(Reuters) – BorgWarner Inc on Thursday forecast full-year sales below analysts’ estimates as supply chain issues continued to weigh on the auto supplier, sending the company’s shares down nearly 2% in premarket trading.
The Michigan-based firm like other auto companies has been grappling with a shortage of certain raw materials and higher costs to procure them.
Supply headwinds, which began during the height of the pandemic, threaten to hurt demand for auto parts and comes at a time when carmakers are ramping up production.
BorgWarner – whose clients include Volkswagen, General Motors and Ford – expects 2023 net sales between $17.1 billion and $17.9 billion, compared with Refinitiv estimates of $17.23 billion.
On an adjusted basis, the company earned $1.09 per share in the first quarter, compared with estimates of $1.11.
(Reporting by Raechel Thankam Job and Nathan Gomes in Bengaluru; Editing by Shilpi Majumdar and Shounak Dasgupta)
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