BorgWarner Reducing North American Workforce, Adjusts 2006 Guidance
In response to declining North American auto industry production, BorgWarner said today it is reducing its North American workforce by approximately 850 people, or 13 percent. The reductions, which will take place across 19 operations in the U.S., Canada and Mexico, are being driven by recent customer volume decreases and restructurings, the company said. The company expects this measure to be substantially completed by the end of October.
BorgWarner Launches Series of Fans Offering Increased Efficiency for Commercial, Off-Highway Markets
BorgWarner Thermal Systems has announced a new series of fans, called the "X" Series, which the company says offer better efficiency and enhanced performance for commercial vehicle and off-highway applications. The 9- and 11-blade polymer fans can increase cooling capacity by as much as four degrees Fahrenheit at a 7 percent higher efficiency than current products, according to the company.
BorgWarner Posts Strong Quarter; Raises 2006 Guidance
BorgWarner second quarter sales and income showed strong growth over last year, driven by the demand for fuel-efficient engine and drivetrain technology around the world. Earnings of $1.21 per diluted share, which included (4 cents) per diluted share related to the implementation of FAS 123( R ). Record sales of $1,169 million, up 5 percent versus second quarter 2005. Sales outside of the U.S. grew 12 percent over second quarter 2005. Operating income margin of 9.2 percent. On a comparable non-U.S. GAAP basis, earnings increased 11 percent in the quarter. The company revised its 2006 full year guidance range to $4.35 to $4.60 per diluted share.
BorgWarner Reports Record Sales in the First Quarter
BorgWarner posted solid results for the first quarter of 2006. “Despite the uncertainty facing the industry, BorgWarner continues to deliver,” said Tim Manganello, chairman and CEO. “Our results were driven by our technology that is targeted at improvements in fuel economy, emissions reduction and vehicle performance, the fastest growing parts of the market.
BorgWarner Expands Chinese Operations
BorgWarner has opened a new operation in Ningbo, China, for the assembly of turbochargers and transmission solenoids. The manufacturing facility is the first of several operations planned for a campus that comprises BorgWarner Automotive Components (Ningbo) Co., Ltd., the company’s wholly foreign-owned enterprise in the Ningbo Yinzhou industrial zone. A new office building there houses employees of BorgWarner Turbo & Emissions Systems, BorgWarner Morse TEC and BorgWarner Transmission Systems, as well as a shared services group of finance, information technology and human resources professionals who will support all of BorgWarner’s business units in China.
BorgWarner Appoints Thomas Stallkamp to Board of Directors
Thomas Stallkamp has been appointed to the BorgWarner Board of Directors. Stallkamp is an Industrial Partner with Ripplewood Holdings, LLC, a private equity firm in New York, and is founder and principal of Collaborative Management, LLC, a private business consulting firm. From 2000 to 2004, he was CEO of MSX International, a business outsourcing firm. Prior to becoming vice chairman of DaimlerChrysler Corp. in 1999, Stallkamp was its president and a member of its board of management. During close to 20 years at Chrysler, he helped lead the company to new stability and growth in the uncommonly competitive automotive industry.
BorgWarner Provides 2006 Earnings Guidance
BorgWarner has provided 2006 earnings guidance of $4.22 to $4.57 per diluted share on a U.S. GAAP basis, which includes (16 cents) to (18 cents) per diluted share negative impact of the implementation of FAS 123(R) and (12 cents) to (25 cents) per diluted share negative impact of weaker foreign currencies. Excluding the implementation of FAS 123(R) and the impact of currency, earnings growth is expected to be in line with BorgWarner historical growth rates of approximately 10 percent.
BorgWarner Supplies Eight of Ward’s ’10 Best Engines 2006′
Eight of the “10 Best Engines 2006” selected by Ward’s Auto World are equipped with systems and components from the BorgWarner Engine Group, according to the parts maker. Nominations for the award are limited to engines that are available in a regular-production vehicle available for sale in the current calendar or model year, and are fitted in a passenger vehicle with a total base price of no more than $52,500.
BorgWarner TorqTransfer Systems Receives Second South Carolina Manufacturing Award
BorgWarner TorqTransfer Systems in Seneca, SC, has been named Manufacturer of the Year by the South Carolina Chamber of Commerce. The company also received this award in 2002. BorgWarner’s Seneca facility is the center of expertise for the company’s front-wheel/all-wheel drive production, including InterActive Torque Management systems that were introduced on the Acura MDX and followed on the Honda Pilot and Ridgeline.
BorgWarner All-Wheel Drive Transfer Case System to Power New Audi Q7
BorgWarner’s all- wheel drive transfer case system will be standard on the new Audi Q7, a luxury performance SUV scheduled to debut in 2006.