SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
FORM 8-K/A
(AMENDMENT NO. 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 10, 1999
BORG-WARNER AUTOMOTIVE, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-12162 13-3404508
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(State or Other (Commission File Number) IRS Employer
Jurisdiction of Identification
Incorporation) Number
200 South Michigan Avenue, Chicago, Illinois, 60604
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (312) 322-8500
<PAGE>
Item 7. Financial Statements and Exhibits.
(c) Exhibits
(99.1) Borg-Warner Automotive, Inc. Press Release dated February 8, 1999.
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Dated: February 10, 1999
BORG-WARNER AUTOMOTIVE, INC.
By: /s/ Laurene H. Horiszny
-----------------------------
Name: Laurene H. Horiszny
Title: Vice President, General Counsel
and Secretary
Immediate Release
Contact
Mary Brevard
Director, Investor Relations
& Communications
Phone: 312/322-8683
STRONG YEAR-END FOR BORG-WARNER AUTOMOTIVE;
FOURTH QUARTER EPS UP 18%
Chicago, Illinois, February 8, 1999 -- Borg-Warner Automotive, Inc. (NYSE: BWA)
today reported that 1998 fourth quarter earnings per share were up 18% to $1.35
per share. Strong performance in the company's engine-related systems business
drove full-year results, with strength across all operations during the fourth
quarter. Economic conditions in Asia and the General Motors strike reduced
full-year results.
Financial Results: For the 1998 fourth quarter, net income was $31.8 million or
$1.35 per share compared with $27.2 million, or $1.14 per share in 1997. Sales
for the quarter rose to $489 million from $467 million in 1997.
Full-year 1998 net income was $94.7 million or $4.00 per share, compared with
$103.2 million or $4.31 per share. Sales for 1998 totaled $1.84 billion
compared with $1.77 billion in 1997. Results for 1998 were reduced by
approximately $.90 per share due to Asia and the General Motors strike.
Comments and Outlook: "We expected to make a comeback in the second half of 1998
and we did," said John F. Fiedler, chairman and chief executive officer of Borg-
Warner Automotive. "Our fourth quarter performance was especially gratifying
because we delivered on investor expectations and reaffirmed the value of our
long-range strategy following a disappointing first half of the year."
"Going into 1999, we expect to see continued strength in our markets. For BWA,
changing engine technologies have replaced four-wheel drive as our near-term
growth catalyst. These changes are creating demand for our timing systems,
turbochargers and air management systems and components throughout the world.
Our presence in Europe, which doubled in 1998 to 17% of combined worldwide
sales, is especially important, because that is where much of the technology
change is occurring."
Operating Results: For the fourth quarter, revenue at Morse TEC rose 19% to
$100.6 million. The group experienced continued strong demand in North America
and Europe for its engine components and systems. The launch of new engine
timing systems for Chrysler and the growth of direct injected diesel engines
which require timing systems are expected to drive continued growth.
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Borg-Warner Automotive 1998 and Fourth Quarter Results - 2
Powertrain Systems' sales of $139.1 million were 11% below last year's strong
fourth quarter results. During the quarter, four wheel-drive transfer case
shipments for the Ford F-150 truck were down from the prior-year quarter, but
installation rates continued the improvement begun in the third quarter of
1998. Four-wheel-drive transfer case shipments to Korea during the fourth
quarter also showed improvement over the third quarter.
Automatic Transmission Systems' sales for the fourth quarter were up 2% to
$107.2 million, excluding sold product lines. Strong European demand and robust
sales to General Motors offset the impact of the Asian market, although some
improvement in Korea from the 1998 third to the fourth quarter was evident.
Sales for Air/Fluid Systems were up 8% to $89.2 million, due to Chrysler engine
and transmission programs. Transmission solenoid content on the new Chrysler
transmission, and increased demand for air induction modules for Chrysler LH
vehicles and other air management products both in North America and Europe are
expected to fuel future improvement.
