BorgWarner sees EV business to grow at least 72% in 2023
(Reuters) - BorgWarner Inc said on Thursday it expects sales from its electric vehicle (EV) business to grow at least 72% in 2023 as the U.S. auto supplier increasingly shifts its focus toward EV makers.
The company, which makes products including turbochargers and battery heaters, forecast sales for its electric supply unit to be in the range of $1.5 billion to $1.8 billion in 2023, compared with $870 million in 2022.
BorgWarner in December announced plans to spin-off its fuel systems and aftermarket units to focus solely on air management and e-propulsion & drivetrain units.
The company, which supplies to automakers including General Motors Co and Ford Motor Co, aims to meet or even exceed its target of 25% of revenue from EVs by 2025.
Robust EV production also helped BorgWarner's fourth-quarter results to beat analysts' estimates, according to Refinitiv data.
The company's sales were at $4.1 billion, compared with estimates of $3.90 billion.
On an adjusted basis, the company's net income was $1.26 per share, compared with estimates of $1.08 per share.
The Michigan-based company also expects net sales in the range of $16.7 billion to $17.5 billion for 2023, compared with estimates of $16.82 billion. It forecast adjusted net earnings of $4.50 to $5.00 per diluted share, compared with expectations of $4.92 per share.
(Reporting by Raechel Thankam Job; Editing by Shilpi Majumdar)