BorgWarner on Track to Achieve Milestone of $4 Billion of Electric Vehicle Revenue by 2025

AUBURN HILLS, Mich., Oct. 27, 2022 /PRNewswire/ — BorgWarner Inc. (NYSE: BWA) today reported third quarter results.

Charging Forward Update:

Based on new business awards and actions announced to date, BorgWarner believes it is already on track to achieve approximately $4 billion of electric vehicle revenue by 2025. The Company continues to expect its 2022 electric vehicle revenue to grow to approximately $850 million, which is more than double what it was in 2021.
BorgWarner has agreed to acquire the charging business of Hubei Surpass Sun Electric (SSE). The acquisition complements BorgWarner’s existing European and North American charging footprints by adding a China presence. The Company now expects DC fast charging related revenue in the range of $225 million to $275 million by 2025. 
BorgWarner has been granted a production increase to supply its 800V silicon carbide (SiC) inverters to a premium European OEM. The initial order has now been significantly increased, with production for this program set to begin in 2024.
BorgWarner will supply electric motors for E-Axles of a European commercial vehicle OEM.  This e-axle is designed to equip new electric light commercial trucks ranging up to 7.5 tons. Production is expected to begin in early 2023.

Third  Quarter Highlights:

U.S. GAAP net sales of $4,060 million, an increase of 19% compared with third quarter 2021.

Excluding the impact of foreign currencies, the 2022 acquisitions of Santroll’s light vehicle eMotor business and, Rhombus Energy Solutions, and the 2021 divestiture of the Water Valley, Mississippi business, organic sales were up 29% compared with the third quarter 2021.

U.S. GAAP net earnings of $1.16 per diluted share.

Excluding $(0.08) per diluted share related to non-comparable items (detailed in the table below), adjusted net earnings were $1.24 per diluted share.

U.S. GAAP operating income of $389 million, or 9.6% of net sales.

Excluding $49 million of pretax expenses related to non-comparable items, adjusted operating income was $438 million, or 10.8% of net sales.

Net cash provided by operating activities of $347 million.

Free cash flow was $167 million.

Financial Results:

The Company believes the following table is useful in highlighting non-comparable items that impacted its U.S. GAAP net earnings per diluted share. The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company’s ongoing operations, and related tax effects.

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Earnings per diluted share

$        1.16

$        0.40

$        2.90

$        1.70

Non-comparable items:

Restructuring expense

0.03

0.21

0.20

0.52

Merger, acquisition and divestiture expense, net

0.02

0.04

0.15

0.14

Unrealized loss on equity securities

0.19

0.11

1.07

Other, primarily asset write-offs

0.06

Loss (gain) on sale of business

0.03

(0.05)

0.02

Loss on debt extinguishment

0.06

Tax adjustments

(0.04)

(0.04)

(0.42)

Adjusted earnings per diluted share

$        1.24

$        0.80

$        3.33

$        3.09

Net sales were $4,060 million for the third quarter 2022, an increase of 19% compared with $3,416 million for the third quarter 2021. Net earnings for the third quarter 2022 were $273 million, or $1.16 per diluted share, compared with net earnings of $96 million, or $0.40 per diluted share, for the third quarter 2021. Adjusted net earnings per diluted share for the third quarter 2022 were $1.24, up from adjusted net earnings per diluted share of $0.80 for the third quarter 2021. Adjusted net earnings for the third quarter 2022 excluded net non-comparable items of $(0.08) per diluted share. Adjusted net earnings for the third quarter 2021 excluded net non-comparable items of $(0.40) per diluted share. These items are listed in the table above, which is provided by the Company for comparison with other results and the most directly comparable U.S. GAAP measures. The increase in adjusted net earnings was primarily due to the benefit of customer pricing actions and the impact of higher revenue, partially offset by inflationary impacts on cost and higher R&D investment in the Company’s electrification portfolio.