Sales from the European turbocharger business were $53.1 million. During the
fourth quarter, Borg-Warner Automotive announced that it purchased the
turbocharger business of AG Kuhnle, Kopp & Kausch, and that it had signed a
definitive agreement to acquire Kuhlman Corporation, a major US supplier of
turbochargers. This acquisition is anticipated to close in early March, pending
a vote of Kuhlman Corporation shareholders. Turbocharged engines are becoming
increasingly popular in Europe because of high fuel prices and increasing
stringent air quality regulations. In the US, turbocharged engines are an
emerging solution to improve fuel performance for sport-utility vehicles and
light trucks.
Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems for automotive drivetrain applications
worldwide. The company operates manufacturing facilities in 12 countries
serving automakers in North America, Europe and Asia.
####
Statements contained in this news release may contain forward-looking statements
as contemplated by the 1995 Private Securities Litigation Reform Act that are
based on management's current expectations, estimates and projections. Words
such as "expects," "anticipates," "intends," "plans," "believes," "estimates,"
variations of such words and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements are subject to risks and
uncertainties, which could cause actual results to differ materially from those
projected or implied in the forward-looking statements. Such risks and
uncertainties include: fluctuations in domestic or foreign automotive
production, the continued use of outside suppliers by original equipment
manufacturers, fluctuations in demand for vehicles containing the Company's
products, general economic conditions, as well as other risks detailed in the
Company's filings with the Securities and Exchange Commission, including the
Cautionary Statements filed as Exhibit 99.1 to the Form 10-K for the fiscal year
ended December 31, 1997.
Note: Borg-Warner Automotive press releases are available on the Internet at
http://www.bwauto.com or via Company News On-Call:http://www.prnewswire.com, or
via fax, 800-758-5804, ext. 120941.
<PAGE>
<TABLE>
<CAPTION>
Borg-Warner Automotive, Inc.
Consolidated Statement of Operations (Unaudited)
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(millions of dollars, except per share data)
Three Twelve
Months Ended Months Ended
December 31, December 31,
1998 1997 1998 1997
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<S> <C> <C> <C> <C>
Net sales $489.2 $467.0 $1,836.8 $1,767.0
Cost of Sales 385.2 359.1 1,450.7 1,375.4
Depreciation 17.3 18.9 74.8 70.4
Selling, general and admini-
strative expenses 29.3 36.5 135.1 132.0
Minority interest (0.3) 1.4 2.1 3.2
Goodwill amortization 4.1 4.3 16.8 16.7
Equity in affiliate earnings and
other income (1.4) (1.5) (10.3) (13.2)
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Earnings before interest expense,
finance charges and taxes 55.0 48.3 167.6 182.5
Interest expense and
finance charges 6.3 5.6 26.9 24.6
Provision for income taxes 16.9 15.5 46.0 54.7
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Net earnings $31.8 $27.2 $94.7 $103.2
=================================================
Net earnings per share-basic $1.35 $1.14 $4.03 $4.35
=================================================
Net earnings per share
-diluted $1.35 $1.14 $4.00 $4.31
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Average shares outstanding
-basic (in millions) 23.5 23.7 23.5 23.7
==================================================
Average shares outstanding -
diluted (in millions) 23.7 23.9 23.7 23.9
==================================================
Borg-Warner Automotive, Inc.
Sales by Operating Group (Unaudited)
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(millions of dollars) Fourth Fourth % Twelve Twelve %
Quarter Quarter Change Months Months Change
1998 1997 1998 1997
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Powertrain Systems $139.1 $156.4 -11.1% $518.8 $613.6 -15.4%
Automatic Transmission Systems 107.2 105.1 2.0% 402.6 418.1 -3.7%
Morse TEC 100.6 84.8 18.6% 353.3 324.1 9.0%
Air/Fluid Systems 89.2 82.9 7.6% 351.4 342.4 2.6%
AG Kuhnle, Kopp & Kausch 53.1 24.8 N/A 182.9 24.8 N/A
Businesses Sold 10.6 27.4 N/A 73.5 101.4 N/A
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Subtotal 499.8 481.4 3.8% 1,882.5 1,824.4 3.2%
Eliminations (10.6) (14.4) -26.4% (45.7) (57.4) -20.4%
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Total $489.2 $467.0 4.8% $1,836.8 $1,767.0 4.0%
=================================================
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