BorgWarner Inc. swung to a net loss of $98 million compared with a gain of $172 million in the year-earlier period as the ongoing COVID-19 pandemic disrupted its global production levels, the company said Wednesday.
BorgWarner joins several auto suppliers, including Adient and Tenneco, expected to release second-quarter reports this week.
The supplier of turbochargers and electric motors said revenue for the quarter fell 44 percent to $1.43 billion as a result of production slowdowns and shutdowns brought on by the pandemic. BorgWarner’s engine-segment sales tumbled 47 percent to $826 million, while drivetrain-segment net sales dropped about 39 percent to $607 million, the company said in a statement.
Shares of BorgWarner rose 4.6 percent to $38.85 in midday trading on Wall Street. The company’s results exceeded Wall Street forecasts.
“We met the challenges of managing costs and cash during the production shutdown while ensuring the ability to supply our customers as production resumed,” CEO Fred Lissalde said in a call Wednesday with analysts. “All this was done putting the health and safety of our employees in front.”
Lissalde also said that BorgWarner will be building integrated drive modules for Ford’s all-electric Mustang Mach-E crossover. The company’s “eAxle” iDM technology will power the Mach-E’s rear- and all-wheel-drive configurations. The company also will supply the secondary drive unit for the all-wheel-drive GT, he said.
The company said in the call that it is on track to close its long-awaited acquisition of Delphi Technologies this year.