Full Year 2022 Guidance: The Company has updated full year sales, margin and EPS guidance. Net sales are expected to be in the range of $15.4 billion to $15.7 billion, compared with 2021 sales of $14.8 billion. This implies a year-over-year increase in organic sales of 12% to 14%. The Company expects its weighted light and commercial vehicle markets to increase in the range of approximately 3% to 4.5% in 2022. Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $1 billion primarily due to the weakening of the Euro, the Korean Won and Chinese Renminbi against the U.S. dollar. The acquisitions of Santroll’s light vehicle eMotor business and Rhombus Energy Solutions are expected to increase year-over-year sales by an aggregate of approximately $45 million to $55 million. The divestiture of the Water Valley, Mississippi business will decrease year-over-year sales by approximately $177 million.

Operating margin for the full year is expected to be in the range of 8.6% to 8.9%. Excluding the impact of non-comparable items, adjusted operating margin is expected to be in the range of 10.0% to 10.2%. Net earnings are expected to be within a range of $3.71 to $3.91 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings are expected to be within a range of $4.25 to $4.45 per diluted share. Full-year operating cash flow is expected to be in the range of $1,450 million to $1,500 million, while free cash flow is expected to be in the range of $650 million to $750 million.

At 9:30 a.m. ET today, a brief conference call concerning third quarter 2022 results and guidance will be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will be available at https://www.borgwarner.com/investors.

For more than 130 years, BorgWarner Inc. (NYSE: BWA) has been a transformative global product leader bringing successful mobility innovation to market. Today, we’re accelerating the world’s transition to eMobility — to help build a cleaner, healthier, safer future for all.

Forward-Looking Statements: This press release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management’s current outlook, expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “could,” “designed,” “effect,” “estimates,” “evaluates,” “expects,” “forecasts,” “goal,” “guidance,” “initiative,” “intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact contained or incorporated by reference in this press release that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading “Critical Accounting Policies and Estimates” in Item 7 of our most recently-filed Annual Report on Form 10-K (“Form 10-K”), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company’s actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer (“OEM”) customers and their suppliers, including us; commodities availability and pricing, and an inability to achieve expected levels of success in additional commercial negotiations with customers concerning recovery of these costs; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly changing technologies, particularly as relates to electric vehicles, and our ability to innovate in response; uncertainties regarding the extent and duration of impacts of matters associated with the COVID-19 pandemic, including additional production disruptions; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; potential disruptions in the global economy caused by Russia’s invasion of Ukraine; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis including our recent acquisitions of AKASOL AG, Santroll’s light vehicle eMotor business, Rhombus Energy Solutions, the charging business of Hubei Surpass Sun Electric and our 2020 acquisition of Delphi Technologies PLC; the ability to identify appropriate combustion portfolio businesses for disposition and consummate planned dispositions on acceptable terms; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; our dependence on automotive and truck production, both of which are highly cyclical and subject to disruptions; our reliance on major OEM customers; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment and potential for recessionary conditions in regional economies; the outcome of existing or any future legal proceedings, including litigation with respect to various claims; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; impacts from any potential future acquisition or disposition transactions; and the other risks noted in reports that we file with the Securities and Exchange Commission, including Item 1A, “Risk Factors” in our most recently-filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this press release to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements.

BorgWarner Inc

Condensed Consolidated Statements of Operations (Unaudited)

(in millions, except per share amounts)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Net sales

$      4,060

$      3,416

$   11,693

$   11,183

Cost of sales

3,254

2,766

9,425

8,953

Gross profit

806

650

2,268

2,230

Gross margin

19.9 %

19.0 %

19.4 %

19.9 %

Selling, general and administrative expenses

397

343

1,179

1,084

Restructuring expense

8

51

50

143

Other operating expense, net

12

3

26

30

Operating income

389

253

1,013

973

Equity in affiliates’ earnings, net of tax

(10)

(12)

