Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How should we think about BorgWarner's margins moving forward, given the current performance? A: Craig Aaron, CFO, explained that the strong operational performance in the quarter was due to restructuring actions and cost controls. For the fourth quarter, they expect revenue to be down roughly 3%, with a mid-teens decremental conversion, aiming for a 9.6% margin at the midpoint of their guidance.
Q: Can you elaborate on the $24 million benefit for ePropulsion and its recurrence? A: Craig Aaron, CFO, clarified that the $24 million volume-related customer recoveries for ePropulsion is a one-time item and should not be expected to repeat in future quarters.
Q: With the new segment structure, can you discuss the growth and margin profile of the battery business? A: Frederic Lissalde, CEO, noted strong sales in Europe and efficient decremental performance. The business is expected to continue incrementing at mid-teens as it scales, with no current supply constraints.
Q: How is BorgWarner managing the potential for more customer recoveries due to EV program changes? A: Frederic Lissalde, CEO, stated that each case is specific, and BorgWarner focuses on flexibility in design and production to adapt to customer needs and market changes.
Q: Can you comment on the impact of hybrid demand on BorgWarner's foundational product segments? A: Frederic Lissalde, CEO, explained that advanced hybrid powertrains will utilize products from both the turbos and thermal technologies segment and the drivetrain and more systems segment, supporting growth in these areas.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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