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BorgWarner To Temporarily Suspend Operations Amid COVID-19 Outbreak

BorgWarner Inc. (BWA) announced Tuesday that it will temporarily suspend operations at certain of its manufacturing and assembly facilities as many original equipment manufacturer (OEM) customers have temporary suspended or will suspend manufacturing operations, particularly in North America and Europe due to market conditions and matters associated with coronavirus (COVID-19) outbreak.

BorgWarner said the significant reductions in automotive or truck production would have an adverse effect on its sales to OEMs in these regions, which comprised about 70% of its total sales in 2019.

Although the Company is currently unable to reasonably estimate the impact of this situation on its 2020 outlook due to the heightened level of uncertainty, it does expect this situation to have a material impact on its 2020 financial performance and is in the process of reassessing its full-year financial guidance.

The company said it plans to provide an update to its outlook on its first quarter earnings call scheduled for May 6, 2020.

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