BorgWarner, an auto parts supplier, reported its third quarter 2024 financial results:
Key financial highlights: - Net sales of $3.45 billion, down 5% year-over-year due to declining vehicle production volumes - Net income of $234 million or $1.04 per diluted share, up significantly from $50 million or $0.21 per diluted share in Q3 2023 - Adjusted earnings per diluted share of $1.09, beating analyst estimates of $0.92 and up from $0.98 in Q3 2023 - Adjusted operating income margin of 10.1%, up from 9.6% in Q3 2023
Other key updates: - Increased full-year 2024 adjusted operating margin guidance to 9.8%-10.0%, up from prior 9.6%-9.8% guidance - Raised full-year 2024 adjusted EPS guidance to $4.15-$4.30 from $3.95-$4.15 previously - Lowered full-year 2024 net sales guidance to $14.0-$14.2 billion from $14.1-$14.4 billion due to lower market production outlook - Completed $400 million share repurchase program in Q3 2024 - Won new business awards including transfer case programs, high voltage coolant heaters in China/Korea/Japan
BorgWarner attributed the earnings beat and raised guidance to strong operational performance, cost controls, a lower tax rate, and share buybacks, despite headwinds from declining production volumes in its key automotive markets.
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