AUBURN HILLS, Mich.,
Feb. 12, 2015 /PRNewswire/
-- BorgWarner Inc. (NYSE: BWA) today reported fourth quarter
2014 U.S. GAAP net earnings of $0.61
per diluted share. Excluding non-comparable items, net earnings
were $0.75 per diluted share. Net
sales were $1,992 million in the
quarter.
Fourth Quarter Highlights:
- Net sales of $1,992 million, up
6% compared with fourth quarter 2013.
- Excluding the impact of foreign currencies and the Wahler
acquisition, net sales were up 7% compared with fourth quarter
2013.
- U.S. GAAP net earnings of $0.61
per diluted share.
- Excluding the $(0.14) per diluted
share impact of restructuring, pension settlement activities and
intangible asset impairment, net earnings were $0.75 per diluted share.
- Operating income of $212 million.
- Excluding the $34 million pretax
impact of restructuring, pension settlement activities and
intangible asset impairment, operating income was $246 million, or 12.4% of net sales.
Full Year Highlights:
- Record net sales of $8,305
million.
- Excluding the impact of foreign currencies and the Wahler
acquisition, net sales were up 8% from 2013.
- U.S. GAAP earnings of $2.86 per
diluted share.
- Excluding net non-comparable items, 2014 earnings were
$3.25 per diluted share, a record for
the company, up 12% from 2013 comparable results.
- Operating income of $964 million,
or 11.6% of net sales.
- Excluding non-comparable items, operating income was 12.9% of
net sales, a full year record.
- Acquired Gustav Wahler GmbH u. Co. KG., a producer of exhaust
gas recirculation (EGR) valves and tubes as well as engine
thermostats for both on- and off-road applications.
- Repurchased over 2.4 million shares of common stock.
- Declared a 4% increase in the quarterly cash dividend.
Comment and Outlook: "2014 was a remarkably positive year
for our company," said James R.
Verrier, President and Chief Executive Officer, BorgWarner.
"Global adoption of our advanced powertrain technology, combined
with the Wahler acquisition, drove strong net sales growth of
11.7%. Furthermore, we delivered an impressive 12.9% operating
income margin, up from 12.4% in 2013, despite executing a major
restructuring of the Drivetrain segment, incurring the costs of
global growth and facing other macro challenges."
"As we look ahead to 2015," Verrier continued, "we expect our
backlog of net new business to drive industry-leading, low
double-digit organic net sales growth as demand for our product
technologies that improve fuel economy, emissions and performance,
continues to accelerate around the globe."
On January 14, 2015, the company
provided its initial guidance for 2015 net sales, earnings per
diluted share, operating income as a percentage of net sales,
effective tax rate and free cash flow. An update to 2015 guidance
will be provided in its first quarter 2015 financial release.
Financial Results: Net sales were $1,992 million in fourth quarter 2014, up 6% from
$1,885 million in fourth quarter
2013. Net earnings in the quarter were $140
million, or $0.61 per diluted
share, compared with $141 million, or
$0.62 per diluted share, in fourth
quarter 2013. Fourth quarter 2014 net earnings included
non-comparable items of $(0.14) per
diluted share. Fourth quarter 2013 net earnings included
non-comparable items of $(0.17) per
diluted share. These items are listed in a table below as
reconciliations of non-U.S. GAAP measures, which are provided by
the company for comparison with other results, and the most
directly comparable U.S. GAAP measures. The impact of foreign
currencies decreased net sales by approximately $100 million and decreased net earnings by
approximately $0.05 per diluted share
in fourth quarter 2014 compared with fourth quarter 2013.
Full year 2014 net sales were $8,305
million, up 12% from $7,437
million in 2013. Full year 2014 net earnings were
$656 million, or $2.86 per diluted share, compared with
$624 million, or $2.70 per diluted share, in 2013. Full year 2014
net earnings included non-comparable items of $(0.39) per diluted share. Full year 2013
included net non-comparable items of $(0.19) per diluted share. These items are listed
in a table below as reconciliations of non-U.S. GAAP measures,
which are provided by the company for comparison with other
results, and the most directly comparable U.S. GAAP measures. The
impact of foreign currencies decreased net sales by approximately
$8 million and decreased net earnings
by approximately $0.02 per diluted
share in 2014 compared with 2013.
