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BorgWarner (BWA)

BorgWarner Inc. is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. Building on its original equipment expertise, BorgWarner also brings market leading product and service solutions to the global aftermarket. With manufacturing and technical facilities in 96 locations in 24 countries, the Company employs approximately 50,000 worldwide.

Company profile

Ticker
BWA
Exchange
CEO
Frederic Lissalde
Employees
Incorporated
Location
Fiscal year end
Former names
BORG WARNER AUTOMOTIVE INC
SEC CIK
Subsidiaries
ABBA BidCo AG • AKASOL AG • AKASOL Inc. • AS Catalizadores Ambientales, S. de R.L. de C.V. • B80 Italia S.r.l. • Beijing Delphi Technology Development Co., Ltd. • Beijing Delphi Wan Yuan Engine Management Systems Co., Ltd. • BorgWarner (Changnyeong) LLC • BorgWarner (China) Investment Co., Limited • BorgWarner (Reman) Holdings L.L.C. ...
IRS number
133404508

BWA stock data

Calendar

3 Aug 22
9 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.39B 1.39B 1.39B 1.39B 1.39B 1.39B
Cash burn (monthly) 38M 14.83M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 50.95M 19.89M n/a n/a n/a n/a
Cash remaining 1.34B 1.37B n/a n/a n/a n/a
Runway (months of cash) 35.2 92.4 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
20 Jul 22 Daniel Etue Common Stock Payment of exercise Dispose F No No 36.18 858 31.04K 13,198.16
1 Jun 22 Tonit M Calaway Common Stock Sell Dispose S No No 40.271 17,543 706.47K 40,380.17
17 May 22 Tonit M Calaway Common Stock Sell Dispose S No No 38.7539 4,000 155.02K 57,923.17
27 Apr 22 Shaun McAlmont Common Stock Grant Acquire A No No 36.72 4,085 150K 7,091.01
13F holders Current Prev Q Change
Total holders 596 618 -3.6%
Opened positions 64 109 -41.3%
Closed positions 86 66 +30.3%
Increased positions 247 206 +19.9%
Reduced positions 209 207 +1.0%
13F shares Current Prev Q Change
Total value 8.49B 9.89B -14.1%
Total shares 218.46M 219.36M -0.4%
Total puts 920.26K 608.8K +51.2%
Total calls 614.1K 449.86K +36.5%
Total put/call ratio 1.5 1.4 +10.7%
Largest owners Shares Value Change
Vanguard 26.13M $1.02B +2.2%
BLK Blackrock 21.53M $837.61M -8.0%
STT State Street 10.14M $394.38M -1.1%
Victory Capital Management 10.11M $393.16M +3.9%
Harris Associates L P 10.07M $391.7M +12.4%
FMR 6.87M $267.28M -3.0%
Diamond Hill Capital Management 6.83M $265.86M +0.5%
Dimensional Fund Advisors 6.49M $252.64M +2.9%
American Century Companies 5.97M $232.3M +13.9%
Geode Capital Management 4.78M $185.67M +4.4%
Largest transactions Shares Bought/sold Change
Norges Bank 0 -2.34M EXIT
BLK Blackrock 21.53M -1.87M -8.0%
First Trust Advisors 553.03K -1.17M -67.8%
Harris Associates L P 10.07M +1.11M +12.4%
Alecta Pensionsforsakring, Omsesidigt 1.48M -1M -40.3%
Black Creek Investment Management 4.75M +828.9K +21.2%
American Century Companies 5.97M +729.56K +13.9%
IVZ Invesco 3.64M +720.69K +24.7%
Sprucegrove Investment Management 1.53M -689.4K -31.1%
Ceredex Value Advisors 790.77K -653.68K -45.3%

Financial report summary

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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.
Management Discussion
  • Net sales for the three months ended June 30, 2022 totaled $3,759 million, flat compared to the three months ended June 30, 2021. Acquisitions, primarily AKASOL in June of 2021, contributed $67 million in additional sales in the three months ended June 30, 2022. In December 2021, the Company sold its Water Valley, Mississippi manufacturing facility, which accounted for $47 million of net sales in the three months ended June 30, 2021 that did not recur in 2022. Foreign currencies resulted in a year-over-year decrease in sales of approximately $221 million primarily due to the weakening of the Euro, Korean Won and Chinese Renminbi relative to the U.S. Dollar. The net increase excluding these items was primarily due to increased demand for the Company’s products and the impact of commercial negotiations with the Company’s customers, partially offset by the decline in industry production compared to the prior year, primarily in China due to COVID-19 related lock-downs.

Content analysis

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Positive
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Legalese
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