WASHINGTON (dpa-AFX) - BorgWarner Inc. (BWA) said that it expects a first quarter 2019 organic net sales decline of 5.5% to 7.5%, compared with first quarter 2018 net sales of $2.784 billion. Foreign currencies are expected to decrease sales by approximately $130 million. Net earnings are expected to be within a range of $0.92 to $0.96 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $1.13 per share and revenues of $2.74 billion. Analysts' estimates typically exclude special items.
The company has provided its initial 2019 full year guidance. Full year organic growth over the company's estimated light vehicle market exposure is expected to be 250 to 400 basis points. Net sales are expected to be in the range of $9.90 billion to $10.37 billion. This implies year over year organic sales change of down 2.5% to up 2.0%. Net earnings are expected to be within a range of $4.00 to $4.35 per diluted share. Wall Street currently is looking for fiscal year 2019 earnings of $4.57 per share on annual revenues of $10.83 billion.
BorgWarner Inc. announced its three-year net new business backlog of $2.0 billion to $2.4 billion.
The company expects its net new business backlog to drive organic growth over the company's estimated light vehicle market exposure of 5.0% - 6.0% for 2019 through 2021:
Net new business within a range of $430 million to $580 million in 2019, $750 million to $875 million in 2020 and $800 million to $950 million in 2021.
Asia, the Americas and Europe are expected to account for approximately 60%, 25% and 15%, respectively, of the total net new business backlog over the three-year period. Approximately 50% is expected in China.
The net new business backlog represents growth across all propulsion categories with combustion, hybrid and electric vehicles expected to account for approximately 20%, 70% and 10%, respectively, of the total net new business backlog over the three-year period.
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