BorgWarner Clocks 3% Sales Decline In Q1; Cuts FY22 Outlook

BorgWarner Inc BWA reported a first-quarter FY22 sales decline of 3% year-on-year to $3.87 billion, beating the consensus of $3.71 billion.
Net sales from the Air Management segment declined 3.97% Y/Y, and the e-Propulsion & Drivetrain Segment lost 5.2%.
Gross profit fell 8.3% to $750 million, and gross margin contracted 100 basis points to 19.4%.
The operating margin was 9.1%, and the operating income fell 12.6% Y/Y to $352 million.
BorgWarner held $1.5 billion in cash and equivalents as of March 31, 2022. Net cash provided by operating activities for the quarter amounted to $116 million.
Adjusted EPS of $1.05 beat the analyst consensus of $0.87.
The company's board recently declared a quarterly cash dividend of $0.17 per share, payable on June 15, 2022, to stockholders of record on June 1, 2022.
Outlook: BorgWarner sees FY22 sales of $15.5 billion - $16 billion (prior view $15.9 billion - $16.5 billion) versus the Street view of $15.85 billion.
The company expects FY22 adjusted EPS of $3.90 - $4.25 (previous view $4.15 - $4.60), against the consensus of $4.15.
It sees an FY22 operating margin of 8.5% – 9% (prior view 8.7% - 9.4%).
Price Action: BWA shares are trading higher by 0.03% at $38.15 in premarket on the last check Wednesday.

Earnings Calendar