BorgWarner (NYSE: BWA) reported Q2 EPS of ($0.14), $0.32 better than the analyst estimate of ($0.46). Revenue for the quarter came in at $1.43 billion versus the consensus estimate of $1.24 billion.

GUIDANCE:

BorgWarner sees 2020 revenue of $8-8.4 billion, versus the consensus of $8.16 billion.

• The company is providing updated 2020 full year guidance. This guidance is for BorgWarner as currently consolidated and excludes the potential impact from the acquisition of Delphi Technologies PLC, which BorgWarner announced on January 28, 2020. Net sales are expected to be in the range of $8.0 billion to $8.4 billion, under the assumption that there are not additional production disruptions arising from COVID-19. This implies a year-over-year decrease in organic sales of 16% to 20%. The company expects its blended light-vehicle market to decline in the range of approximately 22% to 25% in 2020. Due to the impact of COVID-19, global light vehicle production expectations remain volatile. Foreign currencies are expected to result in a year-over-year decrease in sales of approximately $110 million, primarily due to the depreciation of the Euro, Chinese Renminbi and Korean Won against the U.S. dollar. The divestiture of the thermostat product line decreased year-over-year sales by approximately $30 million. Full-year operating cash flow is expected to be in the range of $700 million to $850 million, while free cash flow is expected to be in the range of $300 million to $400 million.

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