BorgWarner Enters Into Crystal Springs Settlement, Revises 2005 Expectations
BorgWarner Inc.has entered into a settlement regarding approximately 90 percent of claims related to previously disclosed alleged environmental contamination from a Kuhlman Electric Corporation (KEC) plant site in Crystal Springs, MI. The contamination predates BorgWarner’s purchase of Kuhlman Corporation, the former parent company of KEC. BorgWarner and other defendants will pay up to $39 million in three equal installments ending on January 2, 2006.
BorgWarner Names New President and GM, BorgWarner Transmission Systems; New Technology VP
BorgWarner has named two executives to new posts. Dr. Bernd Matthes has been named president and general manager, BorgWarner Transmission Systems, succeeding Mark Perlick, who has been named to the newly created position of vice president of technology for BorgWarner.
Delphi Wins 39th BorgWarner Louis Schwitzer Award
Delphi was presented with the 39th annual BorgWarner Louis Schwitzer Award on May 20 for its earpiece sensor system. The Louis Schwitzer Award, named after the dynamic automotive pioneer, has been presented annually in conjunction with the Indianapolis 500 since 1967. It recognizes individuals with the courage and conviction to explore and develop new concepts in auto racing technology.
BorgWarner in Right Place to Compete
BorgWarner Inc., the new auto supplier on the block in Auburn Hills, Mich., has a competitive edge that hasn’t gone unnoticed on Wall Street. While some automotive-related stocks have seen double-digit declines in the past year, BorgWarner has seen double-digit gains. And, even with the difficulties faced by auto stocks, BorgWarner has continued to get favorable marks from Wall Street analysts.
GDX Automotive to Acquire Vibration Damper Business from BorgWarner
GDX Automotive has signed a definitive agreement to purchase BorgWarner’s vibration damper business. The acquisition marks GDX’s re-entry into the anti-vibration components business in North America. The company said the acquisition will provide a platform to grow the company’s current European molded rubber and rubber-to-metal product offerings.
BorgWarner Reports 2004 Earnings
BorgWarner has reported 2004 earnings of $3.86 per share on sales of $3.5 billion. The company reiterated its 2005 earnings expectations in a range of $4.30 to $4.55 per share, which includes assumptions about the company’s Beru acquisition in a range of 15 cents to 30 cents per share, and expectations of $4.15 to $4.25 per share on the company’s base business as a comparison to 2004 expectations.
BorgWarner Buys Majority Stake in Beru AG; William Cline to Lead Acquisition Team
In a deal first announced in November 2004, BorgWarner has completed the purchase of approximately 62 percent of the outstanding shares of German-based Beru AG from its major shareholders, The Carlyle Group and a group of family shareholders. The sale, made as a cash transaction, totaled approximately $490 million. BorgWarner has tapped William (Skip) Cline to lead the BorgWarner task force for the Beru acquisition and provide coordination between the two companies. He has been named vice president, acquisition coordination and special projects.
BorgWarner Expands China Presence With New Shanghai Office
In what it described as a reflection of China’s significance to the company, BorgWarner is opening an office in Shanghai, which will include representatives from BorgWarner’s five business units and corporate staff.
BorgWarner Names David Brown to Board of Directors
David Brown, president and CEO of Owens Corning, has been appointed to the BorgWarner board of directors. Brown joined Owens Corning in a sales and marketing capacity in 1978 and held a variety of positions with the company before being named president and CEO in April 2002. Owens Corning is a $5 billion world leader in building materials and composite systems and solutions. The company operates in more than 300 locations globally.
BorgWarner Says Higher Sales Expected
BorgWarner said it expects products that make engines more fuel efficient will raise sales by $1.4 billion in the next three years. Turbochargers, engine timing systems and parts that control emissions will account for 66 percent of the new business. Four- and all-wheel-drive systems will account for the rest.