BorgWarner Inc. (BWA) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $293.30 million, or $ 1.39 a share in the quarter, against a net profit of $125.30 million, or $0.56 a share in the last year period. On an adjusted basis, earnings per share were at $0.85 for the quarter compared with $0.77 in the same period last year.
Revenue during the quarter grew 6.40 percent to $2,259 million from $2,123.10 million in the previous year period. Gross margin for the quarter expanded 113 basis points over the previous year period to 22.18 percent. Operating margin for the quarter stood at negative 20.27 percent as compared to a positive 9.44 percent for the previous year period.
Operating loss for the quarter was $458 million, compared with an operating income of $200.50 million in the previous year period.
For financial year 2017, BorgWarner Inc. projects revenue to be in the range of $8,810 million to $9,040 million for financial year 2017. It forecasts diluted earnings per share to be in the range of $3.35 to $3.45 for the same period.
For the first-quarter, BorgWarner Inc. projects revenue to grow in the range of 2.50 percent to 6.50 percent. It forecasts diluted earnings per share to be in the range of $0.81 to $0.85 for the same period.
Operating cash flow improves
BorgWarner Inc. has generated cash of $1,035.70 million from operating activities during the year, up 19.33 percent or $167.80 million, when compared with the last year.
The company has spent $404.20 million cash to meet investing activities during the year as against cash outgo of $1,759.10 million in the last year. It has incurred net capital expenditure of $490 million on net basis during the year, down 14.43 percent or $82.60 million from year ago.
The company has spent $733.80 million cash to carry out financing activities during the year as against cash inflow of $736.60 million in the last year period.
Cash and cash equivalents stood at $443.70 million as on Dec. 31, 2016, down 23.20 percent or $134 million from $577.70 million on Dec. 31, 2015.
Working capital increases
BorgWarner Inc. has recorded an increase in the working capital over the last year. It stood at $819.80 million as at Dec. 31, 2016, up 5.37 percent or $41.80 million from $778 million on Dec. 31, 2015. Current ratio was at 1.39 as on Dec. 31, 2016, up from 1.33 on Dec. 31, 2015.
Debt comes down
BorgWarner Inc. has recorded a decline in total debt over the last one year. It stood at $2,219.50 million as on Dec. 31, 2016, down 12.97 percent or $330.80 million from $2,550.30 million on Dec. 31, 2015. Total debt was 25.12 percent of total assets as on Dec. 31, 2016, compared with 28.84 percent on Dec. 31, 2015. Debt to equity ratio was at 0.67 as on Dec. 31, 2016, down from 0.70 as on Dec. 31, 2015.
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