Exhibit 99.1
Immediate Release
Contact: Patrick Nolan
248.754.0884
BorgWarner Reports Second Quarter 2024 Results
Increases Full-Year Adjusted Operating Margin and EPS Guidance
Auburn Hills, Michigan, July 31, 2024 – BorgWarner Inc. (NYSE: BWA) today reported second quarter
results.
Strong Second Quarter Margin and Free Cash Flow, Increasing Full Year Adjusted Operating
Margin and EPS Guidance• BorgWarner achieved an adjusted operating margin performance of 10.4% during the second
quarter, which equated to a U.S. GAAP operating margin of 8.2%. The Company also generated
net cash provided by operating activities of $462 million and $297 million in free cash flow,
despite a modest decline in the Company’s weighted light and commercial vehicle markets.
• The Company increased its mid-point full year adjusted operating margin guidance by 30 basis
points and adjusted earnings per share guidance by approximately $0.07 per share. This isbeing driven by BorgWarner’s technology-focused portfolio and strong cost controls.
BorgWarner reduced its full year mid-point net sales guidance by $400 million primarily due to alower market production outlook, weaker foreign currencies and slower year-over-year growth in
eProduct sales.
• BorgWarner intends to repurchase $300 million of the Company’s outstanding shares during thesecond half of 2024. After these repurchases, BorgWarner will have repurchased $577 million of
its outstanding shares since the start of the fourth quarter of 2023.
Business Update
The Company announced a number of items that are intended to support its future long-term
profitable growth including:•Introduction of a new business unit structure that we expect to drive synergies, strengthen the
Company’s product and go to market strategy and improve reporting transparency for ourstockholders. This new business unit structure was effective July 1st, 2024.

•

Restructuring of the Company’s ePropulsion segment, which is expected to align the segment’s
cost structure to current market dynamics while preserving its long-term profitable growthpotential. This restructuring is expected to result in annual cost savings of approximately $100
million by 2026.

•

Multiple new business awards across its combustion, hybrid and battery electric vehicle (BEV)
portfolio. BorgWarner booked three electric cross differential, a high-voltage eFan and two
exhaust gas recirculation awards. These awards are primarily expected to launch in 2026 and
2027.

1

Second Quarter Highlights (continuing operations basis):• U.S. GAAP net sales of $3,603 million, a decrease of 2% compared with second quarter2023.
◦ Excluding the impact of foreign currencies and the impact of net M&A, organic sales
were down 0.3% compared with second quarter 2023.
• U.S. GAAP net earnings of $1.39 per diluted share.
◦ Excluding $0.20 of net gains per diluted share related to non-comparable items(detailed in the table below), adjusted net earnings were $1.19 per diluted share.
• U.S. GAAP operating income of $297 million, or 8.2% of net sales.
◦ Excluding $79 million of pretax expenses related to non-comparable items, adjusted
operating income was $376 million, or 10.4% of net sales.
• Net cash provided by operating activities of $462 million.
◦ Free cash flow of $297 million.
Financial Results (continuing operations basis):
The Company believes the following table is useful in highlighting non-comparable items that impacted its
U.S. GAAP net earnings per diluted share. The non-comparable items presented below are calculated
after tax using the corresponding effective tax rate discrete to each item and the weighted average
number of diluted shares for the periods presented. The Company defines adjusted earnings per diluted
share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger,
acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses
not reflective of the Company’s ongoing operations, and related tax effects.
Three Months Ended June 30,2024

Earnings per diluted share$

Six Months Ended June 30,

2023

1.39

$

2024

0.97

$

2023

2.32

$

1.69

Non-comparable items:
Restructuring expense

0.08

0.03

0.14

0.04

Commercial contract settlement

0.05

—

0.05

—

Adjustments associated with Spin-Off related balances

0.05

—

0.05

—

Accelerated depreciation

0.03

—

0.03

0.01

Merger and acquisition expense

—

0.03

0.02

0.07

Gain on sale of businesses—(0.02)(0.01)(0.02)

Service and lease agreement termination

—

0.03

—

0.03

Gain on sale of assets—(0.02)—(0.02)

Unrealized loss on equity and debt securities

—

0.18

0.01

0.23

Corporate synergy from spin-off

—

0.02

—

0.03

Tax adjustments(0.42)(0.17)(0.42)(0.18)

