Auto supplier BorgWarner Inc. on Wednesday said its operating income doubled to $403 million in the first quarter, while net income fell from a one-time loss on equity securities.
The maker of turbochargers, powertrain sensors and battery heaters said net sales hit $4.1 billion in the first quarter, up 76 percent from the year-earlier period. The company attributed that gain mostly to its October acquisition of Delphi Technologies along with increased product demand and global markets’ recovery from the COVID-19 pandemic.
Net income was cut in half to $65 million primarily because of the unrealized loss of $272 million on equity securities.
BorgWarner’s quarterly results come in the midst of industry turmoil due to a global semiconductor chip shortage. Ford Motor Co., which made up about 13 percent of BorgWarner’s sales in 2020, said last week that the chip shortage could slash its vehicle production by half in the second quarter.
Still, BorgWarner raised its 2021 sales forecast to be “in the range of $14.8 billion to $15.4 billion, under the assumption that there are no additional production disruptions arising from COVID-19. This implies a year-over-year increase in organic sales of 12 percent to 17 percent.”
BorgWarner shares rose 5.4 percent to close at $51.12 on Wednesday in New York.
The supplier joined several others this month in reporting first-quarter results as the COVID-19 crisis lingers around the globe. More companies are set to report results over the next few weeks.
BorgWarner Inc. ranks No. 25 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $10.2 billion in 2019.
Reuters contributed to this report.
