While the company is still conducting financial closing procedures for the fourth quarter and full year, BorgWarner Inc. (NYSE: BWA) today announced preliminary 2019 financial results and guidance for 2020.
Preliminary 2019 Results Highlights: Preliminary full-year 2019 sales approximated $10,168 million, down 3.4% compared with 2018. Excluding the approximated impact of foreign currencies and the net impact of acquisitions and divestitures, net sales were up 0.7% compared with 2018.
Preliminary full-year operating income approximated $1,303 million, or 12.8% of net sales compared with 11.3% in 2018. Excluding $71 million of net pretax income related to non-comparable items, adjusted operating income approximated $1,232 million. Excluding the impact of non-comparable items, adjusted operating income approximated 12.1% of net sales compared with 12.3% in 2018.
Preliminary full-year 2019 adjusted free cash flow approximated $692 million, compared with $580 million in 2018.
Full Year 2020 Guidance: The company has provided its initial 2020 full year guidance. This guidance is for BorgWarner as currently consolidated and excludes the potential impact from the acquisition of Delphi Technologies PLC, which BorgWarner is announcing today.
Net sales are expected to be in the range of $9,750 million to $10,080 million. This implies year-over-year organic sales change of approximately down 2.5% to up 0.5%. The company expects its blended light-vehicle market to decline in the range of 2.0% to 4.0% in 2020. Declining global commercial vehicle/off-highway industry volumes are expected to reduce sales by approximately $100 million year-over-year. Foreign currencies are expected to result in a year-over-year decrease in sales of $130 million, primarily due to the depreciation of the Euro, Chinese Renminbi and Korean Won against the U.S. dollar. The divestiture of the thermostat product line will decrease year-over-year sales by approximately $30 million.
Operating margin is expected to be in the range of 11.0% to 11.5%. Excluding the impact of noncomparable items, adjusted operating margin is expected to be in the range of 11.6% to 12.0%. Cash provided by operating activities is expected to be $1,250 million. Full year free cash flow is expected to be in the range of $675 million to $725 million.
Please click here to view the full press release.
SOURCE: BorgWarner