Other non-comparable items

0.01

0.01

0.03

(0.01)

Adjusted earnings per diluted share

$

1.19

$

1.06

$

2.22

$

1.87

Net sales were $3,603 million for the second quarter 2024, a decrease of 2% compared with net sales of$3,671 million for the second quarter 2023, primarily due to declining market production volumes and thenegative impact of foreign currencies. Net earnings for the second quarter 2024 were $315 million, or$1.39 per diluted share, compared with net earnings of $228 million, or $0.97 per diluted share, for the2second quarter 2023. Adjusted net earnings per diluted share for the second quarter 2024 were $1.19, up
from adjusted net earnings per diluted share of $1.06 for the second quarter 2023. Adjusted net earnings
for the second quarter 2024 excluded net non-comparable items of $0.20 per diluted share, while
adjusted net earnings for the second quarter 2023 excluded net non-comparable items of $(0.09) per
diluted share. These items are listed in the table above, which is provided by the Company forcomparison with other results and the most directly comparable U.S. GAAP measures. The increase inadjusted net earnings per diluted share was primarily due to higher adjusted operating margin driven by
the Company’s cost controls, a lower effective tax rate and a lower share count.
Full Year 2024 Guidance: The Company has updated full year sales, margin and EPS guidance. Net
sales for 2024 are expected to be in the range of $14.1 billion to $14.4 billion, compared to theCompany’s prior guidance of $14.4 billion to $14.9 billion and 2023 sales of approximately $14.2 billion.
The Company expects its weighted light and commercial vehicle markets to be in the range of down 3%
to down 2% year-over-year in 2024, a decrease from the Company’s prior guidance of flat to down 2.5%.
The Company’s sales guidance implies a year-over-year increase in organic sales of approximately 0.5%
to 2.5%, or estimated outgrowth above market production of approximately 350 to 450 basis points. The
Company expects its 2024 eProduct sales to be near the low-end of the Company’s prior $2.5 billion to$2.8 billion guidance, up from approximately $2.0 billion in 2023. Foreign currencies are expected toresult in a year-over-year decrease in sales of approximately $175 million primarily due to the weakeningof the Chinese Renminbi, the Korean Won and the Euro against the U.S. dollar. The acquisitions of SSE
and the Electric Hybrid Systems business segment of Eldor Corporation are expected to increase yearover-year sales by approximately $30 million.
Operating margin for the full year is expected to be in the range of 8.2% to 8.3%. Excluding the impact of
non-comparable items, adjusted operating margin is expected to be in the range of 9.6% to 9.8%, up
from the Company’s prior guidance of 9.2% to 9.6%. Net earnings are expected to be within a range of$3.88 to $4.05 per diluted share. Excluding the impact of non-comparable items, adjusted net earnings
are expected to be within a range of $3.95 to $4.15 per diluted share, up from the Company’s priorguidance of $3.80 to $4.15 per diluted share. The Company’s full-year EPS guidance includes the
expected impact of the Company’s intended share repurchases of $300 million during the second half of2024. Full-year operating cash flow is expected to be in the range of $1,325 million to $1,375 million,
while free cash flow is expected to be in the range of $475 million to $575 million.
At 9:30 a.m. ET today, a brief conference call concerning second quarter 2024 results and guidance will
be webcast at: https://www.borgwarner.com/investors. Additionally, an earnings call presentation will beavailable at https://www.borgwarner.com/investors.
For more than 130 years, BorgWarner Inc. (NYSE: BWA) has been a transformative global product leader
bringing successful mobility innovation to market. Today, we’re accelerating the world’s transition toeMobility -- to help build a cleaner, healthier, safer future for all.
###3

