the negative effects of COVID-19 on 2020 production, the acquisition of Delphi Technologies and increased demand for the Company's products. Net earnings for the first six months of 2021 were $312 million, or $1.30 per diluted share, compared with $31 million, or $0.15 per diluted share, for the first six months of 2020. Adjusted net earnings per share for the first six months of 2021 were $2.30, up from $0.62 for the first six months of 2020. Adjusted net earnings for the first six months of 2021 excluded net non-comparable items of $(1.00) per diluted share. Adjusted net earnings for the first six months of 2020 excluded net non-comparable items of $(0.47) per diluted share. These items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in net earnings was primarily due to the impact of higher sales, and earnings from the acquisition of Delphi Technologies. The impact of foreign currencies increased net sales by approximately $411 million and increased net earnings by approximately $55 million for the first six months of 2021, compared with the first six months of 2020.

Net cash provided by operating activities was $622 million for the first six months of 2021, compared with $327 million for the first six months of 2020. Net cash used in investing activities increased to $1,099 million during the first six months of 2021 from $147 million during the first six months of 2020. This increase in cash used in investing activities was primarily due to cash outflows related to the 2021 acquisition of AKASOL and higher capital expenditures. Compared with the end of 2020, balance sheet debt at the end of the second quarter 2021 increased $574 million, while cash and cash equivalents decreased by $97 million.

Air Management Segment Results: The Air Management segment net sales were $1,854 million during the second quarter 2021, compared with $826 million during the second quarter 2020. Excluding the impact of foreign currencies but including the estimated growth in Delphi Technologies-related revenue over pro forma 2020 Delphi Technologies revenue, organic sales were up 82% from the prior year. Adjusted earnings before interest, income taxes and non-controlling interest ("Adj. EBIT") were $277 million, or 14.9% of sales, during the second quarter 2021, compared to $28 million, or 3.4% of sales, in the prior year. The increase in Adj. EBIT was primarily due to the impact of higher sales and savings arising from the Company's restructuring initiatives.

e-Propulsion & Drivetrain Segment Results: e-Propulsion & Drivetrain segment net sales were $1,337 million during the second quarter 2021, compared with $607 million during the second quarter 2020. Excluding the impact of foreign currencies but including the estimated growth in Delphi Technologies-related revenue over pro forma 2020 Delphi Technologies revenue, organic sales were up 68% from the prior year. Adj. EBIT was $132 million, or 9.9% of sales, during the second quarter 2021, compared to $1 million, or 0.2% of sales, in the prior year. The increase in Adj. EBIT was primarily due to the impact of higher sales.

Fuel Injection Segment Results: The Fuel Injection segment's net sales and Adj. EBIT in the second quarter 2021 were $480 million and $38 million, respectively. Excluding the impact of foreign currencies but including the estimated growth in Delphi Technologies-related revenue over pro forma 2020 Delphi Technologies revenue, organic sales were up 78%. The Adj. EBIT margin was 7.9% in the second quarter 2021. This is a new segment following the Delphi Technologies acquisition.

Aftermarket Segment Results: The Aftermarket segment's net sales and Adj. EBIT in the second quarter 2021 were $226 million and $32 million, respectively. Excluding the impact of foreign currencies but including the estimated growth in Delphi Technologies-related revenue over pro forma 2020 Delphi Technologies revenue, organic sales were up 69%. The Adj. EBIT margin was 14.2% in the second quarter 2021. This is a new segment following the Delphi Technologies acquisition.

Full Year 2021 Guidance: For the full-year 2021, net sales are expected to be in the range of $15.2 billion to $15.6 billion, under the assumption that there are no additional production disruptions arising from COVID-19. This implies a year-over-year increase in organic sales of 14% to 17%. The Company expects its weighted light and commercial vehicle markets to increase in the range of approximately 8.5% to 11.0% in 2021. The acquisition of AKASOL AG is expected to increase year-over-year sales by approximately $75 million. Foreign currencies are expected to result in a year-over-year increase in sales of approximately $520 million primarily due to the strengthening of the Euro, Chinese Renminbi and Korean Won against the U.S. dollar.

