DLPH - BorgWarner: 2019 Sales Fell but Margins Rose
In a preliminary earnings release for 2019, Michigan-based auto-industry supplier BorgWarner (NYSE: BWA) said that its operating income rose 9.5%, to $1.3 billion, despite foreign-exchange pressures and a decline in overall sales.
BorgWarner's full-year revenue of $10.168 billion was down 3.4% from its 2018 result, but slightly ahead of Wall Street's consensus estimate of $10.03 billion, as reported by Thomson Reuters.
The release of preliminary 2019 numbers was accompanied by the announcement that BorgWarner has agreed to acquire rival Delphi Technologies (NYSE: DLPH) in a $3.3 billion all-stock deal. Management also provided full-year guidance for 2020, though it excludes the impact of its pending deal with Delphi.