BorgWarner's (BWA) Q3 Earnings & Revenues Top Estimates
Zacks Investment Research | Oct 30, 2019 09:26PM ET
BorgWarner Inc. (NYSE:BWA) delivered adjusted earnings of 96 cents per share in third-quarter 2019, beating the Zacks Consensus Estimate of 85 cents. This was mainly driven by revenue growth in the Drivetrain segment which amounted to $993 million, outpacing the Zacks Consensus Estimate of $964 million. However, the earnings per share came in lower than the $1 recorded in the year-ago quarter. Net income amounted to $194 million compared with the $204 million reported in the prior-year quarter.
BorgWarner’s net sales inched up 0.6% year over year to $2.49 billion, which beat the Zacks Consensus Estimate of $2.38 billion. The reported figure, however, fell nearly $66 million year over year, due to foreign currency fluctuations.
In the third quarter, operating income amounted to $276 million compared with the prior-year quarter’s figure of $278 million.
Segmental Performance
Net sales in the Engine segment fell to $1,514million fromthe prior-year quarter’s $1,516 million. Excluding impact of foreign-currency translation and divestiture of the thermostat product line, net sales went up4.6% year over year and adjusted EBIT (earnings before interest, income taxes and non-controlling interest) inched up 1.26% to $241 million. This was primarily aided by higher revenuesand the net impactof acquisitions and divestitures.
In the Drivetrain segment, net sales increased to $993 million from the $976 million reported in the prior-year quarter. Excluding impacts of foreign currencies, net sales were up 4.2% on a year-over-year basis and adjusted EBIT fell 7.4% to $100 million due to higher amount spent on research and development andstart-up costs for launches.
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