Despite a substantial increase in sales, BorgWarner's earnings for the third quarter declined due to restructuring expenses. The Michigan-based auto-parts manufacturer reported earnings of $50 million, or 21 cents per share, for the quarter ending in September. This is a significant drop from $273 million, or $1.15 per share, in the same period last year. However, after excluding certain one-off items like restructuring expenses, BorgWarner's adjusted earnings were 98 cents per share, surpassing the average analyst estimate of 94 cents per share.
BorgWarner's third-quarter sales saw a 12% rise, reaching $3.62 billion. Although this fell short of the mean Wall Street estimate of $3.67 billion, the sales growth is still an encouraging sign for the company. BorgWarner is known for producing both traditional parts such as ignitions for gasoline and diesel engines, as well as battery systems, chargers, and other components for electric vehicles.
During the quarter, BorgWarner secured a contract from a leading North American automaker to supply bi-directional 800-volt onboard chargers for passenger-car battery-electric vehicles. This contract demonstrates BorgWarner's commitment to expanding its presence in the electric vehicle market and catering to the evolving needs of the industry.
Overall, while BorgWarner faced some challenges with restructuring expenses, the company is resilient and continues to make progress in its sales and product offerings. As we witnessed with the contract secured during the quarter, BorgWarner remains at the forefront of innovation and is poised to capitalize on the growing demand for electric vehicles.