The following table reconciles the company's non-U.S. GAAP
measures included in the press release, which are provided for
comparison with other results, and the most directly comparable
U.S. GAAP measures:
Net earnings per
diluted share
|
Fourth
Quarter
|
|
Full Year
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non – U.S.
GAAP
|
$
|
0.75
|
|
|
$
|
0.79
|
|
|
$
|
3.25
|
|
|
$
|
2.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expense
|
(0.09)
|
|
|
(0.15)
|
|
|
(0.33)
|
|
|
(0.15)
|
|
|
Intangible asset
impairment
|
(0.04)
|
|
|
(0.05)
|
|
|
(0.04)
|
|
|
(0.05)
|
|
|
Pension
settlement
|
|
|
|
|
|
|
(0.01)
|
|
|
|
|
|
Program termination
agreement
|
|
|
|
|
|
|
|
|
|
(0.03)
|
|
|
Retirement related
obligations
|
|
|
|
|
|
|
|
|
|
(0.02)
|
|
|
Tax
adjustments
|
|
|
|
0.02
|
|
|
|
|
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
GAAP
|
$
|
0.61
|
|
*
|
$
|
0.62
|
|
*
|
$
|
2.86
|
|
*
|
$
|
2.70
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Column does not
add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities was $802 million in 2014 compared with $719 million in 2013. Investments in capital
expenditures, including tooling outlays, totaled $563 million in 2014, compared with $418 million 2013. Balance sheet debt increased
by $117 million and cash decreased by
$142 million at the end of 2014
compared with the end of 2013. The $259
million increase in net debt was primarily due to dividend
payments to shareholders, share repurchases and the Wahler
acquisition. The company's net debt to net capital ratio was 12.8%
at the end of 2014 compared with 7.2% at the end of 2013.
Engine Segment Results: Engine segment net sales were
$1,384 million in fourth quarter 2014
compared with $1,266 million in
fourth quarter 2013. Excluding the impact of foreign currencies and
the Wahler acquisition, net sales were up 9% from the prior year's
quarter, primarily due to higher sales of turbochargers. Adjusted
earnings before interest, income taxes and non-controlling interest
("Adjusted EBIT") were $228 million
in fourth quarter 2014, up 9.7% from $208
million in fourth quarter 2013.
Drivetrain Segment Results: Drivetrain segment net sales
were $615 million in fourth quarter
2014 compared with $628 million in
fourth quarter 2013. Excluding the impact of foreign currencies,
net sales were up 2% from the prior year's quarter, primarily due
to higher sales of dual clutch transmission modules, partially
offset by a planned slow ramp-up of a major program by a North
American customer. Adjusted EBIT was $66
million in fourth quarter 2014, down 6.8% from $71 million in fourth quarter 2013.
Recent Highlights:
- BorgWarner officially opened its new production plant in Viana
do Castelo, Portugal. The
state-of-the-art building expands the company's production capacity
to meet growing demand for several exhaust gas recirculation
technologies as well as glow plug control modules for passenger
cars and commercial vehicles. The new facility provides 50 percent
more manufacturing space, than the currently rented site in Valenca
and has additional space for future expansion.
- BorgWarner manufacturing facilities in Frankfort, Illinois; Water Valley, Mississippi; and Ithaca, New York, received 2014 Supplier
Quality Excellence Awards from General Motors (GM), which were
presented to only 17 percent of GM's 2,300 suppliers in
the United States and Canada. Also, the company's manufacturing
plant in Manesar, India, was
presented with a 2014 Supplier Quality Excellence Award from GM
India.
- BorgWarner supplies its advanced turbocharging technology for
Volkswagen's latest 1.4-liter four-cylinder gasoline engine for the
Chinese market. The wastegate turbocharger applies a mixed-flow
turbine to deliver superior responsiveness over the entire engine
speed range.
