Auto parts maker BorgWarner posted a quarterly loss on Thursday as vehicle production plunged amid a deep recession, Reuters reported.
The company posted a first-quarter net loss of $7 million, or 6 cents per share, compared with earnings of $88.7 million, or 75 cents per share, a year earlier.
Excluding items such as a gain related to the closure from a plant, BorgWarner said it lost 12 cents a share in the quarter.
Revenue fell 45 percent to $819.5 million in the quarter.
“BorgWarner distinguished itself from many industry peers by continuing to generate positive cash flow from operations in the first quarter,” said Timothy Manganello, Chairman and CEO. “Our cash on hand and cash generated in the quarter allowed us to repay $136.7 million of public debt that matured in February. In addition we have strengthened our financial structure by executing a very successful convertible bond offering and addressing our revolving credit facility.”
“Further, the restructuring actions we took in 2008, while difficult, have already begun to yield positive financial results,” he continued. “We also continued to make structural cost adjustments during the first quarter to improve operating efficiency, and to address profitability and cash flow. Special attention has been given to Drivetrain Group profitability where disappointing first quarter results were caused by declining volumes, European employee costs tied to operational issues and dual clutch growth-related costs. Going forward, the Drivetrain Group will benefit from the previously announced closing of the Muncie, Ind., plant and operational improvements in Europe.”