(29)

(40)

Unrealized (gain) loss on equity securities

(1)

61

27

337

Interest expense, net

12

18

42

75

Other postretirement income

(8)

(10)

(26)

(33)

Earnings before income taxes and noncontrolling interest

396

196

999

634

Provision for income taxes

104

79

252

149

Net earnings

292

117

747

485

Net earnings attributable to noncontrolling interest, net of tax

19

21

58

77

Net earnings attributable to BorgWarner Inc

$         273

$           96

$         689

$         408

Diluted earnings per share of common stock

$        1.16

$        0.40

$        2.90

$        1.70

Weighted average shares outstanding — diluted

235.6

239.8

237.5

239.3

BorgWarner Inc

Net Sales by Reporting Segment (Unaudited)*

(in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Air Management

$         1,908

$         1,576

$         5,510

$         5,223

ePropulsion & Drivetrain

1,371

1,134

3,917

3,756

Fuel Systems

600

515

1,707

1,688

Aftermarket

327

316

960

920

Inter-segment eliminations

(146)

(125)

(401)

(404)

Net sales

$         4,060

$         3,416

$       11,693

$       11,183

Segment Adjusted Operating Income (Unaudited)*

(in millions)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2022

2021

2022

2021

Air Management

$             277

$             214

$             755

$             791

ePropulsion & Drivetrain

86

83

270

349

Fuel Systems

83

50

193

159

Aftermarket

49

43

139

123

Segment Adjusted Operating Income

495

390

1,357

1,422

Corporate, including stock-based compensation

57

54

182

201

Intangible asset amortization expense

24

25

74

65

Restructuring expense

8

51

50

143

Merger, acquisition and divestiture expense, net

8

8

40

36

Other, primarily asset write-offs

(1)

13

(3)

Loss (gain) on sale of business

9

(15)

7

Equity in affiliates’ earnings, net of tax

(10)

(12)

(29)

(40)

Unrealized (gain) loss on equity securities

(1)

61

27

337

Interest expense, net

12

18

42

75

Other postretirement income

(8)

(10)

(26)

(33)

Earnings before income taxes and noncontrolling interest

396

196

999

634

Provision for income taxes

104

79

252

149

Net earnings

292

117

747

485

Net earnings attributable to noncontrolling interest, net of tax

19

21

58

77

Net earnings attributable to BorgWarner Inc

$             273

$               96

$             689

$             408

____________________________

*  In the first quarter of 2022, the Company announced that the starter and alternator business previously reported in its e-Propulsion & Drivetrain segment will transition to the Aftermarket segment. The Company also announced that the canisters and fuel delivery modules business previously reported in its Air Management segment will transition to the Fuel Systems segment. Both of these transitions were completed during the second quarter 2022. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure.

BorgWarner Inc

Condensed Consolidated Balance Sheets (Unaudited)

(in millions)

September 30,
2022

December 31,
2021

ASSETS

Cash, cash equivalents and restricted cash

$              1,241

$              1,844

Receivables, net

3,363

2,898

Inventories, net

1,658

1,534

Prepayments and other current assets

285

321

Total current assets

6,547

6,597

Property, plant and equipment, net

4,006

4,395

Other non-current assets

5,524

5,583

Total assets

$           16,077

$           16,575

LIABILITIES AND EQUITY

Notes payable and other short-term debt

$                   56

$                   66

Accounts payable

2,400

2,276

Other current liabilities

1,360

1,456

Total current liabilities

3,816

3,798

Long-term debt

4,080

4,261

Other non-current liabilities

1,144

1,254

Total liabilities

9,040

9,313

Total BorgWarner Inc. stockholders’ equity

6,775

6,948

Noncontrolling interest

262

314

Total equity

7,037

7,262

Total liabilities and equity

$           16,077

$           16,575

BorgWarner Inc

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in millions)

