BorgWarner Inc. has reported third quarter results.
Net sales were $2,479 million in third quarter 2018, up 2.6 percent from $2,416 million in third quarter 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, net sales were up 3.6 percent compared with third quarter 2017.
Net earnings in third quarter 2018 were $204 million, or 98 cents per diluted share, compared with $185 million, or 88 cents per diluted share in third quarter 2017. Net earnings in third quarter 2018 included non-comparable items of (2 cents) per diluted share. Net earnings in the third quarter 2017 included net non-comparable items of (8 cents) per diluted share.
The company said the impact of foreign currencies decreased net sales by approximately $44 million and decreased net earnings by approximately 2 cents per diluted share in third quarter 2018 compared with third quarter 2017. The impact of the acquisition of Sevcon increased net sales by $19 million in the third quarter 2018 compared with third quarter 2017.
For the first nine months of 2018, net sales were $7,957 million, up 10.3 percent from $7,213 million in the first nine months of 2017. Net earnings in the first nine months of 2018 were $701 million, or $3.34 per diluted share, compared with $586 million, or $2.77 per diluted share, in the first nine months of 2017.
Net earnings in the first nine months of 2018 included net non-comparable items of 6 cents per diluted share. Net earnings in the first nine months of 2017 included net non-comparable items of 4 cents per diluted share. The impact of foreign currencies increased net sales by approximately $268 million and increased net earnings by approximately 11 cents per diluted share in the first nine months of 2018 compared with the first nine months of 2017. The impact of the acquisition of Sevcon increased net sales by $57 million in the first nine months of 2018 compared with the first nine months of 2017.
Full Year 2018 Guidance
The company has reaffirmed its 2018 full year organic growth guidance. Full year net sales are expected to be in the range of $10.49 billion to $10.58 billion. This implies organic sales growth of approximately 4.5 percent to 5.5 percent or 500 to 600 basis points over the company’s light vehicle market exposure. Foreign currencies are expected to increase sales by $192 million, due to the appreciation of the Euro and Chinese Yuan. The acquisition of Sevcon will increase sales by approximately $57 million. Excluding the impact of non-comparable items, operating margin is expected to be in the range of 12.3 percent to 12.4 percent. Net earnings are expected to be within a range of $4.35 to $4.40 per diluted share, which is unchanged from prior guidance.
