This excerpt taken from the BWA 8-K filed Jul 31, 2008.
Comment and Outlook: “Our record second quarter performance, which was achieved despite rapidly declining conditions in the North American auto industry, reaffirms the benefits of our diversified customer base, focus on fuel efficient technologies and our broad geographic footprint,” said Tim Manganello, BorgWarner Chairman and CEO. “BorgWarner sales outside of the U.S. were up 13%, excluding the impact of currency, comparing favorably with non-U.S. vehicle production which was 6% higher. Conversely, our sales in the U.S. were down 17%, consistent with U.S. vehicle production which was down 18% during the quarter.
“We are taking proactive steps to maintain and enhance our global competitive advantage,” Manganello continued. “These steps include further restructuring our North American operations in the third quarter. Our decision was not made lightly or without regard for the interests of our employees, but was necessary to address what we view as a continuing, fundamental, permanent shift in the North American auto industry. By taking action now, we expect to successfully manage our business through an extremely difficult period and provide a solid base from which to address our U.S. customers’ growing needs for fuel efficient cars and trucks. Higher oil prices, while currently disruptive, highlight the critical need for fuel efficient technologies like ours.”
Commenting on the remainder of the year, Manganello said: “We are managing our global business in two distinct operating environments. In Europe and Asia, our businesses are expected to experience sustained growth. Conversely, in North America, our operations will remain focused on fuel efficiency and cost management. While we anticipate that the European automotive market will experience a slow down in the second half of 2008, we expect that demand for down-sized turbocharged gas and diesel engines and more efficient dual-clutch transmissions will continue to drive our above-average market growth. Our guidance balances North American schedule declines and global commodity pricing pressures with continued strength in other key markets.”
This excerpt taken from the BWA 8-K filed May 2, 2008.
Comment and Outlook: “The year got off to a strong start, with excellent results in Europe and Asia,” said Tim Manganello, Chairman and CEO. “Despite recession worries, we are seeing stable growth driven by our product technologies that improve fuel economy, lower emissions and provide better vehicle performance. Our sales outside of the U.S. were up 15%, excluding the impact of currency, compared with vehicle production outside of the U.S. that was up only 4%. Our sales in the U.S. declined 4% due to lower U.S. vehicle production, which was down 8%.”
Commenting on the remainder of the year, Manganello pointed to the Company’s reaffirmation of its 2008 earnings guidance in the range of $2.85 to $3.00 per diluted share, which implies earnings growth of 20% to 25% compared with 2007. “We expect 2008 to be another record year for BorgWarner,” he said. “Consumers want better fuel economy and reduced emissions in every region of the world. These needs are driving demand for BorgWarner’s leading powertrain technologies like turbochargers and dual-clutch transmission modules for which we are launching new programs and expanding capacity. The strength of the platforms we are on has allowed us to more than offset general vehicle schedule declines, and will enable our continued growth to outpace that of the industry in the future.”
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