In a sign of difficult economic times, BorgWarner Incorporated posted this morning a negative swing of -$97 million in Q1, which is viewed by analysts as a good performance these days in the depressed auto supplier sector.
The word’s largest maker of automatic transmissions, including extremely efficient dual-clutch versions that are being adapted by most automakers, lost 6 cents a share or $7 million. This compares with earnings of 75 cents a share or almost $90 million in Q1 2008, which was before the Great Recession took hold and automotive production was slashed globally.
The loss was actually worse, at -12 cents a share, since the company excluded non-recurring items, including a 15 cent a share credit it took for shutting its fabled Muncie, Indiana, transmission plant. Still, losing only $14 million is considered a victory in the current economic climate, which can be likened to requiring the management team to running–and completing–a marathon in a hurricane.
“The restructuring actions we took in 2008, while difficult, have already begun to yield positive financial results,” said Timothy Manganello, Chairman and CEO.
The company has eliminated almost one quarter of its work force since the middle of last year, in a bid to remain profitable. (more…)