BorgWarner Inc. (BWA) said that it has increased its 2017 full year organic growth guidance. Full year net sales are expected to be $9.67 billion - $9.70 billion, implying organic net sales growth of 9.0% to 9.5%. The acquisition of Sevcon is expected to increase full year net sales by about $15 million. Foreign currencies are expected to increase sales by approximately $37 million, due to the appreciation of the Euro. The divested Remy light vehicle aftermarket business contributed net sales of approximately $255 million in 2016.
Net earnings for the year are now expected to be within a range of $3.81 to $3.83 per share, with the increase in guidance primarily due to higher than previously expected sales. Excluding the impact of non-comparable items but including the dilutive impact of Sevcon, operating margin is expected to improve by about 20 to 30 basis points.
Analysts polled by Thomson Reuters expect the company to report earnings of $3.72 per share and revenues of $9.42 billion for fiscal year 2017. Analysts' estimates typically exclude special items.
The company expects fourth quarter 2017 organic net sales growth of 5.0% to 6.5% compared with fourth quarter 2016 proforma net sales of $2.24 billion. The acquisition of Sevcon is expected to increase fourth quarter net sales by approximately $15 million. Foreign currencies are expected to increase sales by approximately $85 million. The divested Remy light vehicle aftermarket business contributed net sales of approximately $20 million in the fourth quarter 2016. Net earnings are expected to be within a range of $0.99 to $1.01 per share. Analysts project fourth-quarter earnings of $0.98 per share.
Net earnings in third quarter 2017 were $185 million, or $0.88 per share, compared with $83 million, or $0.39 per share in third quarter 2016. Net earnings in third quarter 2017 included non-comparable items of ($0.08) per diluted share.
Net sales were $2.416 billion in third quarter 2017, up 9.1% from $2.214 billion in third quarter 2016. Excluding the impact of foreign currencies and the sale of the Remy light vehicle aftermarket business, net sales were up 10.8% compared with third quarter 2016.
Analysts expected the company to report earnings of $0.88 per share and revenues of $2.26 billion for the third-quarter.
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