Nine Months Ended September 30,

2022

2021

OPERATING

Net cash provided by operating activities

$                 679

$                 764

INVESTING

Capital expenditures, including tooling outlays

(511)

(494)

Capital expenditures for damage to property, plant and equipment

(2)

Insurance proceeds received for damage to property, plant and equipment

5

Payments for businesses acquired, net of cash acquired

(288)

(759)

Proceeds from settlement of net investment hedges, net

40

21

Proceeds from (payments for) investments in equity securities

27

(15)

Proceeds from the sale of business, net

25

Proceeds from asset disposals and other, net

21

6

Net cash used in investing activities

(686)

(1,238)

FINANCING

Net decrease in notes payable

(8)

Additions to debt

2

1,273

Payments for debt issuance costs

(10)

Repayments of debt, including current portion

(9)

(698)

Payments for purchase of treasury stock

(240)

Payments for stock-based compensation items

(18)

(14)

Purchase of noncontrolling interest

(59)

(33)

Dividends paid to BorgWarner stockholders

(121)

(122)

Dividends paid to noncontrolling stockholders

(48)

(38)

Net cash (used in) provided by financing activities

(493)

350

Effect of exchange rate changes on cash

(103)

(16)

Net decrease in cash, cash equivalents and restricted cash

(603)

(140)

Cash, cash equivalents and restricted cash at beginning of year

1,844

1,650

Cash, cash equivalents and restricted cash at end of period

$              1,241

$              1,510

Supplemental Information (Unaudited)

(in millions)

Nine Months Ended September 30,

2022

2021

Depreciation and tooling amortization

$                 469

$                 520

Intangible asset amortization

$                   74

$                   65

Non-GAAP Financial Measures

This press release contains information about BorgWarner’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures below and in the Financial Results table above. The provision of these comparable GAAP financial measures for 2022 is not intended to indicate that BorgWarner is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this press release and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company’s business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by BorgWarner may not be comparable to similarly titled measures reported by other companies.

Adjusted Operating Income and Adjusted Operating Margin

In 2021 and prior, the Company defined adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company’s ongoing operations. Beginning in the first quarter of 2022, the Company updated its definition of adjusted operating income and adjusted operating margin to add back intangible asset amortization expense. For comparability, the 2021 reconciliation below adds back intangible asset amortization expense. The updated definition of adjusted operating income is operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company’s ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales.

Adjusted Net Earnings

The Company defines adjusted net earnings as net earnings attributable to BorgWarner Inc. adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company’s ongoing operations, and related tax effects. The impact of intangible asset amortization expense will continue to be included in adjusted net earnings.

Adjusted Earnings per Diluted Share

The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company’s ongoing operations, and related tax effects. The impact of intangible asset amortization expense continues to be included in adjusted earnings per share.

Free Cash Flow

The Company defines free cash flow as net cash provided by operating activities minus capital expenditures and is useful to both management and investors in evaluating the Company’s ability to service and repay its debt.

Organic Net Sales Change

The Company defines organic net sales changes as net sales change year over year excluding the estimated impact of foreign exchange (FX), the 2022 acquisitions of Santroll’s light vehicle eMotor business and Rhombus Energy Solutions, as well as the 2021 divestiture of the Water Valley, Mississippi business.

Adjusted Operating Income and Adjusted Operating Margin (Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

(in millions)

2022

2021

2022

2021

Net sales

$      4,060

$      3,416

$   11,693

$   11,183

Operating income

$         389

$         253

$      1,013

$         973

Operating margin

9.6 %

7.4 %

8.7 %

8.7 %

Non-comparable items:

Intangible asset amortization expense

$           24

$           25

$           74

$           65

Restructuring expense

8

51

50

143

Merger, acquisition and divestiture expense, net

8

8

40

36

Other, primarily asset write-offs

(1)

13

(3)

Loss (gain) on sale of business

9

(15)

