Borg Warner’s (BWA) Third Quarter Results Show Loss, Outlook For 2008 Revised

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08:50:50 am on October 29, 2008

Borg Warner released its 3rd quarter results today, and the earnings report shows that the economic downturn has affected the company’s business. Compared to a year ago, third quarter sales stayed the same at $1,316.9 million. US GAAP earnings were a loss of $1.12 per diluted share, but this is largely because of one-time items. Excluding those one time charges, earnings would have been 44 cents per share. The company has also revised its estimated earnings based on these results, from $2.80-2.95 per diluted share down to $2.25-$2.35 per diluted share excluding all one-time charges.

Tim Manganello, Chairman and CEO, commented on the results:

While we continued to generate growth from our international operations, the crisis in the financial sector and deteriorating global economic conditions negatively impacted our performance. We expect the unprecedented current economic environment to continue to affect our near-term results and create difficult conditions through 2009. However, we are responding swiftly to these challenges, having expanded our North American restructuring program during the third quarter and initiating actions in Europe.

“We have successfully managed through difficult market environments before. The underlying fundamentals of our business remain strong and our financial structure is sound. We expect to continue to outpace the growth of the auto industry and to strengthen our competitive position through our focus on fuel-efficient technologies, our diversified customer base, a strong geographic presence, and our robust pipeline of new business. We have already taken actions, and will take any necessary additional actions, to successfully navigate through this difficult period and meet the future needs of customers for BorgWarner powertrain technologies.”

 

 
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