Forward Looking Statements: This press release contains forward-looking statements as contemplatedby the 1995 Private Securities Litigation Reform Act that are based on management’s current outlook,
expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “could,”“designed,” “effect,” “estimates,” “evaluates,” “expects,” “forecasts,” “goal,” “guidance,” “initiative,”“intends,” “may,” “outlook,” “plans,” “potential,” “predicts,” “project,” “pursue,” “seek,” “should,” “target,”“when,” “will,” “would,” and variations of such words and similar expressions are intended to identify suchforward-looking statements. Further, all statements, other than statements of historical fact contained inthis press release that we expect or anticipate will or 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 tofuture 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 mostrecently-filed Annual Report on Form 10-K (“Form 10-K”), are inherently forward-looking. All forwardlooking statements are based on assumptions and analyses made by us in light of our experience andour perception of historical trends, current conditions and expected future developments, as well as otherfactors we believe are appropriate under the circumstances. Forward-looking statements are notguarantees of performance, and the Company’s actual results may differ materially from thoseexpressed, 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 thedate of this press release. Forward-looking statements are subject to risks and uncertainties, many ofwhich 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, 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 newcompetitors, including original equipment manufacturer (“OEM”) customers; the challenges associatedwith rapidly changing technologies, particularly as they relate to electric vehicles, and our ability toinnovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles
revenue growth; potential disruptions in the global economy caused by wars or other geopoliticalconflicts; 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 our 2023 tax-free spin-off of ourformer Fuel Systems and Aftermarket segments into a separate publicly traded company 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, which is highly cyclical and subject to disruptions; our reliance on major OEM
customers; impacts of any future strikes involving any of our OEM customers and any actions such OEM
customers take in response; fluctuations in interest rates and foreign currency exchange rates; ourdependence on information systems; the uncertainty of the global economic environment; the outcome ofexisting or any future legal proceedings, including litigation with respect to various claims, orgovernmental 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

4

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 press release toreflect any change in our expectations or any change in events, conditions, circumstances, orassumptions underlying the statements.
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 press release to reflect any change in our expectations or any
change in events, conditions, circumstances, or assumptions underlying the statements.

5

BorgWarner Inc.
Condensed Consolidated Statements of Operations (Unaudited)(in millions, except per share amounts)
Three Months Ended June 30,
2024

Net sales$

Cost of sales

Six Months Ended June 30,

2023

3,603

$

2,918

2024

3,671

$

2023

7,198

$

7,054

2,991

5,869

5,797

Gross profit

685

680

1,329

1,257

Gross margin

19.0 %

18.5 %

18.5 %

17.8 %

Selling, general and administrative expenses

341

334

670

633

Restructuring expense

25

9

44

12

Other operating expense, net

22

4

23

5

297

333

592

607

Equity in affiliates’ earnings, net of tax

(12)

(12)

(17)

(13)

Unrealized loss on equity and debt securities

—

54

2

69

Interest expense, net

8

12

13

22

Other postretirement expense

3

3

6

5

298

276

588

524

(31)

30

31

97

Net earnings from continuing operations

329

246

557

427

Net (loss) earnings from discontinued operations

(12)

(24)

(19)

25

317

222

538

452

Operating income

Earnings from continuing operations before income taxes andnoncontrolling interest(Benefit) provision for income taxes

Net earnings
Net earnings from continuing operations attributable tononcontrolling interest

14

Net earnings attributable to BorgWarner Inc.

18

29

31

$

303

$

204

$

509

$

421

$

315

$

228

$

528

$

396

$

303

$

204

$

509

$

421

$

1.39

$

0.98

$

2.33

$

1.70

Amounts attributable to BorgWarner Inc.:
Net earnings from continuing operations
Net (loss) earnings from discontinued operations(12)

Net earnings attributable to BorgWarner Inc.
Earnings per share from continuing operations — basic(Loss) earnings per share from discontinued operations —
basic

(24)

(0.05)(19)(0.10)

25(0.08)

0.11

Earnings per share attributable to BorgWarner Inc. — basic

$

1.34

$

0.88

$

2.25

$

1.81

Earnings per share from continuing operations — diluted

$

1.39

$

0.97

$

2.32

$

1.69

(Loss) earnings per share from discontinued operations —diluted(0.05)

Earnings per share attributable to BorgWarner Inc. — diluted

$

1.34

(0.10)$

0.87(0.08)
$

2.24

0.11
$

1.80

Weighted average shares outstanding:
Basic

226.1

233.4

227.0

233.1

Diluted

227.2

234.4

227.9

234.3

6

BorgWarner Inc.
Net Sales by Reportable Segment (Unaudited)(in millions)Three Months Ended June 30,
2024

Air Management$

Drivetrain & Battery Systems

Six Months Ended June 30,

2023

1,974

$

2024

2,027

$

2023

4,004

$

4,006

1,196

1,117

2,355

2,073

ePropulsion

464

566

900

1,053

Inter-segment eliminations

(31)

(39)

(61)

