BorgWarner Inc. (NYSE: BWA) and Delphi Technologies PLC (NYSE: DLPH) today announced that the companies have amended certain terms of the definitive transaction agreement they originally entered into on January 28, 2020 under which BorgWarner will acquire Delphi Technologies in an all-stock transaction. The amendment represents a resolution to BorgWarner's previously stated assertion that Delphi Technologies materially breached the definitive transaction agreement by drawing down on its full $500 million revolving credit facility, which Delphi Technologies disputed on the basis that BorgWarner unreasonably withheld and conditioned its consent.
BorgWarner is ready for the future of mobility with the opening of its newest high-tech lab at its Noblesville Technical Center in Noblesville, Indiana. The technical center, a key facility in BorgWarner's mission to develop clean, energy-efficient propulsion systems, enables the company to develop, build, test, and validate prototypes of its electric product portfolio under one roof, creating cost synergies, increasing cross-functional collaboration, and improving efficiency throughout the product development and testing process. https://www.youtube.com/watch?v=74leJq6Yfeo
BorgWarner, a global leader in clean and efficient technology solutions for combustion, hybrid and electric vehicles, announced that it is Great Place to Work-Certified™ in the United States and Mexico. Certification is a significant achievement. Using validated employee feedback gathered with Great Place to Work's rigorous, data-driven For All methodology, certification confirms 7 out of 10 employees have a consistently positive experience at BorgWarner. Great Place to Work is the global authority on workplace culture, employee experience and the leadership behaviors proven to deliver market-leading revenue and increased innovation.
Shares of Delphi Technologies (NYSE: DLPH), a leading global supplier of products and solutions to the automotive and commercial vehicle market, jumped 15% Wednesday morning after the company reached an agreement with BorgWarner (NYSE: BWA) to amend terms of their buyout deal. Investors may recall BorgWarner's previous assertion that Delphi Technologies breached the original transaction agreement, which they entered into on Jan. 28, when it drew down on its $500 million revolving credit facility. As of today, the two companies have amended certain terms of the deal, and BorgWarner will acquire Delphi in an all-stock transaction.
BWA earnings call for the period ending March 31, 2020.
While General Motors (GM) and BorgWarner (BWA) top first-quarter 2020 earnings estimates, Genuine Parts (GPC) falls short amid coronavirus woes.
BorgWarner on Friday forecast full-year net sales of up to $8 billion and said it expects to generate positive free cash flow of between $100 million and $300 million for the year. The auto parts maker expects 2020 revenue of between $7.25 billion and $8 billion, the midpoint of which is below analysts' estimates of $7.93 billion, according to Refinitiv data. BorgWarner last week reported a smaller-than-expected fall in first-quarter profit, while lowering its full-year sales outlook by about 23% at the mid-point to $7.63 billion, as several automakers cut production drastically due to the coronavirus crisis.
While the coronavirus pandemic has hit BorgWarner Inc hard, investors want to know more about the status of its pending acquisition of Delphi Technologies Plc and tornado damage at the auto parts supplier's South Carolina plant when it reports first-quarter results on Wednesday. The fate of the deal to buy UK-based Delphi was thrown into question on March 31 when BorgWarner threatened to walk away after Delphi drew down on a credit line without BorgWarner's approval. The January deal valued Delphi at $3.3 billion.
BorgWarner Inc. said Wednesday it reached an agreement with Delphi Technologies PLC to amend the terms of its buyout deal, that will allows Delphi to draw on its revolving credit facility. Shares of Delphi, which specializes in propulsion technologies, soared 10% in premarket trading and auto components maker BorgWarner's stock edged up 0.2%. On March 31, Delphi's stock had plunged 22% after BorgWarner said Delphi's decision to draw fully on its $500 million revolver represented a material breach of the buyout agreement, which was announced in late January. On Wednesday, BorgWarner said it consents to Delphi's draw down, as long as its revolver borrowings at the time of the buyout's closing doesn't exceed $225 million. The companies also agreed to change the terms of the buyout, with Delphi shareholders now set to receive 0.4307 BorgWarner shares for each Delphi stock they own, down 5% from an original share exchange ratio of 0.4534. Year to date, Delphi's stock has lost 23.6% through Tuesday and BorgWarner shares have dropped 37.9%, while the S&P 500 has declined 11.2%.
Heightening coronavirus fears, along with supply-chain inefficiencies and higher research and development costs, are likely to have clipped BorgWarner's (BWA) margins in Q1.
Here are 5 stocks added to the Zacks Rank 5 (Strong Sell) List today
Upbeat car sales data paves the way for auto parts stocks to move higher. Here are three trading ideas to consider.
Cascadia Motion is pleased to release the largest inverter in their product line, the PM500. This dual-motor inverter can deliver a combined 700kW (940hp) worth of peak power to the motors by way of 840V capability and 1400Arms combined phase current. Independent control of each motor allows the PM500 to be utilized on dual-stack motors (two motor cores with singular output) as well as torque vectoring applications, where torque is varied between driver and passenger side wheels to aid cornering.
BorgWarner Inc. (NYSE: BWA) today reported first quarter results.
BorgWarner (BWA) projects net sales of $7.25-$8 billion for 2020.
Delphi Technologies PLC (NYSE: DLPH) ("Delphi Technologies" or the "Company") today announced financial results for its first quarter 2020.
Q1 2020 BorgWarner Inc Earnings Call
BorgWarner partnered with GAC Motor to introduce its next generation of variable cam timing actuators – intelligent cam torque actuation (iCTA) – to GAC's combustion and some models with hybrid applications. As emission standards becomes stricter, Chinese auto manufacturers are seeking more efficient and tunable intake and exhaust technologies to meet future emission regulations. A great addition to BorgWarner's variable cam timing (VCT) technology, iCTA blends the best attributes of cam torque actuation (CTA) and torsional assist (TA) phaser technologies for better efficiency and improved fuel economy, offering automakers the opportunity to meet challenging State VI emission standards. iCTA is a device that varies engine cam timing at a fast actuation rate with low oscillation. It will first be installed on GAC's new compact SUV, the GS3. GAC began mass-producing engines with this BorgWarner technology in June, 2019.
BorgWarner (BWA) delivered earnings and revenue surprises of 57.14% and 13.14%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Overall first-quarter 2020 earnings and revenues for the auto sector are projected to be down 88.1% and 11.9% year over year, respectively.