DETROIT — BorgWarner Inc. reported a slight increase in revenue and a decline in net income as part of its acquisition of Rhombus Energy Solutions for $130 million, the auto supplier said in its second quarter earnings report on Wednesday. trimester.
In a statement, the company said it paid the initial $130 million for the electric vehicle charging provider at closing and would pay $55 million in contingent payments over the next three years. .
“We believe we can leverage local knowledge and Rhombus’ footprint to complement our existing load capacity to accelerate organic growth,” BorgWarner CEO Frederic Lissalde said in a phone call. Wednesday morning to investors. “We plan to leverage the two synergies between product quality engineering, supply chain manufacturing and global sales. We also see potential synergies with battery system customers.”
Lissalde said the company expects the acquisition to add $10 million in revenue in the last two quarters of 2022. He said the purchase will strengthen BorgWarner’s electric mobility capabilities and advance its charging strategy, which predicts that electric vehicle revenues will represent around 45% of total revenues by 2030.
The Auburn Hills, Michigan-based company said net sales remained relatively flat compared to the same period last year, with revenue up just 0.03% to $3.76 billion. dollars. The company said in a statement that “excluding foreign currency impact, the 2022 acquisition of Santroll’s light vehicle eMotor business and the 2021 divestiture of the Water Valley, Mississippi business, organic sales increased by 7% compared to the second quarter of 2021”.
BorgWarner also saw its net profit drop 13% to $216 million. Second-quarter operating profit fell more than 14% to $272 million from a year ago.
The company’s individual business units saw varying changes throughout the quarter. Air Management System unit revenue increased approximately 2% to $1.7 billion, and e-Populsion & Drivetrain revenue increased 3.5% to $1.7 billion. .27 billion dollars. Fuel systems sales fell more than 11% to $516 million, and aftermarket sales fell more than 6% to $312 million.
BorgWarner shares rose 3.3% to $39.83 on Wednesday morning.
BorgWarner ranks #15 on the Automotive News list of the top 100 global suppliers, with nearly $14 billion in sales to global automakers in 2021.