7

Adjusted operating income

$         438

$         336

$      1,175

$      1,221

Adjusted operating margin

10.8 %

9.8 %

10.0 %

10.9 %

Free Cash Flow Reconciliation (Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

(in millions)

2022

2021

2022

2021

Net cash provided by operating activities

$             347

$             142

$             679

$             764

Capital expenditures, including tooling outlays

(180)

(152)

(511)

(494)

Free cash flow

$             167

$             (10)

$             168

$             270

Third Quarter 2022 Organic Net Sales Change (Unaudited)

(in millions)

Q3 2021 Net Sales

Disposition
Impact

Q3 2021 Pro Forma
Net Sales

FX

Q3 2022Acquisition
Impact

Organic Net
Sales
Change

Q3 2022 Net Sales

Organic Net
Sales
Change %

Air Management

$   1,576

$            —

$      1,576

$   (177)

$           1

$         508

$   1,908

32.2 %

ePropulsion & Drivetrain

1,134

(38)

1,096

(82)

11

346

1,371

31.6 %

Fuel Systems

515

515

(45)

130

600

25.2 %

Aftermarket

316

316

(16)

27

327

8.5 %

Inter-segment eliminations

(125)

(125)

(21)

(146)

Total

$   3,416

$        (38)

$      3,378

$   (320)

$         12

$         990

$   4,060

29.3 %

Year to Date 2022 Organic Net Sales Change (Unaudited)

(in millions)

Q3 2021YTD Net
Sales

YTD
Disposition
Impact

Q3 2021YTD Pro
Forma Net
Sales

FX

Q3 2022YTD
Acquisition
Impact

Organic Net
Sales
Change

Q3 2022YTD Net
Sales

Organic Net
Sales
Change %

Air Management

$   5,223

$            —

$      5,223

$   (373)

$           1

$         659

$   5,510

12.6 %

ePropulsion & Drivetrain

3,756

(137)

3,619

(160)

12

446

3,917

12.3 %

Fuel Systems

1,688

1,688

(89)

108

1,707

6.4 %

Aftermarket

920

920

(32)

72

960

7.8 %

Inter-segment eliminations

(404)

(404)

3

(401)

Total

$ 11,183

$      (137)

$    11,046

$   (654)

$         13

$      1,288

$ 11,693

11.7 %

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)

Full-Year 2022 Guidance

(in millions)

Low

High

Net sales

$        15,400

$        15,700

Operating income

1,325

1,390

Operating margin

8.6 %

8.9 %

Non-comparable items:

Restructuring expense

$                75

$                75

Intangible asset amortization expense

97

97

Merger, acquisition and divestiture expense, net

40

40

Other, primarily asset write-offs

13

13

Gain on sale of business

(15)

(15)

Adjusted operating income

$          1,535

$          1,600

Adjusted operating margin

10.0 %

10.2 %

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)

Full-Year 2022 Guidance

Low

High

Earnings per Diluted Share

$                3.71

$                3.91

Non-comparable items:

Restructuring expense

0.30

0.30

Merger, acquisition and divestiture expense, net

0.16

0.16

Unrealized loss on equity securities

0.11

0.11

Other, primarily asset write-offs

0.05

0.05

Gain on sale of business

(0.05)

(0.05)

Tax adjustments

(0.03)

(0.03)

Adjusted Earnings per Diluted Share

$                4.25

$                4.45

Free Cash Flow Guidance Reconciliation (Unaudited)

Full-Year 2022 Guidance

(in millions)

Low

High

Net cash provided by operating activities

$             1,450

$             1,500

Capital expenditures, including tooling outlays

(800)

(750)

Free cash flow

$                650

$                750

Full Year 2022 Organic Net Sales Change Guidance Reconciliation (Unaudited)

(in millions)

FY 2021 Net
Sales

Disposition
Impact

FY 2021 Pro
Forma Net
Sales

FX

FY 2022
Acquisition
Impact

Organic Net
Sales
Change

FY 2022 Net
Sales

Organic Net
Sales
Change %

Low

$     14,838

$       (177)