- The company announced that it is supplying its GenV
electro-hydraulic actuated all-wheel drive coupling for
Lamborghini's new Huracan LP610-4 sports car. The intelligent
coupling automatically distributes power between the rear and front
wheels using a new lightweight and compact design for reduced
vehicle complexity and easier integration into the drivetrain.
- BorgWarner supplies its inverted tooth silent chain for JATCO's
CVT7 continuously variable transmission. The silent chain
technology drives the oil pump used to lubricate the system and
generate hydraulic pressure to adjust the pulleys that enable
torque transfer in a continuously variable transmission. The
transmission propels a wide variety of automobiles, including
Nissan, Suzuki and Mitsubishi.
- The company is supplying its high-performance friction
technology for Audi's new dual-clutch transmission. The advanced
technology features an innovative friction plate design that
significantly improves shift quality, helps increase fuel economy
and reduces noise, vibration and harshness (NVH). Audi's new
dual-clutch transmission was introduced on the Audi A6.
- BorgWarner is supplying its advanced front cross differential
technology (FXD) for the new SEAT Leon CUPRA. Designed for
high-performance front-wheel drive (FWD) vehicles, the electronic
limited slip differential significantly improves vehicle handling,
traction and stability in nearly all driving conditions. FXD
technology provides automakers with a cost-effective and
fuel-efficient alternative to all-wheel drive (AWD) systems.
- BorgWarner produces plug top ignition coils with integrated
electronics at its plant in Ramos,
Mexico, for Volkswagen's 2.0- and 1.8-liter I4 engines built
in Mexico. These engines power the
Volkswagen Jetta and Beetle as well as other models designated for
the U.S. market. The compact plug top technology delivers more
ignition energy and higher voltage than conventional plug top or
pencil ignition coils.
At 9:30 a.m. ET today, a brief
conference call concerning 2014 fourth quarter and full year
results will be webcast at:
http://www.borgwarner.com/en/Investors/default.aspx.
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 58 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.
BorgWarner
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
(millions, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net sales
|
$
|
1,991.9
|
|
|
$
|
1,885.4
|
|
|
$
|
8,305.1
|
|
|
$
|
7,436.6
|
|
Cost of
sales
|
1,578.6
|
|
|
1,478.8
|
|
|
6,548.7
|
|
|
5,879.1
|
|
Gross
profit
|
413.3
|
|
|
406.6
|
|
|
1,756.4
|
|
|
1,557.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
169.4
|
|
|
167.1
|
|
|
698.9
|
|
|
639.7
|
|
Other expense,
net
|
31.7
|
|
|
51.8
|
|
|
93.8
|
|
|
62.6
|
|
Operating
income
|
212.2
|
|
|
187.7
|
|
|
963.7
|
|
|
855.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in affiliates'
earnings, net of tax
|
(11.5)
|
|
|
(12.3)
|
|
|
(47.3)
|
|
|
(43.5)
|
|
Interest
income
|
(1.2)
|
|
|
(1.5)
|
|
|
(5.5)
|
|
|
(4.8)
|
|
Interest expense and
finance charges
|
10.2
|
|
|
7.6
|
|
|
36.4
|
|
|
34.2
|
|
Earnings before
income taxes and noncontrolling interest
|
214.7
|
|
|
193.9
|
|
|
980.1
|
|
|
869.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
67.3
|
|
|
44.5
|
|
|
292.6
|
|
|
218.3
|
|
Net
earnings
|
147.4
|
|
|
149.4
|
|
|
687.5
|
|
|
651.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to the noncontrolling interest, net of tax
|
7.5
|
|
|
8.0
|
|
|
31.7
|
|
|
26.7
|
|
Net earnings
attributable to BorgWarner Inc.
