AUBURN HILLS, Mich.,
Nov. 10, 2014 /PRNewswire/
-- BorgWarner Inc. (NYSE: BWA), a leading provider of highly
engineered engine and drivetrain components and systems that help
improve fuel efficiency, emissions and vehicle performance, today
announced that it expects net new powertrain business to drive an
organic compound annual growth rate of 10 to 12 percent from 2014
through 2017. Organic growth includes the change in sales due to
net new business and excludes the impact of base business growth or
shrink, changes in product pricing, acquisitions, divestitures and
foreign currencies. The company's new business is sourced around
the globe and includes programs with nearly every major automaker
in the world.
The company expects net new business-related revenue within a
range of $850 million to $950 million
in 2015, $1,000 million to $1,200
million in 2016 and $1,000 million to
$1,200 million in 2017.
"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 works collaboratively with our customers
to solve the challenges they face. We anticipate trends and develop
innovations that enable automakers to put new powertrain
technologies on the road quickly."
Of the total three-year net new business, approximately 70
percent 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 approximately 30 percent is expected
from drivetrain-related products including all-wheel drive systems,
the company's fuel-efficient DualTronic® transmission
technology and its traditional automatic transmission products.
Geographically, BorgWarner expects new business to grow around
the world, particularly in China
and North America.
New business sales in Asia are
expected to account for about 55 percent of the total over the
period. Nearly 38 percent of BorgWarner's expected new business is
in China as sales in the world's
fastest growing market continue to accelerate. The top 25 customers
in the company's three-year net new business include eight Chinese
domestic original equipment manufacturers ("OEMs").
Approximately 30 percent of the anticipated new business over
the three years is in the Americas. This includes 25 percent with
the North American domestic OEMs compared with 19 percent in the
previous three-year net new business.
The European market accounts for approximately 15 percent of
expected net new business compared with 27 percent in the previous
three-year net new business. Europe remains an important growth market for
BorgWarner; however, the adoption of BorgWarner's advanced
powertrain technology in other parts of the world is expected to
outpace Europe over the next few
years.
Among BorgWarner's product lines, turbochargers account for
about 38 percent of the company's net new business, with growth in
the commercial vehicle, diesel passenger car and gasoline passenger
car markets. Turbocharging is a key strategy employed by
vehicle manufacturers to address the issues of fuel efficiency and
emissions reduction while maintaining vehicle performance.
Approximately 16 percent of the net new business is linked to
engine timing systems including variable cam timing. The company's
advanced engine timing technologies optimize air flow into and out
of an engine and reduce friction and weight to help improve fuel
economy, reduce emissions and increase power density.
All-wheel drive technology for front-wheel drive and rear-wheel
drive vehicles delivers 14 percent of the company's net new
business. The company's portfolio of all-wheel drive products
delivers superior torque distribution and management and is in high
demand around the world.
Another 8 percent of the new business is tied to the company's
dual-clutch technology. The technology provides the fuel-efficiency
and fun-to-drive characteristics of a manual transmission with the
convenience and smooth shifting of an automatic.
"Tightening emissions standards and a sharpened focus on fuel
economy in the commercial vehicle market is expected to provide
additional growth for BorgWarner," noted Verrier. "The top 25
customers of our three-year net new business include five
commercial vehicle OEMs. Roughly 9 percent of the expected new
business is related to the commercial vehicle market."
The impact of foreign currencies on the three-year net new
business, compared with the previous three-year net new business,
is negligible. The company expects a weaker Euro and a weaker
Brazilian Real to be offset by a stronger Chinese Yuan and a
stronger Korean Won.
About BorgWarner
BorgWarner Inc. (NYSE: BWA) is a product leader in highly
engineered components and systems for powertrains around the world.
Operating manufacturing and technical facilities in 60 locations in
19 countries, the company delivers innovative powertrain solutions
to improve fuel economy, reduce emissions and enhance performance.
For more information, please visit borgwarner.com.
Statements contained in this news release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. Words such as
"outlook," "expects," "anticipates," "intends," "plans,"
"believes," "estimates," variations of such words and similar
expressions are intended to identify such forward-looking
statements. 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. Such risks and uncertainties include:
fluctuations in domestic or foreign vehicle production, the
continued use of outside suppliers, fluctuations in demand for
vehicles containing our products, changes in general economic
conditions, and other risks detailed in our filings with the
Securities and Exchange Commission, including the Risk Factors,
identified in our most recently filed Annual Report on Form 10-K.
We do not undertake any obligation to update any forward-looking
statements.
SOURCE BorgWarner Inc.