AUBURN
HILLS, Mich. — BorgWarner reported second quarter 2010 U.S. GAAP
earnings of $0.68 per diluted share. Excluding non-recurring items in
both periods, earnings were $0.78 per diluted share compared with a net
loss of $(0.05) per diluted share a year ago. Sales were up 55.2
percent from second quarter 2009 as growing demand for its
fuel-efficient technologies drove the global powertrain systems
supplier’s strong results.
Second quarter highlights:
•Sales were $1.421 billion, up 55.2 percent from second quarter 2009.
•U.S.
GAAP earnings were $0.68 per diluted share. For comparison with other
periods, second quarter 2010 earnings were $0.78 per diluted share
excluding non-recurring items.
Non-recurring items included a $28
million environmental litigation settlement, partially offset by an $8
million equity investment gain.
•Operating income was $117.3
million, on a reported basis. Excluding non-recurring items, operating
income was $137.3 million, or 9.7 percent of sales.
•The company repurchased approximately 4.1 million shares of its common stock.
Net debt to capital ratio at the end of the quarter was 27.5 percent.
“Growing
demand for our leading-edge powertrain products drove our second
quarter results,” said Timothy Manganello, chairman and CEO of
BorgWarner. “Our sales were up 55 percent in second quarter 2010
compared with second quarter 2009, while global vehicle production was
up 29 percent. The primary driver of our out-performance was new
business growth as our product technology continued to penetrate the
global market. Favorable macroeconomic trends, such as the continued
volume shift in Europe toward vehicles with higher BorgWarner content,
including diesels, also boosted results.”