|
$
|
139.9
|
|
|
$
|
141.4
|
|
|
$
|
655.8
|
|
|
$
|
624.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share —
diluted
|
$
|
0.61
|
|
|
$
|
0.62
|
|
|
$
|
2.86
|
|
|
$
|
2.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding — diluted
|
228.0
|
|
|
229.5
|
|
|
228.9
|
|
|
231.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Information (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Capital expenditures,
including tooling outlays
|
$
|
165.1
|
|
|
$
|
119.9
|
|
|
$
|
563.0
|
|
|
$
|
417.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets and
tooling
|
$
|
76.9
|
|
|
$
|
70.3
|
|
|
$
|
303.2
|
|
|
$
|
272.7
|
|
Intangible assets and
other
|
6.5
|
|
|
6.6
|
|
|
27.2
|
|
|
26.7
|
|
|
$
|
83.4
|
|
|
$
|
76.9
|
|
|
$
|
330.4
|
|
|
$
|
299.4
|
|
BorgWarner
Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales by
Reporting Segment (Unaudited)
|
|
|
|
|
|
|
|
|
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Engine
|
$
|
1,383.9
|
|
|
$
|
1,266.0
|
|
|
$
|
5,705.9
|
|
|
$
|
5,022.1
|
|
Drivetrain
|
615.0
|
|
|
627.6
|
|
|
2,631.4
|
|
|
2,446.5
|
|
Inter-segment
eliminations
|
(7.0)
|
|
|
(8.2)
|
|
|
(32.2)
|
|
|
(32.0)
|
|
Net sales
|
$
|
1,991.9
|
|
|
$
|
1,885.4
|
|
|
$
|
8,305.1
|
|
|
$
|
7,436.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Before Interest, Income Taxes and Noncontrolling Interest
("Adjusted EBIT") (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Engine
|
$
|
228.0
|
|
|
$
|
207.9
|
|
|
$
|
924.0
|
|
|
$
|
826.0
|
|
Drivetrain
|
65.7
|
|
|
70.5
|
|
|
303.3
|
|
|
252.2
|
|
Adjusted
EBIT
|
293.7
|
|
|
278.4
|
|
|
1,227.3
|
|
|
1,078.2
|
|
Restructuring
expense
|
23.2
|
|
|
39.8
|
|
|
90.8
|
|
|
39.8
|
|
Intangible asset
impairment
|
10.3
|
|
|
12.5
|
|
|
10.3
|
|
|
12.5
|
|
Pension
settlement
|
0.4
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
Program termination
agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
11.3
|
|
Retirement related
obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
Corporate, including
equity in affiliates' earnings and stock-based
compensation
|
36.1
|
|
|
26.1
|
|
|
112.1
|
|
|
110.0
|
|
Interest
income
|
(1.2)
|
|
|
(1.5)
|
|
|
(5.5)
|
|
|
(4.8)
|
|
Interest expense and
finance charges
|
10.2
|
|
|
7.6
|
|
|
36.4
|
|
|
34.2
|
|
Earnings before
income taxes and noncontrolling interest
|
214.7
|
|
|
193.9
|
|
|
980.1
|
|
|
869.3
|
|
Provision for income
taxes
|
67.3
|
|
|
44.5
|
|
|
292.6
|
|
|
218.3
|
|
Net
earnings
|
147.4
|
|
|
149.4
|
|
|
687.5
|
|
|
651.0
|
|
Net earnings
attributable to the noncontrolling interest, net of tax
|
7.5
|
|
|
8.0
|
|
|
31.7
|
|
|
26.7
|
|
Net earnings
attributable to BorgWarner Inc.
|
$
|
139.9
|
|
|
$
|
141.4
|
|
|
$
|
655.8
|
|
|
$
|
624.3
|
|
BorgWarner
Inc.
