BorgWarner Inc. (BWA) Q4 2022 Earnings Call Transcript

BorgWarner Inc. (NYSE:BWA) Q4 2022 Earnings Conference Call February 9, 2023 9:30 AM ET

Company Participants

Patrick Nolan - Vice President, Investor Relations

Frederic Lissalde - President, Chief Executive Officer and Director

Kevin Nowlan - Executive Vice President and Chief Financial Officer

Conference Call Participants

Colin Langan - Wells Fargo

Emmanuel Rosner - Deutsche Bank

James Picariello - BNP Paribas

Rod Lache - Wolfe Research

John Murphy - Bank of America

Luke Junk - Robert W. Baird

Adam Jonas - Morgan Stanley

Noah Kaye - Oppenheimer

Mark Delaney - Goldman Sachs

Patrick Nolan

This is Patrick Nolan. I apologize about the technical difficulties we've had this morning, but we're in a kickoff today's call. So we have issued our press release earlier this morning. It's posted on our website, borgwarner.com, on our homepage and on our Investor Relations home page.

Before we begin, I to inform in joining this call, we may make forward-looking statements which involves 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 period.

When you hear us say on a comparable basis, that is excluding the impact of FX, net M&A and other noncomparable items. And here say adjusted that means excluding noncomparable items. When you hear us say organic, that means excluding the impact of FX and net M&A. We also refer to our growth compared to on market. when he say market, that means the change in light vehicle and commercial vehicle production weighted for our geographic exposure. Please note that we've posted an earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion.

With that, I'm happy to turn the call over to Fred.

Frederic Lissalde

Thank you, Pat, and good morning, everyone. I have a bit of an allergic reaction this morning impacting my speech. So Kevin will cover the prepared remarks. I'll stay with you and answer the questions. Kevin?

Kevin Nowlan

All right. Thanks, Fred, and good morning, everyone. We're pleased to share our results for 2022 and provide an overall company update, starting on Slide 5.

We continue to be very proud of the strength of our sales relative to the overall industry. With about $15.8 billion in sales, we were up approximately 14% compared to our market, which was up a little less than 4%. Importantly, our BEV-related sales contributed meaningfully to this growth. We're also pleased with our solid margin performance, which we delivered despite the significant production volatility and inflationary headwinds that we faced during 2022.