By Dean Seal
BorgWarner issued weaker-than-expected 2025 guidance after swinging to a loss in the fourth quarter as sales fell and it took on impairment charges that slashed the bottom line.
The auto-parts maker posted a loss of $405 million, or $1.85 a share, compared with a profit of $154 million, or 66 cents a share, in the same quarter a year ago. The quarter included $646 million in goodwill and fixed asset impairment charges related to its PowerDrive Systems and battery and charging systems segments.
Stripping out one-time items, adjusted earnings were $1.01 a share. Analysts polled by FactSet had been expecting 96 cents a share.
Sales decreased 2.4% to $3.44 billion, below analyst forecasts for $3.46 billion, according to FactSet. The decline was largely driven by lower industry production, which offset higher demand for BorgWarner products, the company said.
The Auburn Hills, Mich., company is targeting $13.4 billion to $14 billion in sales for 2025, below current analyst estimates for $14.25 billion, according to FactSet.
Full-year earnings are expected to be $3.84 to $4.12 a share, and $4.05 to $4.40 a share on an adjusted basis. Analysts surveyed by FactSet had been projecting $4.44 a share in adjusted earnings.
Shares dropped 5% to $29.61 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 06, 2025 06:55 ET (11:55 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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