BorgWarner Inc. reported a slight decline in net sales for the fiscal year ending December 31, 2024, totaling $14.1 billion, down 1% from $14.2 billion in 2023. The company's net earnings attributable to BorgWarner Inc. also decreased significantly to $338 million, or $1.63 per diluted share, compared to $625 million, or $2.70 per diluted share, in the previous year. This decline in profitability was attributed to several factors, including a $577 million impairment charge related to goodwill in its PowerDrive Systems and Battery & Charging Systems segments, as well as increased costs associated with restructuring efforts.
In terms of operational performance, BorgWarner's eProduct revenue, which includes products for electric and hybrid vehicles, rose to approximately $2.3 billion, representing 17% of total revenue, compared to $2.0 billion or 14% in 2023. Conversely, revenue from Foundational products, which support internal combustion engines, decreased to $11.8 billion, accounting for 83% of total revenue. The company also noted a restructuring plan aimed at addressing cost structures in its PowerDrive Systems segment, which is facing volatility in electric vehicle adoption.
BorgWarner's strategic developments included the completion of the spin-off of its Fuel Systems and Aftermarket segments into a separate publicly traded company, PHINIA, on July 3, 2023. This transaction was designed to be tax-free for shareholders and aimed to enhance the focus on BorgWarner's core automotive technologies. The company also engaged in several acquisitions, including the electric hybrid systems business of Eldor Corporation, which is expected to bolster its capabilities in power electronics.
Geographically, approximately 84% of BorgWarner's net sales were generated outside the United States, with significant contributions from China, Mexico, and various European countries. The company reported a total workforce of approximately 40,000 employees as of December 31, 2024, reflecting ongoing efforts to optimize its operations and adapt to market conditions. Looking ahead, BorgWarner anticipates modest growth in net new business-related sales, despite a projected slight decline in global industry production, and remains committed to investing in new product development and strategic initiatives to enhance its market position.
About BORGWARNER INC
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