Q1 2024 Borgwarner Inc Earnings Call Transcript
Key Points
- BorgWarner Inc (BWA) reported a strong first quarter with approximately $3.6 billion in sales and 7% organic growth despite a modest industry decline.
- The company achieved a 9.4% margin due to strong incremental performance on an all-in basis.
- BorgWarner Inc (BWA) secured multiple new eProduct awards, demonstrating continued leadership in electric vehicle technology.
- The company efficiently deployed capital by repurchasing $100 million of stock and received an increased share repurchase authorization of $500 million.
- BorgWarner Inc (BWA) is well-positioned for various electrification adoption scenarios, supporting both combustion and electric powertrains with its diverse product portfolio.
- The company faces risks and uncertainties as detailed in their 10-K, which could lead to actual results differing significantly.
- Foreign exchange rates posed a headwind, decreasing sales by almost 1% or $32 million year-over-year.
- The net impact of M&A was a $12 million drag on operating income year-over-year.
- Free cash flow from continuing operations was a usage of $308 million during the first quarter, higher than the previous year due to timing of customer collections and tax payments.
- The company's full year guidance assumes a sales headwind from weaker foreign currencies of $100 million compared to 2023.
Good morning. My name is Britney, and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2024 First Quarter Results Conference Call.
(Operator Instructions) I would now like to turn the call over to Patrick Nolan, Vice President of Relations. Mr. Nolan, you may begin your conference.
Thank you, Britney. Good morning, everyone, and 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 home page 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 results may differ significantly from the matters
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