$     14,661

$    (1,050)

$            45

$       1,744

$      15,400

11.9 %

High

$     14,838

$       (177)

$     14,661

$    (1,050)

$            55

$       2,034

$      15,700

13.9 %

Recast Segment Information

In the first quarter of 2022, the Company announced that the starter and alternator business, previously reported in its e-Propulsion & Drivetrain segment, would transition to the Aftermarket segment. The Company also announced that the canisters and fuel delivery modules business, previously reported in its Air Management segment, would transition to the Fuel Systems segment. Both of these transitions were completed during the second quarter of 2022. The reporting segment disclosures have been updated accordingly which included recasting prior period information for the new reporting structure. For informational purposes only, in the following tables, the Company has recast the quarterly segment information for fiscal 2021 and 2022 to align with this presentation.

2022 Net Sales by Reporting Segment (Unaudited)

(in millions)

Three Months Ended
March 31,
2022

Three Months Ended
June 30,
2022

Three Months
Ended September
30,2022

Nine Months
Ended September
30, 2022

Air Management

$                  1,812

$                  1,790

$                  1,908

$                  5,510

ePropulsion & Drivetrain

1,274

1,272

1,371

3,917

Fuel Systems

591

516

600

1,707

Aftermarket

321

312

327

960

Inter-segment eliminations

(124)

(131)

(146)

(401)

Totals

$                  3,874

$                  3,759

$                  4,060

$                11,693

2022 Segment Adjusted Operating Income (Unaudited)

Three Months
Ended March 31,
2022

Three Months
Ended June 30,
2022

Three Months
Ended September
30, 2022

Nine Months Ended
September 30,
2022

(in millions)

% margin

% margin

% margin

% margin

Air Management

$    243

13.4 %

$    235

13.1 %

$    277

14.5 %

$    755

13.7 %

e-Propulsion & Drivetrain

104

8.2 %

80

6.3 %

86

6.3 %

270

6.9 %

Fuel Systems

66

11.2 %

44

8.5 %

83

13.8 %

193

11.3 %

Aftermarket

39

12.1 %

51

16.3 %

49

15.0 %

139

14.5 %

2021 Net Sales by Reporting Segment (Unaudited)

(in millions)

Three Months
Ended March 31,
2021

Three Months
Ended June 30,
2021

Three Months
Ended September
30, 2021

Three Months
Ended December
31, 2021

Year Ended
December 31,
2021

Air Management

$                  1,893

$                  1,754

$                  1,576

$                  1,664

$                  6,887

ePropulsion & Drivetrain

1,378

1,244

1,134

1,263

5,019

Fuel Systems

591

582

515

549

2,237

Aftermarket

287

317

316

292

1,212

Inter-segment eliminations

(140)

(139)

(125)

(113)

(517)

Totals

$                  4,009

$                  3,758

$                  3,416

$                  3,655

$                14,838

2021 Segment Adjusted Operating Income (Unaudited)

Three Months
Ended March 31,
2021

Three Months
Ended June 30,
2021

Three Months
Ended September
30, 2021

Three Months
Ended December
31, 2021

Year Ended
December 31,
2021

(in millions)

% margin

% margin

% margin

% margin

% margin

Air Management

$    310

16.4 %

$    267

15.2 %

$    214

13.6 %

$    254

15.3 %

$ 1,045

15.2 %

ePropulsion & Drivetrain

134

9.7 %

132

10.6 %

83

7.3 %

128

10.1 %

477

9.5 %

Fuel Systems

53

9.0 %

56

9.6 %

50

9.7 %

76

13.8 %

235

10.5 %

Aftermarket

36

12.5 %

44

13.9 %

43

13.6 %

41

14.0 %

164

13.5 %

SOURCE BorgWarner


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