(78)

Net sales

$

3,603

$

3,671

$

7,198

$

7,054

Segment Adjusted Operating Income (Loss) (Unaudited)(in millions)Three Months Ended June 30,
2024

Air Management$

Drivetrain & Battery Systems

304

$

176

ePropulsion

Six Months Ended June 30,

2023

2024

305

$

2023

612

142

334

$

590
253

(49)

(19)

(111)

(54)

431

428

835

789

Corporate, including stock-based compensation

55

61

120

122

Restructuring expense

25

9

44

12

Intangible asset amortization expense

17

17

34

34

Commercial contract settlement

15

—

15

—

Adjustments associated with Spin-Off related balances

11

—

11

—

Accelerated depreciation

8

—

8

3

Merger and acquisition expense

—

8

5

16

Gain on sale of businesses

—

(5)

(3)

(5)

Service and lease agreement termination

—

9

—

9

Gain on sale of assets

—

(6)

—

(6)

Segment Adjusted Operating Income

Other non-comparable items

3

2

9

(3)

Equity in affiliates’ earnings, net of tax

(12)

(12)

(17)

(13)

Unrealized loss on equity and debt securities

—

54

2

69

Interest expense, net

8

12

13

22

Other postretirement expense

3

3

6

5

298

276

588

524

(31)

30

31

97

329

246

557

427

14

18

29

31

Earnings from continuing operations before income taxes andnoncontrolling interest(Benefit) provision for income taxes
Net earnings from continuing operations
Net earnings from continuing operations attributable tononcontrolling interest
Net earnings from continuing operations attributable to
BorgWarner Inc.

$

7

315

$

228

$

528

$

396

BorgWarner Inc.
Condensed Consolidated Balance Sheets (Unaudited)(in millions)
June 30,2024

December 31,
2023

ASSETS
Cash, cash equivalents and restricted cash

$

1,288

$

1,534

Receivables, net

3,111

3,109

Inventories, net

1,322

1,313

283

261

6,004

6,217

3,736

3,783

Prepayments and other current assets
Total current assets
Property, plant and equipment, net
Other non-current assets

4,368

Total assets

4,453

$

14,108$14,453

$

445

$

73

LIABILITIES AND EQUITY
Short-term debt
Accounts payable

2,202

2,546

Other current liabilities

1,065

1,148

3,712

3,767

3,283

3,707

828

913

7,823

8,387

6,093

5,828

Total current liabilities
Long-term debt
Other non-current liabilities
Total liabilities
Total BorgWarner Inc. stockholders’ equity
Noncontrolling interest
Total equity
Total liabilities and equity

$

8

192

238

6,285

6,066

14,108$14,453

BorgWarner Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)(in millions)
Six Months Ended June 30,
2024

2023

OPERATING ACTIVITIES OF CONTINUING OPERATIONSNet cash provided by operating activities from continuing operations

$

344

$

289

INVESTING ACTIVITIES OF CONTINUING OPERATIONSCapital expenditures, including tooling outlays

(355)

(439)

Payments for businesses acquired, net of cash acquired

—

(30)

Proceeds from settlement of net investment hedges, net

36

13(Payments for) proceeds from investments in debt and equity securities, net(4)

6

Proceeds from the sale of business, net

8—Proceeds from asset disposals and other, net

2

14

(313)

(436)

Net increase in notes payable—3

Additions to debt

2

1

Repayments of debt, including current portion

(15)

(6)

Payments for purchase of treasury stock

(100)

—

Payments for stock-based compensation items

(23)

(25)

Payments for contingent consideration

(1)

(23)

Purchase of noncontrolling interest

—

(15)

Dividends paid to BorgWarner stockholders

(50)

(79)

Dividends paid to noncontrolling stockholders

(55)

(64)

(242)

(208)

(18)

(21)

Net cash used in investing activities from continuing operations
FINANCING ACTIVITIES OF CONTINUING OPERATIONSNet cash used in financing activities from continuing operations
CASH FLOWS FROM DISCONTINUED OPERATIONS
Operating activities of discontinued operations
Investing activities of discontinued operations
Net cash used in discontinued operations
Effect of exchange rate changes on cash
Net decrease in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash at beginning of year

—

(85)

(18)

(106)

(17)

(29)

(246)

(490)

