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BorgWarner Inc.
Standard & Poors, May 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
Diversification by product, customer, and geography. Strong technology with products that have high-value-added content. Solid organic growth prospects, driven by demand for fuel efficiency. Relatively good profit margins for auto supplier sector through the cycle. Profitability and cash flow are vulnerable to any reversal in the recovery of industry demand. High fixed costs and capital intensity. Underfunded pension and other postretirement benefits plans. The ratings on Auburn Hills, Mich.-based BorgWarner Inc. reflect the company's intermediate financial risk profile and satisfactory business risk profile. The company's market position in the very challenging auto supplier industry includes products that should allow BorgWarner to earn double-digit EBITDA margins. Standard & Poor's Ratings Services believes these margins and BorgWarner's track record of exceeding industry...
Companies mentioned in this report are: BorgWarner Inc.
Action: Review
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