AUBURN HILLS, Mich., Sept. 18, 2018 /PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today is hosting its 2018 Investor Day at its Propulsion Technical Center in Auburn Hills, Michigan. During the event, company executives will share the company's growth strategy, vision and extensive product portfolio for combustion, hybrid and electric vehicle propulsion. As part of this event, management has provided its 2023 outlook for the company.
2023 Outlook Highlights:
- Compared to industry volume expectations, the company expects to be overweight in hybrid and electric revenue by 2023.
- Revenue related to combustion, hybrid and electric vehicle propulsion is expected to grow in excess of industry volume in all three propulsion system categories.
- The company anticipates 2023 consolidated revenue of approximately $14.0 billion.
- Operating margin is expected to improve to the low 13% range by 2023.
- 2023 free cash flow is expected to be approximately $1.0 billion.
- Free cash flow outlook implies an approximate 12% Compound Annual Growth Rate (CAGR) when compared to 2018 guidance of $550 million to $575 million.
Updated 2018 Guidance: The company has moderated its 2018 full year organic growth guidance, due to weaker industry volumes primarily in China, with additional short-term issues in Europe. Full year net sales are now expected to be in the range of $10.49 billion to $10.58 billion. This implies organic sales growth of approximately 4.5% to 5.5% or 450 to 550 basis points over the company's light vehicle market exposure. 2018 full year adjusted net earnings are now expected to be within a range of $4.35 to $4.40 per diluted share. The company expects third quarter 2018 organic net sales growth of approximately 3.0% to 3.5%. Third quarter 2018 adjusted net earnings are now expected to be within a range of $0.98 to $1.00 per diluted share.
At 11:00 a.m. ET today, the company will webcast today's presentation and a questions and answer session with investors at: http://www.borgwarner.com/en/Investors/default.aspx.
BorgWarner Inc. (NYSE: BWA) is a global product leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles. With manufacturing and technical facilities in 66 locations in 18 countries, the company employs approximately 29,000 worldwide. For more information, please visit borgwarner.com.
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