1,534

1,338

Cash, cash equivalents and restricted cash at end of period

$

1,288

$

848

Less: Cash, cash equivalents and restricted cash of discontinued operations at end of period

$

—

$

215

Cash, cash equivalents and restricted cash of continuing operations at end of period

$

1,288

$

633

Supplemental Information (Unaudited)(in millions)
Six Months Ended June 30,
2024

2023

Depreciation and tooling amortization

$

276

$

250

Intangible asset amortization

$

34

$

34

9

Non-GAAP Financial Measures
This press release contains information about BorgWarner’s financial results that is not presented inaccordance with accounting principles generally accepted in the United States (“GAAP”). Such nonGAAP financial measures are reconciled to their closest GAAP financial measures below and in the
Financial Results table above. The provision of these comparable GAAP financial measures for 2024 is
not intended to indicate that BorgWarner is explicitly or implicitly providing projections on those GAAP
financial measures, and actual results for such measures are likely to vary from those presented. The
reconciliations include all information reasonably available to the Company at the date of this press
release and the adjustments that management can reasonably predict.
Management believes that these non-GAAP financial measures are useful to management, investors,
and banking institutions in their analysis of the Company's business and operating performance.
Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure.
Additionally, because not all companies use identical calculations, the non-GAAP financial measures aspresented by BorgWarner may not be comparable to similarly titled measures reported by othercompanies.
Adjusted Operating Income and Adjusted Operating Margin
The Company defines adjusted operating income as operating income adjusted to exclude the impact ofrestructuring expense, merger, acquisition and divestiture expense, intangible asset amortization
expense, other net expenses, discontinued operations, and other gains and losses not reflective of theCompany’s ongoing operations. Adjusted operating margin is defined as adjusted operating income
divided by net sales.
Adjusted Net Earnings
The Company defines adjusted net earnings as net earnings attributable to BorgWarner Inc. adjusted toeliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net
expenses, discontinued operations, and other gains and losses not reflective of the Company’s ongoing
operations, and related tax effects. The impact of intangible asset amortization expense will continue tobe included in adjusted net earnings.
Adjusted Earnings per Diluted Share
The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted toeliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net
expenses, discontinued operations, other gains and losses not reflective of the Company’s ongoing
operations, and related tax effects. The impact of intangible asset amortization expense continues to be
included in adjusted earnings per share.
Free Cash Flow
The Company defines free cash flow as net cash provided by operating activities minus capital
expenditures and is useful to both management and investors in evaluating the Company’s ability toservice and repay its debt.

10Organic Net Sales Change
The Company defines organic net sales changes as net sales change year-over-year excluding theestimated impact of foreign exchange (FX) and the acquisitions of the smart grid and smart energy
businesses of Hubei Surpass Sun Electric and the Electric Hybrid Systems business segment of Eldor
Corporation.
Outgrowth
The Company defines outgrowth as organic net sales change versus the year-over-year change in lightand commercial vehicle production weighted for the Company’s geographic exposure, as estimated by
the Company.
Adjusted Operating Income and Adjusted Operating Margin (Unaudited)Three Months Ended June 30,(in millions)

2024

Six Months Ended June 30,

2023

2024

2023

Net sales

$

3,603

$

3,671

$

7,198

$

7,054

Operating income

$

297

$

333

$

592

$

607

Operating margin

8.2 %

9.1 %

8.2 %

8.6 %

Non-comparable items:
Restructuring expense

$

25

$

9

$

44

$

12

Intangible asset amortization expense

17

17

34

34

Commercial contract settlement

15

—

15

—

Adjustments associated with Spin-Off related balances

11

—

11

—

Accelerated depreciation

8

—

8

3

Merger and acquisition expense

—

8

5

16

Gain on sale of businesses

—

(5)

(3)

(5)

Corporate synergy from spin-off

—

5

—

10

Service and lease agreement termination

—

9

—

9

Gain on sale of assets

—

(6)

—

(6)

Other non-comparable items

3

Adjusted operating income$

Adjusted operating margin

376

2
$

10.4 %

372

9$

10.1 %

715

(3)
$

9.9 %

677
9.6 %

Free Cash Flow Reconciliation (Unaudited)Three Months Ended June 30,(in millions)2024

Net cash provided by operating activities from continuing
operations$

Capital expenditures, including tooling outlays

2023

462

$

(165)

