BorgWarner (BWA)

Risks

• The Company faces risks related to the COVID-19 pandemic that could adversely affect its business and financial performance.
• The Company’s Charging Forward strategy may prove unsuccessful.
• The failure to realize the expected benefits of acquisitions and other risks associated with acquisitions could adversely affect the Company’s business.
• The Company may not be able to execute dispositions of assets or businesses successfully.
• Goodwill and indefinite-lived intangible assets, which are subject to periodic impairment evaluations, represent a significant portion of the Company’s total assets. An impairment charge on these assets could have a material adverse impact on its financial condition and results of operations.
• Conditions in the automotive industry may adversely affect the Company’s business.
• The Company faces strong competition.
• If the Company does not respond appropriately, the evolution of the automotive industry could adversely affect its business.
• The Company is under substantial pressure from OEMs to reduce the prices of its products.
• The Company continues to face volatile costs of commodities used in the production of its products.
• Changes in U.S. administrative policy, including changes to existing trade agreements and any resulting changes in international trade relations, may have an adverse effect on the Company.
• The Company uses important intellectual property in its business. If it is unable to protect its intellectual property or if a third party makes assertions against it or its customers relating to intellectual property rights, the Company’s business could be adversely affected.
• The Company is subject to business continuity risks associated with increasing centralization of its information technology (IT) systems.
• A failure of or disruption in the Company’s information technology infrastructure, including a disruption related to cybersecurity, could adversely impact its business and operations.
• The Company’s business success depends on attracting and retaining qualified personnel.
• The Company’s profitability and results of operations may be adversely affected by program launch difficulties.
• Part of the Company’s workforce is unionized which could subject it to work stoppages.
• Work stoppages, production shutdowns and similar events could significantly disrupt the Company’s business.
• Changes in interest rates and asset returns could increase the Company’s pension funding obligations and reduce its profitability.
• The Company is subject to extensive environmental regulations.
• The Company has liabilities related to environmental, product warranties, litigation and other claims.
• Compliance with and changes in laws could be costly and could affect operating results.
• Changes in tax laws or tax rates taken by taxing authorities and tax audits could adversely affect the Company’s business.
• There could be significant liability if the previous Delphi Technologies separation from its former parent fails to qualify as a tax-free transaction for U.S. federal income tax purposes.
• The Company is subject to risks related to its international operations.
• The Company’s business in China is subject to aggressive competition and is sensitive to economic, political, and market conditions.
• A downgrade in the ratings of the Company’s debt could restrict its ability to access the debt capital markets.
• The Company could incur additional restructuring charges as it continues to execute actions in an effort to improve future profitability and competitiveness and to optimize its product portfolio and may not achieve the anticipated savings and benefits from these actions.
• The Company relies on sales to major customers.
• The Company is sensitive to the effects of its major customers’ labor relations.
• The Company could be adversely affected by supply shortages of components from its suppliers.
• Suppliers’ economic distress could result in the disruption of the Company’s operations and could adversely affect its business.
• The Company is subject to possible insolvency of financial counterparties.
• A variety of other factors could adversely affect the Company’s business.