Turbocharger and emissions systems supplier BorgWarner Inc. reported today a 47 percent decline in third-quarter net profit as one-time costs offset sales gains.
The company reported net income of $83.3 million, or 39 cents per diluted share, in the third quarter, down from $157.4 million, or 70 cents per diluted share, in 2015. BorgWarner said one-time costs, including a $107 million asset impairment charge, dragged down its quarterly earnings by 39 cents per share, compared with 3 cents per share last year.
Sales revenue gained 18 percent to $2.2 billion on the quarter, driven in large part by a 48 percent rise in drivetrain division revenue.
Drivetrain division revenue increased to $866 million from $584 million in 2015. Much of the gain was a result of BorgWarner’s 2015 acquisition of supplier Remy International Inc., the company said. Excluding the impact of currencies and the Remy acquisition, the division’s sales gained 11 percent, the company said.
BorgWarner closed on its $951 million acquisition of Remy last November and agreed earlier this month to sell Remy’s light-vehicle aftermarket business to an investor group. The company said today it expects the $80 million sale to close in the fourth quarter.
Revenue in BorgWarner’s engine division gained 3.9 percent to $1.4 billion.
The supplier narrowed its expectations for 2016, saying it expects annual net earnings of between $3.24 and $3.28 per share and net sales growth of between 15.2 percent and 16 percent.
