Business Analysis of BorgWarner

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of BorgWarner

BORGWARNER

Business Overview

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through two segments, Engine and Drivetrain. The Engine segment develops and manufactures turbochargers; and timing systems, such as timing chains, variable cam timing products, crankshaft and camshaft sprockets, tensioners, guides and snubbers, HY-VO front-wheel drive transmission chains, and four-wheel drive chains for light vehicles. It also provides emissions systems, including electric air pumps and exhaust gas recirculation (EGR) modules, EGR coolers, EGR tubes, and EGR valves; thermal systems products comprising viscous fan drives, polymer fans, and coolant pumps; and glow plugs, diesel cold start systems, and other gasoline ignition technologies. The Drivetrain segment develops and manufactures friction and mechanical products, including dual and friction clutch modules, friction and steel plates, transmission bands, torque converter clutches, one-way clutches, and torsional vibration dampers. This segment also offers control products comprising electro-hydraulic solenoids, transmission solenoid modules, and dual clutch control modules; torque management products, such as rear-wheel drive/all-wheel drive (AWD) transfer case systems, front wheel drive-AWD coupling systems, and cross-axle coupling systems; and starter motors, alternators, and hybrid electric motors. The company sells its products to original equipment manufacturers of light vehicles consisting of passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, such as medium-duty and heavy duty trucks, and buses; and off-highway vehicles, including agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. BorgWarner Inc. was founded in 1987 and is headquartered in Auburn Hills, Michigan.

BorgWarner

BorgWarner


R&P Rank: 313
Sector: Automobiles and Parts
Industry:Auto Parts
H.Q Location:Michigan
Website: www.borgwarner.com
Company Address:
3850 HAMLIN RD., AUBURN HILLS MI 48326
Ph:248-754-9200

Business Analysis of BorgWarner

The Automobiles and Parts Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how BorgWarner compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by BorgWarner to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of BorgWarner with an interactive chart.

  1. Revenue Growth: BorgWarner reported a revenue growth of 13.1% year-on-year during 2016. Auto Parts Industry grew at 1.1% in the same period
  2. COGS share of Revenues: As a percentage of revenue, BorgWarner spent 78.7% of its total revenues on COGS. Auto Parts industry average (COGS share of revenue) in the same period was 74.6%
  3. R&D share of Revenues: BorgWarner R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, BorgWarner spent 9.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Auto Parts industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, BorgWarner spent 7.1% of its total revenues on Inventories. Auto Parts industry average Inventory spending in the same period was 14.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, BorgWarner invested 20.4% of its total revenues on Accounts Payable (A/P) Auto Parts industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, BorgWarner invested 18.6% of its total revenues on Accounts Receivable (A/R). Auto Parts industry average Accounts Receivable investment in the same period was 12.8%
  8. PP&E share of Revenues: As a percentage of revenue, BorgWarner invested 27.6% of its total revenues on Property, Plants, and Equipments (PP&E). Auto Parts industry average PPE investment in the same period was 21.0%
  9. Intangibles share of Revenues: As a percentage of revenue, BorgWarner invested 23.9% of its total revenues on Intangibles. Auto Parts industry average Intangibles investment in the same period was 14.2%
  10. Net Margins: BorgWarner Net Margins in the year 2016 were 1.3%. Auto Parts industry average Net Margins in the same period were 5.3%

Sector and Industry Association of BorgWarner

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

BorgWarner is associated with Industrials Sector Group, Automobiles and Parts Sector, and Auto Parts Industry.

Automobiles and Parts sector is comprised of the following industries: Automobiles; Auto Parts. The definitions for each of the industries is as follows:

  • Automobiles industry includes manufacturers of passenger vehicle that includes Cars, SUVs etc. and recreational vehicles including motorcycles like Harley Davidson. Companies making boats and other recreational vehicles are also part of Automobiles industry.
  • Auto Parts industry includes manufacturers and distributors of automobile parts including engines, batteries and also tires.

Industry Ranking of BorgWarner

With $9.1 billion revenues, BorgWarner ranked number 9 of all the companies in the US Auto Parts industry. There were a total of 38 public companies in the US Auto Parts industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Auto Parts industry by revenues during 2016 were:

  1. Lear ($18.6 billion)
  2. Adient ($16.8 billion)
  3. Delphi Automotive ($16.7 billion)
  4. Genuine Parts ($15.3 billion)
  5. Goodyear Tire & Rubber ($15.2 billion)
  6. AutoZone ($10.6 billion)
  7. Autoliv ($10.1 billion)
  8. Advance Auto Parts ($9.6 billion)
  9. BorgWarner ($9.1 billion)
  10. Tenneco ($8.6 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of BorgWarnerand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of borgwarner

AutoZone (AZO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

AutoZone Inc with $11 billion revenues in the year 2016 was the number 6 Auto Parts company. Read this report to know the top competitors of AutoZone and identify growth and cost optimization opportunities of AutoZone

Autoliv (ALV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Autoliv Inc with $10 billion revenues in the year 2016 was the number 7 Auto Parts company. Read this report to know the top competitors of Autoliv and identify growth and cost optimization opportunities of Autoliv

Advance Auto Parts (AAP) Business Analysis – Analyze Historical Performance, Strategic...

Advance Auto Parts Inc with $10 billion revenues in the year 2016 was the number 8 Auto Parts company. Read this report to know the top competitors of Advance Auto Parts and identify growth and cost optimization opportunities of Advance Auto Parts

Tenneco (TEN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Tenneco Inc with $9 billion revenues in the year 2016 was the number 10 Auto Parts company. Read this report to know the top competitors of Tenneco and identify growth and cost optimization opportunities of Tenneco

O’Reilly Automotive (ORLY) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

O'Reilly Automotive Inc with $9 billion revenues in the year 2016 was the number 11 Auto Parts company. Read this report to know the top competitors of O'Reilly Automotive and identify growth and cost optimization opportunities of O'Reilly Automotive

LKQ (LKQ) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

LKQ Corp with $9 billion revenues in the year 2016 was the number 12 Auto Parts company. Read this report to know the top competitors of LKQ and identify growth and cost optimization opportunities of LKQ

Revenues Analysis

BorgWarner (BWA) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Borgwarner Inc (BWA) from 2012 to 2016. BorgWarner generated a total of $9.1 billion revenues during 2016. BorgWarner reported a revenue growth of 13.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

BorgWarner (BWA) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Borgwarner Inc (BWA) from 2002 to 2016. BorgWarner generated a total of $9.1 billion revenues during 2016. BorgWarner reported a revenue growth of 13.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

BorgWarner (BWA) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Borgwarner Inc (BWA) revenue growth with Auto Parts industry growth during the last five years from 2012 to 2016. BorgWarner reported a revenue growth of 13.1% year-over-year during 2016. The Auto Parts industry growth was 1.1% year-over-year during 2016. BorgWarner growth was faster than the industry during 2016.

Profit Analysis

BorgWarner (BWA) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Borgwarner Inc (BWA) from 2012 to 2016. BorgWarner reported a total net income of $118.5 million during 2016. BorgWarner generated a total of $9.1 billion revenues during 2016. BorgWarner net profit margin was 1.3% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.

BorgWarner (BWA) Net Profit And Net Margin From 2002 To 2016

This report provides the last fifteen years net profit and net margin of Borgwarner Inc (BWA)