BorgWarner Inc said on Thursday it expects sales from its electric vehicle EV business to grow at least 72 per cent in 2023, as the U.S. auto supplier shifts its focus to EV makers.
The company, which makes products such as turbochargers and battery heaters, forecast sales for its electric supply unit to be between $1.5 billion and $1.8 billion in 2023, compared to $870 million in 2022.
In December of this year, BorgWarner announced plans to spin off its fuel systems and aftermarket units to focus solely on air management and e-propulsion drivetrain units.
The company, which supplies to automakers like Ford Motor Co and General Motors Co, aims to meet or exceed its target of 25 per cent of revenue from EVs by 2025.
According to Refinitiv data, Robust EV production helped BorgWarner's fourth-quarter results beat analysts' estimates.
The company's sales were $4.1 billion, compared to estimates of $3.90 billion.
The net income was $1.26 per share, compared to estimates of $1.08 per share on an adjusted basis.
The Michigan-based company expects net sales to be in the range of $16.7 billion to $17.5 billion by the year 2023, compared to estimates of $16.82 billion. Net earnings were expected to be $4.50 to $5.00 per diluted share, compared to expectations of $4.92 per share.