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BorgWarner Sees FY20 Earnings In Line With Estimates, Revenue Below View

While reporting its financial results for the fourth quarter on Thursday, technology solutions provider BorgWarner Inc. (BWA) provided its financial outlook for fiscal 2020. The company forecast earnings in line with analysts' estimates and revenue below their view.

For fiscal 2020, the company forecast net earnings within a range of $3.22 to $3.75 per share and adjusted net earnings in a range of $3.85 to $4.15 per share.

Net sales for the year are expected to be in the range of $9.750 billion to $10.075 billion, implying year-over-year organic sales change of down 2.5 percent to up 0.5 percent.

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.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $4.01 per share on net sales of $10.15 billion for the year. Analysts' estimates typically exclude special items.

BorgWarner said that over the course of the next few years, it plans to take additional actions to reduce existing structural costs. These actions are expected to result in primarily cash restructuring costs in the range of $275 million to $300 million through the end of 2023.

The resulting annual cost savings are expected to be in the range of approximately $90 million to $100 million by 2023.

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