Free cash flow$

11

Six Months Ended June 30,

297

2024

230

$

(200)
$

30

$

2023

344

$

289

(355)

(439)

(11) $(150)

Second Quarter 2024 Organic Net Sales Change (Unaudited)(in millions)

Q2 2023Net Sales

Air Management$ 2,027

Drivetrain & Battery Systems$

FX

Acquisition
ImpactOrganic
Net Sales
ChangeQ2 2024Net Sales

Organic
Net Sales
Change %

(33)

$

$

(20)

$ 1,974(1.0)%

—

99

1,196

8.9%

(9)

6

(99)

464

(17.5)%

—

—

8

(31)

(20.5)%(12)$ 3,603(0.3)%

Organic
Net Sales
Change %

1,117

(20)

ePropulsion

566

Inter-segment eliminations(39)

Net sales$ 3,671

$

—

(62)

$

6

$

FX

Acquisition
ImpactOrganic
Net Sales
ChangeQ2 2024YTD Net
Sales

(42)

$

$

Year to Date 2024 Organic Net Sales Change (Unaudited)(in millions)

Q2 2023YTD NetSales

Air Management$ 4,00635$ 4,004

0.9%

Drivetrain & Battery Systems

2,073

(33)

—

315

2,355

15.2%

ePropulsion

1,053

(19)

12

(146)

900

(13.9)%

(78)

—

—

17

(61)

(21.8)%

221$ 7,198

3.1%

Inter-segment eliminations
Total$ 7,054

$

$

(94)

$

5

17

$

Adjusted Operating Income and Adjusted Operating Margin Guidance Reconciliation (Unaudited)
Full-Year 2024 Guidance(in millions)Low

Net sales$

Operating income

High

14,100$1,150

Operating margin

14,400
1,195

8.2 %

8.3 %

Non-comparable items:
Restructuring expense

$

90

$

100

Intangible asset amortization expense

70

70

Commercial contract settlement

15

15

Adjustments associated with Spin-Off related balances11

11

Accelerated depreciation

88

Merger and acquisition expense

55Gain on sale of business

(3)

(3)

Other non-comparable items

9

Adjusted operating income$

Adjusted operating margin

1,355
9.6 %

12

9
$

1,410
9.8 %

Adjusted Earnings Per Diluted Share Guidance Reconciliation (Unaudited)
Full-Year 2024 Guidance
Low

Earnings per Diluted Share from Continuing Operations

$

High

3.88

$

4.05

Non-comparable items:
Restructuring expense

0.30

0.33

Commercial contract settlement

0.05

0.05

Adjustments associated with Spin-Off related balances

0.05

0.05

Accelerated depreciation

0.03

0.03

Merger and acquisition expense

0.02

0.02

Unrealized loss on equity and debt securities

0.01

0.01

Gain on sale of business(0.01)(0.01)Tax adjustments(0.42)(0.42)

Other non-comparable items

0.04

0.04

Adjusted Earnings per Diluted Share from Continuing Operations

$

3.95

$

4.15

Free Cash Flow Guidance Reconciliation (Unaudited)
Full-Year 2024 Guidance(in millions)Low

Net cash provided by operating activities

$

High

1,325

Capital expenditures, including tooling outlays

$

(850)

Free cash flow

$

1,375
(800)

475

$

575

Full Year 2024 Estimated Organic Net Sales Change Guidance and Outgrowth Reconciliation From Continuing Operations (Unaudited)FX

FY 2024
Acquisition
ImpactLow$

14,198

$

(175)

$

30

$

47

$

14,1000.3%(3.0)%

3.3%

High

$

14,198

$

(175)

$

30

$

347

$

14,4002.4%(2.0)%

4.4%(in millions)

FY 2023 Net
Sales

Organic Net
Sales
ChangeFY 2024 Net
Sales

Organic Net
Sales
Change %LV/CV
WeightedMarketOutgrowth

Full Year 2024 Estimated Year-Over-Year Change in Production (Unaudited)
North America

Europe

China

Total

0% to 1%(5)% to (4)%(0.5)% to 0.5%

(2)% to (1.5)%

Commercial vehicle(6)% to (2.5)%(13.5)% to (10)%~4%(1.5)% to 0%

BorgWarner weighted(0.5)% to 0.5%

(6.5)% to (5)%0 to 1%(3)% to (2)%Light vehicle

13