AUBURN HILLS, Mich.,
Jan. 11, 2011 /PRNewswire/ --
BorgWarner Inc. (NYSE: BWA) today provided 2011 earnings guidance
of $3.85 to $4.15 per diluted share,
which implies earnings growth of 35% to 40% as compared to 2010
earnings guidance of $2.85 to $2.95
per diluted share.
"In 2011, we expect another record year for sales and earnings,"
said Tim Manganello, BorgWarner
Chairman and CEO. "Robust growth in global vehicle production is
expected in 2011, and we expect our sales growth to significantly
outpace the market. As market demand for efficient powertrains
continues to accelerate, adoption of our product technologies that
improve fuel economy, emissions and performance, continues to
accelerate as well."
BorgWarner's strong backlog of net new business is expected to
drive sales growth of 16% to 20% in 2011 compared with 2010 while
global light vehicle production is expected to grow 6% during the
same period. From a regional perspective, light vehicle production
is expected to be approximately 13 million units in North America, 19 million units in
Europe and 16 million units in
China. The impact of foreign
currencies in 2011 versus 2010 is expected to be minimal.
The company expects 2011 operating margins to be 10.5% or
better, which is higher than its historical operating margin
guidance range of 8.5% to 9.0%. The expectation of improved margins
can be largely attributed to restructuring actions taken in 2008
and 2009, incremental income from higher sales and an ongoing focus
on cost reductions. These positives are expected to more than
offset the costs of global growth, higher raw material costs and
other inflationary cost pressures.
Today, at approximately 3:00pm ET,
the company will webcast its presentation at the Deutsche Bank
Global Auto Industry Conference in Detroit, Michigan, which will include a
discussion of its guidance. The webcast can be accessed at:
http://www.borgwarner.com/invest/webcasts.shtml.
Auburn Hills, Michigan-based
BorgWarner Inc. (NYSE: BWA) is a product leader in highly
engineered components and systems for vehicle powertrain
applications worldwide. The company operates manufacturing and
technical facilities in 57 locations in 17
countries. Customers include VW/Audi, Ford, Toyota,
Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler,
Fiat, BMW, Honda, Deere & Company, PSA, and MAN. The Internet
address for BorgWarner is: http://www.borgwarner.com.
Additional Important Information
Statements contained in this news release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. Words
such as "outlook", "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements are subject to
risks and uncertainties, many of which are difficult to predict and
generally beyond our control, that could cause actual results to
differ materially from those expressed, projected or implied in or
by the forward-looking statements. Such risks and
uncertainties include: fluctuations in domestic or foreign vehicle
production, the continued use of outside suppliers, fluctuations in
demand for vehicles containing our products, changes in general
economic conditions, and other risks detailed in our filings with
the Securities and Exchange Commission, including the Risk Factors,
identified in our most recently filed Annual Report on Form
10-K. We do not undertake any obligation to update any
forward-looking statements.
SOURCE BorgWarner Inc.