• BorgWarner Inc (NYSE:BWA) reported second-quarter FY21 net sales growth of 163.5% year-on-year, to $3.76 billion, beating the analyst consensus of $3.52 billion. Organic sales were up 72%.
• Net sales from the Air Management segment rose 124.4% Y/Y, and the e-Propulsion & Drivetrain Segment gained 120.3%.
• Gross profit soared 337.9% to $762 million, and gross margin expanded 810 basis points to 20.3%.
• The operating margin was 8.4%, with an operating income of $317 million.
• The company held $1.6 billion in cash and equivalents as of June 30, 2021.
• Net cash provided by operating activities for the quarter amounted to $280 million with a free cash flow of $133 million.
• Adjusted EPS of $1.08 beat the analyst consensus of $0.81.
• Outlook: BorgWarner sees FY21 sales of $15.2 billion - $15.6 billion (prior $14.8 billion - $15.4 billion), compared to the consensus of $15.13 billion.
• The company expects an adjusted EPS of $4.15 - $4.40 (prior $4.00 - $4.35), versus the consensus of $4.19.
• It sees an Operating margin of 8.7% - 9.3% (previous 8.7% - 9.4%).
• Price action: BWA shares are trading lower by 4.01% at $47.38 on the last check Wednesday.