Operating margin for the full year is expected to be in the range of 8.7% to 9.3%. Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 10.2% to 10.5%. Net earnings for the full year are expected to be within a range of $2.80 to $3.21 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $4.15 to $4.40 per diluted share. Full-year operating cash flow is expected to be in the range of $1,525 million to $1,675 million, while free cash flow is expected to be in the range of $800 million to $900 million.

At 9:00 a.m. ET today, a brief conference call concerning second quarter 2021 results and guidance will be webcast at: http://www.borgwarner.com/en/Investors/default.aspx. Additionally, an earnings call presentation will be available at http://www.borgwarner.com/en/Investors/default.aspx.

BorgWarner Inc. (NYSE: BWA) is a global product leader in delivering innovative and sustainable mobility solutions for the vehicle market. Building on its original equipment expertise, BorgWarner also brings market leading product and service solutions to the global aftermarket. With manufacturing and technical facilities in 96 locations in 23 countries, the company employs approximately 50,000 people worldwide. For more information, please visit borgwarner.com.

Forward-Looking Statements: This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2020 ("Form 10-K"), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: the difficulty in forecasting demand for electric vehicles and our EV revenue growth to 2030; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions; the ability to identify appropriate combustion portfolio businesses for disposition and consummate planned dispositions on acceptable terms; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly-changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID-19/coronavirus pandemic, including additional production disruptions; the failure to realize the expected benefits of the acquisition of Delphi Technologies PLC that the Company completed on October 1, 2020; the failure to realize the expected benefits of the acquisition of AKASOL AG that the Company completed on June 4, 2021 or a delay in the ability to realize those benefits; the failure to successfully execute on a timely basis our taking private strategy with respect to AKASOL; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to acquired businesses; our dependence on automotive and truck production, both of which are highly cyclical and subject to disruptions; our reliance on major OEM customers; commodities availability and pricing; supply disruptions impacting the Company or the Company's customers, such as the current shortage of semi-conductors that has impacted OEM customers and the Company; fluctuations in interest rates and foreign currency exchange rates; availability of credit; our dependence on key management; our dependence on information systems; the uncertainty of the global economic environment; the outcome of existing or any future legal proceedings, including litigation with respect to various claims; future changes in laws and regulations, including, by way of example, tariffs, in the countries in which we operate; impacts from any potential future acquisition or divestiture transactions; and the other risks, including, by way of example, pandemics and quarantines, noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors" in our most recently-filed Annual Report on Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this press release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

BorgWarner Inc.








Condensed Consolidated Statements of Operations (Unaudited)





(in millions, except per share amounts)








Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Net sales

$

3,758



$

1,426



$

7,767



$

3,705


Cost of sales

2,996



1,252



6,187



3,084


Gross profit

762



174



1,580



621


Gross margin

20.3

%


12.2

%


20.3

%


16.8

%









Selling, general and administrative expenses

364



184



741



397


Other operating expense, net

81



68



119



104


Operating income (loss)

317



(78)



720



120










Equity in affiliates' earnings, net of tax

(16)



(2)



(28)



(7)


Unrealized loss on equity securities

4





276



9


Interest income

(3)



(3)



(6)



(5)


Interest expense

42



18



63



30


Other postretirement income

(12)



(1)



(23)



(3)


Earnings (loss) before income taxes and noncontrolling interest

302



(90)



438



96










Provision (benefit) for income taxes

28



(6)



70



43


Net earnings (loss)

274



(84)



368



53










Net earnings attributable to noncontrolling interest, net of tax

27



14



56



22


Net earnings (loss) attributable to BorgWarner Inc.

$

247



$

(98)



$

312



$

31










Diluted earnings (loss) per share of common stock

$

1.03



$

(0.47)



$

1.30



$

0.15










Weighted average shares outstanding — diluted

239.6



206.0



239.0



206.4


BorgWarner Inc.








