The following is a summary of the BorgWarner Inc. (BWA) Q3 2024 Earnings Call Transcript:

Financial Performance:

• BorgWarner reported Q3 organic sales of over $3.4 billion, down about 5% year-over-year, but slightly better than market production.

• The company achieved a robust adjusted operating margin of 10.1%, which was 50 basis points higher than the prior year.

• Earnings per share for the quarter was $1.09, an increase of $0.11 from the previous year.

• The company revised its full-year revenue forecast downward, from $14.1 billion-$14.4 billion to $14.0 billion-$14.2 billion, but increased its full-year margin outlook from 9.6%-9.8% to 9.8%-10.0%.

Business Progress:

• BorgWarner secured new product awards for foundational and eProduct components that support long-term growth, including transfer cases for full-size pickups and high-voltage coolant heaters for electric vehicles in Asia.

• Completed a $400 million stock repurchase, demonstrating strong cash flow management and shareholder value focus.

• The company outlined its segmented business operations focusing on turbos, thermal technologies, drivetrain systems, and power drive systems, pinpointing their positions in the market and regions demonstrating robust diversity and resilience in sales.

Opportunities:

• BorgWarner's technological portfolio targeting both combustion and electric vehicle markets places it as a key player set to benefit from transitions in the automotive industry and regulatory changes favoring more efficient and cleaner technologies.

• Continued focus on operational efficiency and cost controls offers sustained profitability and competitive advantage in a changing market.

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