Q3 2024 Borgwarner Inc Earnings Call Transcript
Key Points
- BorgWarner Inc (BWA) reported a strong adjusted operating margin of 10.1% for the third quarter, which was 50 basis points higher than the previous year.
- The company secured multiple new product awards, including high-voltage coolant heater business wins in Asia and turbochargers for GM's Corvette ZR1, demonstrating its strong market presence and product leadership.
- BorgWarner Inc (BWA) outperformed the market with a 5% decline in organic sales compared to a 6% decline in the market, showcasing its resilient technology-focused portfolio.
- The company completed its planned 2024 repurchase of $400 million of BorgWarner stock, reflecting strong cash flow and commitment to shareholder returns.
- BorgWarner Inc (BWA) increased its full-year margin and earnings guidance, highlighting confidence in its operational performance and cost control measures.
- BorgWarner Inc (BWA) experienced a 5% year-over-year decline in organic sales for the third quarter, reflecting challenging market conditions.
- The company's full-year sales guidance was reduced due to a lower market production outlook and modestly lower eProduct sales.
- The acquisition of Eldor resulted in a $14 million drag on operating income year-over-year, impacting profitability.
- The $24 million benefit from volume-related customer recoveries in the third quarter is a one-time item and not expected to recur.
- BorgWarner Inc (BWA) faces a volatile market environment, with anticipated 5% to 7% year-over-year decline in market production during the fourth quarter of 2024.
Good morning. My name is Connie, and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2024 third-quarter results conference call. (Operator Instructions)
I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.
Thank you, Connie, and good morning, everyone. Thank you for joining us today. We issued our earnings release earlier this morning. It's posted on our website, borgwarner.com, both on our homepage and on our Investor Relations homepage.
With regard to our Investor Relations calendar, we will be attending multiple conferences between now and our next earnings release. Please see the Events section of our Investor Relations homepage for a full list.
Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual
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