Net Sales by Reporting Segment (Unaudited)







(in millions)









Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Air Management

$

1,854



$

826



$

3,865



$

2,260


e-Propulsion & Drivetrain

1,337



607



2,803



1,467


Fuel Injection

480





955




Aftermarket

226





423




Inter-segment eliminations

(139)



(7)



(279)



(22)


Net sales

$

3,758



$

1,426



$

7,767



$

3,705










Adjusted Earnings Before Interest, Income Taxes and Noncontrolling Interest ("Adj. EBIT") (Unaudited)





(in millions)

















Three Months Ended June 30,


Six Months Ended June 30,


2021


2020


2021


2020

Air Management

$

277



$

28



$

599



$

236


e-Propulsion & Drivetrain

132



1



269



64


Fuel Injection

38





71




Aftermarket

32





53




Segment Adjusted EBIT

479



29



992



300


Corporate, including stock-based compensation

78



38



147



75


Restructuring expense

62



37



92



52


Merger, acquisition and divestiture expense

15



21



28



42


Loss on sale

7





7




Asset impairments



17





17


Net gain on insurance recovery for property damage



(6)



(2)



(6)


Equity in affiliates' earnings, net of tax

(16)



(2)



(28)



(7)


Unrealized loss on equity securities

4





276



9


Interest income

(3)



(3)



(6)



(5)


Interest expense

42



18



63



30


Other postretirement income

(12)



(1)



(23)



(3)


Earnings (loss) before income taxes and noncontrolling interest

302



(90)



438



96


Provision (benefit) for income taxes

28



(6)



70



43


Net earnings (loss)

274



(84)



368



53


Net earnings attributable to noncontrolling interest, net of tax

27



14



56



22


Net earnings (loss) attributable to BorgWarner Inc.

$

247



$

(98)



$

312



$

31


BorgWarner Inc.




Condensed Consolidated Balance Sheets (Unaudited)

(in millions)









June 30,
2021


December 31,
2020

ASSETS




Cash and cash equivalents

$

1,553



$

1,650


Restricted cash

15




Receivables, net

3,063



2,919


Inventories, net

1,567



1,286


Prepayments and other current assets

339



312


Total current assets

6,537



6,167






Property, plant and equipment, net

4,535



4,591


Other non-current assets

5,791



5,271


Total assets

$

16,863



$

16,029






LIABILITIES AND EQUITY




Notes payable and other short-term debt

$

13



$

49


Accounts payable

2,367



2,352


Other current liabilities

1,482



1,409


Total current liabilities

3,862



3,810






Long-term debt

4,348



3,738


Other non-current liabilities

1,631



1,757






Total BorgWarner Inc. stockholders' equity

6,649



6,428


Noncontrolling interest

373



296


Total equity

7,022



6,724


Total liabilities and equity

$

16,863



$

16,029


BorgWarner Inc.




Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)





Six Months Ended June 30,


2021


2020

OPERATING




Net cash provided by operating activities

$

622



$

327


INVESTING




Capital expenditures, including tooling outlays

(342)



(171)


Capital expenditures for damage to property, plant and equipment

...

(2)




Insurance proceeds received for damage to property, plant and equipment



22


Payments for businesses acquired, net of cash and restricted cash acquired

(759)



(2)


Proceeds from settlement of net investment hedges, net

11



6


Payments for investments in equity securities and other, net

(7)



(2)


Net cash used in investing activities

(1,099)

...

