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BorgWarner appoints new COO, revamps business units

EditorBrando Bricchi
Published 05/31/2024, 05:50 AM
BWA
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AUBURN HILLS, Mich. - BorgWarner Inc. (NYSE: NYSE:BWA), a global product leader in clean and efficient technology solutions for combustion, hybrid, and electric vehicles, has announced the promotion of Joseph Fadool to Executive Vice President and Chief Operating Officer, effective July 1, 2024. With this new role, Fadool will oversee the company's operations and report directly to President and CEO Frédéric Lissalde.

Having joined BorgWarner in 2010, Fadool has held several key positions, most recently as Vice President and General Manager of Emissions, Thermal and Turbo Systems. His prior experience includes roles at Continental Automotive Systems and Ford Motor Company (NYSE:F). Fadool's educational background includes a Bachelor of Science in electrical engineering and a Master of Science in computer and electronic controls.

In his new capacity, Fadool is expected to leverage his extensive knowledge of BorgWarner's operations and technology development to drive growth and enhance the company's performance. Lissalde commended Fadool's leadership, which has been instrumental in the company's growth and in strengthening relationships with major global OEMs.

Concurrent with Fadool's appointment, BorgWarner is introducing a new business unit structure to better execute its 'Charging Forward' strategy, which focuses on advancing mobility innovation. Starting July 1, 2024, the company will reorganize into four units: Emissions, Thermal and Turbo Systems; Drivetrain and Morse Systems; PowerDrive Systems; and Battery and Charging Systems. This restructuring aims to bolster operational agility, improve efficiency, and capitalize on growth opportunities in the evolving automotive industry.

BorgWarner will also align its financial reporting segments with this new business unit structure from the same date. The company has a history spanning over 130 years, with a commitment to sustainability and innovation in the mobility sector.

This announcement is based on a press release statement from BorgWarner and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and actual results may differ materially from those projected. The company cautions against placing undue reliance on these forward-looking statements, which are subject to various risks and uncertainties.

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InvestingPro Insights

As BorgWarner Inc. (NYSE: BWA) ushers in Joseph Fadool as the new Executive Vice President and Chief Operating Officer, the company's financial health and market position remain key factors for investors. According to InvestingPro data, BorgWarner has a market capitalization of $7.93 billion, underlining its significant presence in the automotive industry. The company's Price-to-Earnings (P/E) ratio stands at a competitive 13.16, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at an even more attractive 9.31, suggesting potential value for investors.

Furthermore, BorgWarner has demonstrated robust revenue growth of 18.66% over the last twelve months as of Q1 2024, reflecting the company's ability to expand in a challenging market. This growth trajectory is supported by a solid gross profit margin of 18.29%, although InvestingPro tips indicate that the company does suffer from weak gross profit margins relative to its peers.

Investors may find reassurance in the company's financial stability, as highlighted by two key InvestingPro tips: BorgWarner's cash flows can sufficiently cover interest payments, and its liquid assets exceed short-term obligations. Additionally, the company has a track record of maintaining dividend payments for 12 consecutive years, with a current dividend yield of 1.26%. These factors, combined with the prediction that BorgWarner will be profitable this year, paint a picture of a financially sound company poised for sustained success.

For those interested in deeper analysis and more InvestingPro tips, there are additional insights available at https://www.investing.com/pro/BWA. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more InvestingPro tips listed in InvestingPro that can offer investors a comprehensive understanding of BorgWarner's potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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