$950 Million in New BorgWarner Business Expected
16 November 2000
$950 Million in New BorgWarner Business Expected; New Engine and Four-Wheel Drive Programs Drive Growth for 2001-2003CHICAGO, Nov. 15 BorgWarner Inc. today announced $950 million of expected new powertrain business for 2001 through 2003. About 43% of the new business is anticipated to be engine-related and another 40% is expected in four-wheel drive systems. The company is a product leader in highly engineered components and systems for engines, automated transmissions and four-wheel drive systems for vehicle makers worldwide. "Our technology is clearly the strong growth catalyst for this net new business," said John F. Fiedler, chairman and chief executive officer of BorgWarner. "We believe that we can outpace the growth in our industry because our technology addresses the needs of our vehicle-maker customers to improve fuel economy, air quality and to provide solutions to the growing concern about vehicle stability. By leveraging our powertrain expertise worldwide, we expect to broaden our customer base and increase our content in new vehicle programs." Fiedler noted that the anticipated new business represents a 12% increase over the previous three-year period, a significant accomplishment given the impact of the weak euro and some customer delays and volume weakness in the company's new business for 2001. "Our investment in research and development is evident in the new business momentum we are building. The anticipated new business over the coming three-year period reflects continued strength in our engine products, the expansion of our four-wheel drive business and the opening of an entirely new market for us, with our first business for innovative transmission technology just beginning at the end of the period. We expect that the value of each year's business will increase over the three years." Significant programs during the period include chain-driven timing systems for Honda, Ford and DaimlerChrysler engines; next generation turbochargers for European customers; electronic engine cooling systems for a major North American sport-utility and light truck maker; InterActive Torque Management(TM) (ITM) 4WD systems for Acura; and 4WD transfer cases for General Motors and Hyundai. Also included are a number of transmission programs for more efficient five-and six-speed automatic transmissions; continuously variable transmissions in Europe, North America and Japan; and dual clutch and controls modules for new concept automated manual transmissions in Europe. Fiedler also reiterated that the company expects to deliver full-year 2000 earnings above last year's level of $5.07 per share, exclusive of a restructuring charge, and that growth from continuing operations in 2001 is expected to be about 3% to 5%, including the new business.