By Adriano Marchese
BorgWarner Inc. on Wednesday reported a swing to loss in the second quarter as net sales took a hit due to disruptions arising from the pandemic, and said it sees full year net sales declines and foreign currencies harming its full year performance.
The Auburn Hills, Michigan-based company--which focuses on combustion, hybrid and electric vehicles technology solutions--reported a quarterly loss of $98 million, or 47 cents a share, compared with $172 million, or 83 cents a share, for the same period last year.
Excluding items, BorgWarner reported an adjusted loss of 14 cents a share for the quarter, beating a loss of 47 cents that analysts polled on FactSet had forecast.
Net sales fell to $1.43 million from $2.55 billion.
Looking ahead, the company expects net sales for the full year to be between $8 billion and $8.4 billion, but cautioned that these figures assume no more pandemic-related disruptions to production.
As a result, BorgWarner says that this implies a decline in year-over-year organic sales of around 16% to 20%.
Moreover, the company said the depreciation of the Euro, Chinese Renminbi and Korean Won against the U.S. dollar are expected to result in a year-over-year decrease in sales of approximately $110 million.
Write to Adriano Marchese at email@example.com