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Aug. 5, 2020, 7:37 a.m. EDT

BorgWarner swings to loss as pandemic hurts sales

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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 adriano.marchese@wsj.com

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