(147)






FINANCING




Net decrease in notes payable

(6)




Additions to debt

1,229



1,143


Payments for debt issuance costs

(10)



(10)


Repayments of debt, including current portion

(671)



(35)


Payments for stock-based compensation items

(14)



(13)


Purchase of noncontrolling interest

(33)




Dividends paid to BorgWarner stockholders

(81)



(70)


Dividends paid to noncontrolling stockholders

(5)



(16)


Net cash provided by financing activities

409



999


Effect of exchange rate changes on cash

(14)



(8)


Net (decrease) increase in cash, cash equivalents and restricted cash

(82)



1,171


Cash and cash equivalents at beginning of year

1,650



832


Cash, cash equivalents and restricted cash at end of period

$

1,568



$

2,003






Supplemental Information (Unaudited)




(in millions)





Six Months Ended June 30,


2021


2020

Depreciation and amortization

$

390



$

224


Non-GAAP Financial Measures
This press release contains information about BorgWarner's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures below and in the Financial Results table above. The provision of these comparable GAAP financial measures for 2021 is not intended to indicate that BorgWarner is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by BorgWarner may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company's ongoing operations, and related tax effects.

Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, including tooling outlays. It is useful to both management and investors in evaluating the Company's ability to service and repay its debt.

Organic Net Sales Change
The Company defines organic net sales changes as net sales change year over year excluding the estimated impact of foreign exchange (FX) and net M&A.

Adjusted Operating Income (loss) and Adjusted Operating Margin (Unaudited)






Three Months Ended June 30,


Six Months Ended June 30,

(in millions)

2021


2020


2021


2020

Net sales

$

3,758



$

1,426



$

7,767



$

3,705










Operating income (loss)

$

317



$

(78)



$

720



$

120


Operating margin

8.4

%


(5.5)

%


9.3

%


3.2

%









Non-comparable items:








Restructuring expense

$

62



$

37



$

92



$

52


Merger, acquisition and divestiture expense

15



21



28



42


Loss on sale

7





7




Asset impairments



17





17


Net gain on insurance recovery for property damage



(6)



(2)



(6)


Adjusted operating income (loss)

$

401



$

(9)



$

845



$

225


Adjusted operating margin

10.7

%


(0.6)

%


10.9

%


6.1

%



Free Cash Flow Reconciliation (Unaudited)









Three Months Ended June 30,


Six Months Ended June 30,

(in millions)

2021


2020


2021


2020

Net cash provided by operating activities

$

280



$

64



$

622



$

327


Capital expenditures, including tooling outlays

(147)



(54)



(342)



(171)


Free cash flow

$

133



$

10



$

280



$

156



Second Quarter 2021 Organic Net Sales Change (Unaudited)



(in millions)

Q2 2020 Net Sales


FX


Q2 2020 Delphi Technologies Pro Forma Impact


Market Impact, Pricing & Other


Q2 2021 Net Sales


Organic Net Sales Change

Air Management

$

826


$

105


$

135


$

788


$

1,854


82.0%

e-Propulsion & Drivetrain

607


68


150


512


1,337


67.6%

Fuel Injection


36


250


194


480


77.6%

Aftermarket


8


129


89


226


69.0%

Inter-segment eliminations

(7)



(36)


(96)


(139)


Total

$

1,426


$

217


$

628


$

1,487


$

3,758


72.4%

Year to Date 2021 Organic Net Sales Change (Unaudited)



(in millions)

Q2 2020 YTD Net Sales


FX


Q2 2020 YTD Delphi Technologies Pro Forma Impact


Market Impact, Pricing & Other


Q2 2021 YTD Net Sales


Organic Net Sales Change

Air Management

$

2,260



$

203


$

384


$

1,018


$

3,865


38.5%

e-Propulsion & Drivetrain

1,467



131


322


883


2,803


49.4%

Fuel Injection



65


661


229


955


34.6%

Aftermarket



12


303


108


423


35.6%

Inter-segment eliminations

(22)




(97)


(160)


(279)


Total

$

3,705


$

411


$

1,573


$

2,078


$

7,767


39.4%

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)


Full-Year 2021 Guidance

(in millions)

Low


High

Net sales

$

15,200



$

15,600






Operating income

1,317



1,452


Operating margin

8.7

%


9.3

%





Non-comparable items:




Restructuring expense

$

200



$

150


Merger, acquisition and divestiture expense

28



28


Loss on sale

7



7


Net gain on insurance recovery for property damage

(2)



(2)


