AUBURN
HILLS, Mich., July 3, 2023
/PRNewswire/ -- BorgWarner Inc. (NYSE: BWA) today announced
the successful completion of the spin-off of its Fuel Systems and
Aftermarket segments into a separate, publicly-traded company named
PHINIA (NYSE: PHIN).
BorgWarner Announces Completion of PHINIA
Spin-Off
"A tremendous amount of work has gone into bringing us to where
we are today," said Frédéric Lissalde, President and Chief
Executive Officer, BorgWarner Inc. Two years ago, BorgWarner
announced Charging Forward, the company's strategy to
accelerate its transition to electrification. That strategy
included the disposition of $3B to
$4B in combustion-related revenue by
2025. The completion of the spin-off of PHINIA combined with the
2022 sale of the North American controls business represents the
completion of this key pillar of the Charging Forward
strategy. "This important step allows both BorgWarner and PHINIA to
focus on and continue to pursue their respective strategies. We
wish the PHINIA team the best as they begin their own journey as a
new, independent company," said Lissalde.
At BorgWarner's recent Investor Relations Day at the New York
Stock Exchange on June 6, 2023,
Charging Forward 2027 was unveiled. This next phase of the
strategy focuses on further advancing BorgWarner's position as a
technology leader in eProducts and maximizing the value of its
foundational portfolio. As part of Charging Forward
2027, the company established 2027 targets of achieving more
than $10 billion in eProduct revenue,
delivering approximately 7% adjusted operating margin on its
eProduct portfolio, and sustaining its strong foundational
operating margins. Presentation materials and the webcast of the
event can be found on borgwarner.com/investors.
Evercore acted as BorgWarner's lead financial advisor for the
spin-off, and BofA Securities, Inc. also acted as a financial
advisor. Foley & Lardner LLP and Freshfields Bruckhaus Deringer
provided legal advice to the company.
About BorgWarner
For more than 130 years, BorgWarner has been a transformative
global product leader bringing successful mobility innovation to
market. Today, we're accelerating the world's transition to
eMobility — to help build a cleaner, healthier, safer future for
all.
Forward Looking Statements: This release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
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other than statements of historical fact, contained or incorporated
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may occur in the future regarding our financial position, business
strategy and measures to implement that strategy, including changes
to operations, competitive strengths, goals, expansion and growth
of our business and operations, plans, references to future success
and other such matters, are forward-looking statements. Accounting
estimates, such as those described under the heading "Critical
Accounting Policies and Estimates" in Item 7 of our most recently
filed Annual Report on Form 10-K ("Form 10-K"), are inherently
forward-looking. All forward-looking statements are based on
assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and
expected future developments, as well as other factors we believe
are appropriate under the circumstances. Forward-looking statements
are not guarantees of performance, and the Company's actual results
may differ materially from those expressed, projected or implied in
or by the forward-looking statements.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this release.
Forward-looking statements are subject to risks and uncertainties,
many of which are difficult to predict and generally beyond our
control, that could cause actual results to differ materially from
those expressed, projected or implied in or by the forward-looking
statements. These risks and uncertainties, among others, include:
supply disruptions impacting us or our customers, such as the
current shortage of semiconductor chips that has impacted original
equipment manufacturer ("OEM") customers and their suppliers,
including us; commodity availability and pricing, and an inability
to achieve expected levels of recoverability in commercial
negotiations with customers concerning these costs; competitive
challenges from existing and new competitors including OEM
customers; the challenges associated with rapidly changing
technologies, particularly as relates to electric vehicles, and our
ability to innovate in response; uncertainties regarding the extent
and duration of impacts of matters associated with the COVID
19/coronavirus pandemic, including additional production
disruptions; the difficulty in forecasting demand for electric
vehicles and our electric vehicles revenue growth; potential
disruptions in the global economy caused by Russia's invasion of Ukraine; the ability to identify targets and
consummate acquisitions on acceptable terms; failure to realize the
expected benefits of acquisitions on a timely basis; the
possibility that the spin-off transaction will not achieve its
intended benefits; the failure to promptly and effectively
integrate acquired businesses; the potential for unknown or
inestimable liabilities relating to the acquired businesses; our
dependence on automotive and truck production, both of which are
highly cyclical and subject to disruptions; our reliance on major
OEM customers; fluctuations in interest rates and foreign currency
exchange rates; our dependence on information systems; the
uncertainty of the global economic environment; the outcome of
existing or any future legal proceedings, including litigation with
respect to various claims, or governmental investigations,
including related litigation; future changes in laws and
regulations, including, by way of example, taxes and tariffs, in
the countries in which we operate; impacts from any potential
future acquisition or disposition transactions; and the other risks
noted in reports that we file with the Securities and Exchange
Commission, including Item 1A, "Risk Factors" in our most recently
filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not
undertake any obligation to update or announce publicly any updates
to or revisions to any of the forward-looking statements in this
release to reflect any change in our expectations or any change in
events, conditions, circumstances, or assumptions underlying the
statements.
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SOURCE BorgWarner