|
|
|
|
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
$
|
797.8
|
|
|
$
|
939.5
|
|
Receivables,
net
|
1,443.5
|
|
|
1,248.5
|
|
Inventories,
net
|
505.7
|
|
|
458.1
|
|
Other current
assets
|
223.8
|
|
|
152.4
|
|
Total current
assets
|
2,970.8
|
|
|
2,798.5
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,093.9
|
|
|
1,939.4
|
|
Other non-current
assets
|
2,163.3
|
|
|
2,179.1
|
|
Total
assets
|
$
|
7,228.0
|
|
|
$
|
6,917.0
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable and
other short-term debt
|
$
|
623.7
|
|
|
$
|
201.6
|
|
Accounts payable and
accrued expenses
|
1,530.3
|
|
|
1,383.8
|
|
Income taxes
payable
|
14.2
|
|
|
38.5
|
|
Total current
liabilities
|
2,168.2
|
|
|
1,623.9
|
|
|
|
|
|
|
|
Long-term
debt
|
716.3
|
|
|
1,021.0
|
|
Other non-current
liabilities
|
652.6
|
|
|
639.7
|
|
|
|
|
|
|
|
Total BorgWarner Inc.
stockholders' equity
|
3,616.2
|
|
|
3,560.6
|
|
Noncontrolling
interest
|
74.7
|
|
|
71.8
|
|
Total
equity
|
3,690.9
|
|
|
3,632.4
|
|
Total liabilities and
equity
|
$
|
7,228.0
|
|
|
$
|
6,917.0
|
|
BorgWarner
Inc.
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(millions of
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
|
|
2014
|
|
|
2013
|
|
Operating
|
|
|
|
|
|
Net
earnings
|
$
|
687.5
|
|
|
$
|
651.0
|
|
Non-cash charges
(credits) to operations:
|
|
|
|
|
|
Depreciation and
amortization
|
330.4
|
|
|
299.4
|
|
Restructuring
expense, net of cash paid
|
45.8
|
|
|
48.5
|
|
Deferred income tax
expense (benefit)
|
42.3
|
|
|
(22.9)
|
|
Other non-cash
items
|
30.0
|
|
|
15.3
|
|
Net earnings adjusted
for non-cash charges to operations
|
1,136.0
|
|
|
991.3
|
|
Changes in assets and
liabilities
|
(334.2)
|
|
|
(272.5)
|
|
Net cash provided by
operating activities
|
801.8
|
|
|
718.8
|
|
|
|
|
|
|
|
Investing
|
|
|
|
|
|
Capital expenditures,
including tooling outlays
|
(563.0)
|
|
|
(417.8)
|
|
Payments for
businesses acquired, net of cash acquired
|
(110.5)
|
|
|
—
|
|
Net proceeds from
asset disposals
|
8.4
|
|
|
23.9
|
|
Net proceeds from
sale of businesses
|
—
|
|
|
9.1
|
|
Net cash used in
investing activities
|
(665.1)
|
|
|
(384.8)
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
|
Net increase
(decrease) in notes payable
|
493.2
|
|
|
(44.4)
|
|
Additions to
long-term debt, net of debt issuance costs
|
130.5
|
|
|
289.5
|
|
Repayments of
long-term debt, including current portion
|
(431.6)
|
|
|
(77.0)
|
|
Repayments of
accounts receivable securitization facility
|
(110.0)
|
|
|
—
|
|
Payments for purchase
of treasury stock
|
(139.9)
|
|
|
(225.5)
|
|
Proceeds from stock
options exercised, including the tax benefit
|
16.9
|
|
|
33.0
|
|
Taxes paid on
employees' restricted stock award vestings
|
(23.6)
|
|
|
(40.9)
|
|
Dividends paid to
BorgWarner stockholders
|
(116.1)
|
|
|
(56.8)
|
|
Dividends paid to
noncontrolling stockholders
|
(21.1)
|
|
|
(13.3)
|
|
Net cash used in
financing activities
|
(201.7)
|
|
|
(135.4)
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
(76.7)
|
|
|
25.2
|
|
|
|
|
|
|
|
Net increase in
cash
|
(141.7)
|
|
|
223.8
|
|
|
|
|
|
|
|
Cash at beginning of
year
|
939.5
|
|
|
715.7
|
|
Cash at end of
year
|
$
|
797.8
|
|
|
$
|
939.5
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/borgwarner-sets-full-year-records-for-net-sales-operating-income-margin-and-earnings-per-share-in-2014-300035179.html
SOURCE BorgWarner Inc.