On Oct. 27, vehicle powertrain parts maker BorgWarner
- 5.2% revenue growth in the engine segment, partially offset by 8% decline in the drivetrain segment, led to a meager rise in sales of 0.8%.
- Gross margin continued to be harmed by higher raw material costs, including nickel, steel, copper, aluminum, and plastic resin.
- Restructuring expenses along with the higher cost of sales led to 36.4% decline in GAAP EPS, to $0.68.
- Regardless of the results, the stock is still well-loved in Motley Fool CAPS, with 13 all-stars rating it "outperform," versus zero "underperform" ratings.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$1,104 |
$1,059.8 |
$1,050.9 |
0.8% |
|
Net Profit |
-- |
$39.2 |
$61.4 |
(36.2%) |
|
EPS |
$0.87 |
$0.7 |
$1.1 |
(36.4%) |
|
Diluted Shares |
-- |
$58.0 |
$57.5 |
0.9% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
17.30% |
19.81% |
(2.51) |
|
Operating Margin |
5.72% |
8.61% |
(2.89) |
|
Net Margin |
3.70% |
5.84% |
(2.14) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$138.3 |
$139.5 |
(0.9%) |
|
Accounts Rec. |
$695.6 |
$660.8 |
5.3% |
|
Inventory |
$379.9 |
$347.8 |
9.2% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable * |
$794.4 |
$740.6 |
7.3% |
|
Long-Term Debt |
$512.5 |
$626.6 |
(18.2%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$270.7 |
$260.8 |
3.8% |
|
Capital Expenditures |
$191.9 |
$179.7 |
6.8% |
|
Free Cash Flow |
$78.8 |
$81.1 |
(2.8%) |
Find out why Fools always follow the money.
Related Companies:
-
Tomkins
(NYSE:TKS) -
TRW Automotive Holdings
(NYSE:TRW) -
Gentex
(NASDAQ:GNTX)
Related Foolishness:
- Foolish Forecast: Boogie-Woogie BorgWarner
- Not Time Yet to Part With ArvinMeritor
- Are You Invested in the Right Stocks?
BorgWarner is a Motley Fool Stock Advisor selection. Sign up today for a free report.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
