BorgWarner’s third quarter operating income and sales edged up as it saw growth in its drivetrain business.
The supplier reported net income of $111 million, a drop of 43 percent from the year-ago period. Operating income rose 2.9 percent to $284 million.
Revenue during the quarter came in at $2.53 billion, up 1.7 percent.
The growth in sales was driven by the supplier’s drivetrain segment, which reported sales of $1 billion in the third quarter, up 8.3 percent from the same quarter last year. The gains were offset by lower sales in its engine segment, which reported a 2.5 percent decline, to $1.48 billion, during the fourth quarter.
BorgWarner is forecasting fourth-quarter revenue in the range of $3.46 billion to $3.61 billion, reflecting $950 million to $1 billion in added sales from an acquisition of Delphi Technologies, which closed this month.
The guidance assumes no additional production disruptions arising from COVID-19.
For all of 2020, the company expects revenue to tally between $9.7 billion and $9.85 billion, which implies a year-over-year decrease in organic sales of 12.5 percent to 13.5 percent.
Shares of BorgWarner closed Thursday’s trading down 3.3 percent to $35.44
BorgWarner, of Auburn Hills, Mich., ranks No. 25 on the Automotive News list of the top 100 global suppliers, with sales to automakers of $10.2 billion in 2019.
Automotive News contributed to this report.