Adjusted operating income

$

1,550



$

1,635


Adjusted operating margin

10.2

%


10.5

%

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)


Full-Year 2021 Guidance


Low


High

Earnings per Diluted Share

$

2.80



$

3.21






Non-comparable items:




Restructuring expense

0.66



0.50


Merger, acquisition and divestiture expense

0.10



0.10


Loss on sale

0.03



0.03


Loss on debt extinguishment

0.06



0.06


YTD 2021 unrealized loss on equity securities

0.88



0.88


Tax adjustments

(0.38)



(0.38)






Adjusted Earnings per Diluted Share

$

4.15



$

4.40


Free Cash Flow Guidance Reconciliation (Unaudited)







Full Year 2021 Guidance

(in millions)


Low


High

Net cash provided by operating activities


$

1,525


$

1,675

Capital expenditures, including tooling outlays


(725)


(775)

Free cash flow


$

800


$

900

Pro Forma Financial Information
On October 1, 2020 BorgWarner completed its acquisition of Delphi Technologies PLC (Delphi Technologies). The 2020 pro forma unaudited quarterly financial information included herein includes the pro forma combined results of BorgWarner and Delphi Technologies for periods prior to October 1, 2020. The pro forma financial information for the three months ended March 31, 2020 and June 30, 2020 has been derived from the unaudited consolidated financial statements included in BorgWarner's and Delphi Technologies' Quarterly Reports on Form 10-Q for the three and six months ended June 30, 2020. The pro forma financial information for the three months ended September 30, 2020 has been derived from the unaudited consolidated financial statements included in BorgWarner's Quarterly Report on Form 10-Q for the three months ended September 30, 2020 and from the books and records of Delphi Technologies for the same period. The pro forma financial information does not give effect to the transaction on periods prior to October 1, 2020 and is not necessarily indicative of either the actual consolidated results had the acquisition of Delphi Technologies occurred on January 1, 2020 or of future operating results.

Pro Forma Quarterly Net Sales and Adjusted Operating Income (Unaudited)











(in millions)

Pro forma Q1 2020


Pro forma Q2 2020


Pro forma Q3 2020


As Reported Q4 2020


Pro forma FY 2020

Air Management










Net sales

$

1,683


$

961


$

1,750


$

1,942


$

6,336

Adjusted EBIT

241


34


278


301


854

Adjusted EBIT Margin

14.3%


3.5%


15.9%


15.5%


13.5%











e-Propulsion & Drivetrain










Net sales

$

1,032


$

757


$

1,305


$

1,447


$

4,541

Adjusted EBIT

64


(4)


148


164


372

Adjusted EBIT Margin

6.2%


(0.5)%


11.3%


11.3%


8.2%











Fuel Injection










Net sales

$

411


$

250


$

410


$

479


$

1,550

Adjusted EBIT

20


(28)


31


39


62

Adjusted EBIT Margin

4.9%


(11.2)%


7.6%


8.1%


4.0%











Aftermarket










Net sales

$

174


$

129


$

195


$

194


$

692

Adjusted EBIT

15


6


18


22


61

Adjusted EBIT Margin

8.6%


4.7%


9.2%


11.3%


8.8%











Inter-segment eliminations

$

(76)


$

(43)


$

(72)


$

(136)


$

(327)

Corporate expenses

$

(66)


$

(60)


$

(79)


$

(78)


$

(283)











Total Company










Total net sales

$

3,224


$

2,054


$

3,588


$

3,926


$

12,792

Total adjusted operating income (loss)

274


(52)


396


448


1,066

Total adjusted operating income margin

8.5%


(2.5)%


11.0%


11.4%


8.3%











Key Definitions
The terms below are commonly used by management and investors in assessing ongoing financial performance.

Market: Light and commercial vehicle production weighted for BorgWarner's geographic exposure as estimated by BorgWarner.

Outgrowth: "Organic Net Sales Change" excluding Aftermarket segment vs. year-over-year change in "Market".

Cision
Cision

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SOURCE BorgWarner