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BorgWarner Inc - Stock Quote BWA

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Morningstar's BorgWarner Inc Stock Analysis

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Headwinds Hit BorgWarner Q1 Results, Reduces 2022 Guidance; $73 FVE Unchanged

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

Narrow moat rated BorgWarner reported first-quarter earnings per share before special items, or EPS, of $1.05, beating the $0.86 FactSet consensus by $0.19, but $0.16 lower than the $1.21 reported last year. Due to the Ukraine crisis, chip crunch, and China COVID-19 lockdowns causing sporadic customer production, revenue declined 3% to $3.9 billion, compared with $4.0 billion reported a year ago. Organic revenue edged up 1%, outperforming a 7% drop in global light vehicle production weighted to BorgWarner’s customer base by 8 percentage points as new business launches offset the market decline. Top-line results also beat the consensus by 4%. We maintain our investment thesis that BorgWarner will increase revenue at above-market rates as its products reduce emissions and support vehicle electrification.

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BorgWarner Inc's Company Profile

Business Description

BorgWarner is a Tier I auto-parts supplier with four operating segments. The air management group makes turbochargers, e-boosters, e-turbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, powertrain sensors, cabin heaters, battery heaters, and battery charging. The e-propulsion and drivetrain group produces e-motors, power electronics, control modules, software, automatic transmission components, and torque management products. The two remaining operating segments are the eponymous fuel injector and aftermarket groups. The company's largest customers are Ford and Volkswagen at 10% and 9% of 2021 revenue, respectively. Geographically, Europe accounted for 35% of 2021 revenue, while Asia was 35% and North America was 29%.

Contact
3850 Hamlin Road
Auburn Hills, MI, 48326
T +1 248 754-9200
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Cyclical
Employees 49,300

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