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BorgWarner Expects $2.9 Billion Of Net New Business For 2014 Through 2016

Stocks in this article: BWA

AUBURN HILLS, Mich., Nov. 5, 2013 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today announced $2.9 billion of expected net new powertrain business for 2014 through 2016, up 26% from the previous three-year net new business.  Demand for the company's advanced powertrain technologies, such as gasoline and diesel turbochargers, all-wheel drive systems, engine timing systems including variable cam timing devices, and emissions products, is expected to continue to drive strong growth.

BorgWarner is a leading provider of highly engineered engine and drivetrain components and systems that help improve fuel efficiency, emissions and vehicle performance. The company's new business is sourced around the globe and includes programs with nearly every major automaker in the world.

"Improving fuel economy, lowering emissions and enhancing the driving experience are increasingly important strategic initiatives for automakers around the world," said James R. Verrier, President and Chief Executive Officer.  "BorgWarner is uniquely positioned among vehicle suppliers to deliver powertrain technologies that help automakers meet these objectives.  We believe our fuel-efficient technologies will be in high demand as the industry continues to implement advanced powertrain strategies."

Of the total new business, approximately 80% is anticipated from engine-related products such as turbochargers, ignition systems, emissions products, engine timing systems including variable cam timing devices and thermal systems.  The remaining approximate 20% is expected from drivetrain-related products including all-wheel drive systems and the company's fuel-efficient DualTronic ® transmission technology and its traditional automatic transmission products.

"We have outpaced the growth of the industry by developing fuel-efficient technologies that meet the needs of the global market," Verrier continued.  "We expect this trend to continue. The European market accounts for approximately 27% of our expected new business compared with 30% in the previous three-year net new business. Europe remains an important growth market for our company, however the adoption of our advanced powertrain technology in other parts of the world is expected to outpace Europe over the next few years. New business sales in Asia are expected to account for about 47% of the total by the end of the period. Approximately 32% of our expected new business is in China as our sales to the world's fastest growing market continue to accelerate. The top twenty-five customers of our three-year net new business include eight Chinese domestic original equipment manufacturers ("OEMs"). Approximately 26% of the anticipated new business over the three years is in the Americas; this includes 19% with the North American domestic OEMs compared with 11% in the previous three-year net new business."

"Tightening emissions standards and a sharpened focus on fuel economy in the commercial vehicle market is expected to provide additional growth for BorgWarner. The top twenty-five customers of our three-year net new business include five commercial vehicle OEMs. Approximately 13% of the expected new business is related to the commercial vehicle market."

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