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BorgWarner sees annual sales below estimates on supply snags, higher costs

Published 05/04/2023, 08:07 AM
Updated 05/04/2023, 08:11 AM
© Reuters. FILE PHOTO: BorgWarner Inc logo is seen displayed in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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(Reuters) - BorgWarner Inc (NYSE:BWA) on Thursday forecast full-year sales below analysts' estimates as supply chain issues continued to weigh on the auto supplier, sending the company's shares down nearly 2% in premarket trading.

The Michigan-based firm like other auto companies has been grappling with a shortage of certain raw materials and higher costs to procure them.

Supply headwinds, which began during the height of the pandemic, threaten to hurt demand for auto parts and comes at a time when carmakers are ramping up production.

© Reuters. FILE PHOTO: BorgWarner Inc logo is seen displayed in this illustration taken April 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

BorgWarner - whose clients include Volkswagen (ETR:VOWG_p), General Motors (NYSE:GM) and Ford - expects 2023 net sales between $17.1 billion and $17.9 billion, compared with Refinitiv estimates of $17.23 billion.

On an adjusted basis, the company earned $1.09 per share in the first quarter, compared with estimates of $1.11.

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