BorgWarner forecasts annual revenue, profit below estimates (updated)

Aptiv

06/02/2025 17:07

(Adds shares in paragraph 2, background in paragraph 4, details
from post earnings conference call in paragraphs 5 & 6)
    By Nathan Gomes
       Feb 6 (Reuters) - Auto parts supplier BorgWarner  BWA.N 
forecast full-year 2025 revenue and profit below Wall Street
estimates on Thursday, on expectations of lower automobile
production and a strong U.S. dollar.
    Shares of the company fell about 1.7% in afternoon trade.
    The Western auto industry is grappling with uncertainty
induced by U.S. President Donald Trump's tariffs, a consumer hit
by inflation and rising competition from affordable Chinese
brands.
    The stiff competition has caused many automakers to scale
back on their electrification ambitions over the past year,
impacting companies like BorgWarner, which makes drivetrains
among other parts.
    "We expect another year of declining industry volumes
combined with the uncertainty of tariff implications,"
BorgWarner executives said on a post earnings conference call. 
        The company's CFO Craig Aaron said that they would watch
for potential costs on tariffs and find a way to share them with
their suppliers and customers.
    Peer Aptiv  APTV.N  forecast 2025 profit above analysts'
estimates on Thursday aided by steady demand and cost measures,
but expressed caution on potential tariffs that might impact
supply chains and vehicle production.
    BorgWarner said it expects light and commercial weight
vehicle production to fall between 1% to 3% this year, with auto
output declining in both North America and Europe.
    The Michigan-based company expects 2025 net sales to be in
the range of $13.4 billion to $14.0 billion, below estimates of
$14.41 billion, according to data compiled by LSEG.
    Full-year adjusted profit per share is expected to be
between $4.05 and $4.40, compared with estimates of $4.49 per
share.

 (Reporting by Nathan Gomes and Rupali Chaudhary in Bengaluru;
Editing by Shailesh Kuber)
 ((Nathan.Gomes@thomsonreuters.com;))