Delaware | 1-12162 | 13-3404508 | ||
State or other jurisdiction of | Commission File No. | (I.R.S. Employer | ||
Incorporation or organization | Identification No.) |
3850 Hamlin Road, Auburn Hills, Michigan | 48326 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 9.01. | Financial Statements and Exhibits |
BORGWARNER INC. | |||
Date: January 13, 2017 | By: | /s/ John J. Gasparovic | |
Name: | John J. Gasparovic | ||
Its: | Secretary |
Immediate Release | |||
Contact | |||
Patrick Nolan | |||
248.754.0884 |
• | Net new business within a range of $410 million to $590 million in 2017, $460 million to $670 million in 2018 and $500 million to $700 million in 2019. |
• | Asia, the Americas and Europe are expected to account for approximately 40%, 39% and 21% of the total over the three-year period, respectively. |
◦ | Approximately 32% is expected in China. |
◦ | Approximately 25% is expected with the North American domestic OEMs. |
• | Approximately 62% from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems including variable cam timing devices and thermal systems. |
• | Approximately 38% from drivetrain-related products including all-wheel drive systems, the company’s fuel-efficient DualTronic® transmission technology, traditional automatic transmission products and rotating electrical components. |
• | Net sales of $8.81billion - $9.04 billion, implying organic sales growth of 3.5% to 6.0% compared with expected 2016 net sales of ~$9.05 billion. |
◦ | Foreign currencies are expected to lower sales by $320 million, due to the depreciation of the Euro, Yuan and Pound. |
◦ | The sale of the Remy light vehicle aftermarket business is expected to lower sales by ~$235 million. |
◦ | Excluding the impact of weaker foreign currencies and the Remy light vehicle aftermarket sale, net sales growth is expected to be 3.5% to 6.0%. |
• | Operating income as a percentage of net sales of 12.7% - 12.8% compared to 12.3% in 2016. |
◦ | The Remy light vehicle aftermarket sale is expected to increase operating income as a percentage of net sales by approximately 30 basis points. |
• | Net earnings of $3.35 to $3.45 per diluted share. |
◦ | Foreign currencies are expected to lower net earnings by $0.13. Excluding this impact, guidance implies a 7% to 10% on a constant currency basis. |
• | Effective tax rate of approximately 32%. |
• | Free cash flow within a range of $450 million to $500 million. |
• | Share repurchases of $100 million. |
• | Organic net sales growth of 2.5% to 6.5% compared with first quarter 2016 net sales of $2.27 billion. |
◦ | Foreign currencies are expected to lower sales by $60 million, or -2.7%. |
◦ | The Remy light vehicle aftermarket sale is lower revenue by $70MM. |
◦ | Excluding the impact of weaker foreign currencies and the Remy light vehicle aftermarket sale, net sales growth is expected to be 2.5% to 6.5%. |
• | Net earnings of $0.81 to $0.85 per diluted share. |
◦ | Higher corporate expenses, raw material timing and other costs are expected to impact Q1 EPS by $0.04. |