BorgWarner Inc. (NYSE:BWA) Q3 2024 Earnings Conference Call October 31, 2024 9:30 AM ET

Company Participants

Patrick Nolan – Vice President-Investor Relations
Frédéric Lissalde – President and Chief Executive Officer
Craig Aaron – Executive Vice President and Chief Financial Officer

Conference Call Participants

Colin Langan – Wells Fargo
Dan Levy – Barclays
Adam Jonas – Morgan Stanley
John Murphy – Bank of America
Luke Junk – Baird
James Picariello – BNP Paribas
Mark Delaney – Goldman Sachs
Emmanuel Rosner – Wolfe Research

Operator

Good morning. My name is Connie, and I will be your conference facilitator. At this time, I would like to welcome everyone to the BorgWarner 2024 Third Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. [Operator Instructions]

I would now like to turn the call over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

Patrick Nolan

Thank you, Connie, and good morning, everyone. Thank you for joining us today. We issued our earnings release earlier this morning. It’s posted on our website, borgwarner.com, both on our home page and on our Investor Relations home page. With regard to our Investor Relations calendar, we will be attending multiple conferences between now and our next earnings release. Please see the Events section of our Investor Relations home page for a full list.

Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. During today’s presentation, we will highlight certain non-GAAP measures in order to provide a clearer picture of how the core business performed and for comparison purposes with prior periods. When you hear us say on a comparable basis, that means excluding the impact of FX, net M&A and other non-comparable items. When you hear us say adjusted, that means excluding non-comparable items. When you hear us say organic, that means excluding the impact of FX and net M&A.

We will also refer to our incremental margin performance. Our incremental margin is defined as the organic change in our adjusted operating income divided by the organic change in our sales. Our all incremental includes our planned investment in ER&D, any impact from net inflationary items and other cost items. Lastly, we refer to our growth compared to our market. When you hear us say market, that means the change in light and commercial vehicle production weighted for our geographic exposure. Please note that we’ve posted today’s earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion.