Stock Monitor: Aptiv Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 14, 2018 / If you want access to our free earnings report on BorgWarner Inc. (NYSE: BWA), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BWA. BorgWarner reported its first quarter fiscal 2018 operating and financial results on April 26, 2018. The auto parts supplier outperformed top- and bottom-line expectations. Additionally, the Company raised its earnings guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, BorgWarner most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

BorgWarner's net sales were $2.78 billion in Q1 2018, up 15.7% from $2.41 billion in Q1 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, the Company's net sales grew 6.6% on a y-o-y basis. BorgWarner's reported numbers topped analysts' estimates of $2.63 billion.

For Q1 2018, BorgWarner's net earnings totaled $225 million, or $1.07 per diluted share, compared to $189 million, or $0.89 per diluted share, in Q1 2017. The Company's net earnings in the reported quarter included non-comparable items of $0.03 per diluted share versus net non-comparable items of $0.02 per diluted share in the year earlier quarter. The impact of foreign currencies increased net earnings by approximately $0.08 per diluted share in Q1 2018.

On an adjusted basis, BorgWarner reported earnings of $1.10 per share, up 21% compared to $0.91 per share in Q1 2017 and came in ahead of Wall Street's estimates of $1.03 per share.

BorgWarner's Segment Results

During Q1 2018, the Engine segment's net sales rose 15% to $1.72 billion compared to $1.50 billion in Q1 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's net sales were up 4.9% on a y-o-y basis. In Q1 2018, Engine segment's adjusted earnings before interest, income taxes, and non-controlling interest (EBIT) were $280 million. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's adjusted EBIT was $263 million in the reported quarter, up 6.7% on a y-o-y basis.

For Q1 2018, the Drivetrain segment's net sales totaled $1.08 billion, up 15% compared to $925 million in Q1 2017. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's net sales rose 9.2% from the prior year's same quarter. The Drivetrain segment's adjusted EBIT was $121 million in Q1 2018. Excluding the impact of foreign currencies and the acquisition of Sevcon, the segment's adjusted EBIT was $117 million, up 12.4% on a y-o-y basis.

Cash Matters

During Q1 2018, BorgWarner's net cash provided by operating activities was $35 million compared to $60 million in Q1 2017. The Company's investments in capital expenditures, including tooling outlays, totaled $160 million in the reported quarter, compared with $131 million in the prior year quarter. BorgWarner's balance sheet debt increased $137 million and cash decreased by $136 million at the end of Q1 2018 compared to the end of FY17. The Company's net debt to net capital ratio was 32.3% at the end of the reported quarter compared to 30.0% at the end of FY17.

Outlook

BorgWarner is forecasting FY18 net sales to be in the range of $10.77 billion - $10.94 billion, implying organic sales growth of 5.0% to 7.0%. Foreign currencies are expected to increase sales by $405 million, while the acquisition of Sevcon is expected to increase sales by approximately $50 million. The Company is estimating net earnings to be within a range of $4.30 to $4.40, with the increase in guidance primarily due to a larger benefit from foreign exchange rates.

For Q2 2018, BorgWarner is projecting organic net sales growth of 7.0% to 9.0% compared to net sales of $2.39 billion in Q2 2017. Foreign currencies are expected to increase sales by $125 million, while acquisition of Sevcon is estimated to add sales by approximately $15 million. The Company's net earnings are expected to be within a range of $1.09 to $1.11 per diluted share, including a negative y-o-y impact of $0.02 per diluted share due to higher minority interest and lower equity income.

Stock Performance Snapshot

May 11, 2018 - At Friday's closing bell, BorgWarner's stock marginally advanced 0.26%, ending the trading session at $50.61.

Volume traded for the day: 897.80 thousand shares.

Stock performance in the past twelve-month period ? up 20.99%

After last Friday's close, BorgWarner's market cap was at $10.60 billion.

Price to Earnings (P/E) ratio was at 14.24.

The stock has a dividend yield of 1.34%.

The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.

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