BorgWarner Increases Quarterly Dividend 29%; Announces Two-For-One Stock Split; Cites Strong Performance and Outlook
15 November 2007 - 9:10AM
PR Newswire (US)
AUBURN HILLS, Mich., Nov. 14 /PRNewswire-FirstCall/ -- BorgWarner
Inc. (NYSE:BWA), a leading provider of highly engineered engine and
drivetrain components and systems to vehicle makers worldwide,
announced today that the company's board of directors has declared
a 29% increase in the quarterly cash dividend and approved a
two-for-one stock split effected in the form of a stock dividend on
its common stock. To implement the stock split, shares of common
stock will be issued on December 17, 2007 to stockholders of record
as of the close of business on December 6, 2007. The stock split
will increase BorgWarner's outstanding shares of common stock from
approximately 58 million shares to approximately 116 million. The
cash dividend on all the company's issued and outstanding common
stock will increase to $0.11 per share ($0.22 per share pre-split)
from $0.085 per share currently ($0.17 pre-split). The increased
cash dividend will be paid February 15, 2008 to stockholders of
record as of the close of business on February 1, 2008. "BorgWarner
continues to deliver a strong performance during a time of
transition and globalization in our industry," stated Timothy M.
Manganello, Chairman and Chief Executive Officer. "Investors
recognize the company's potential for growth, as demand for our
fuel-efficient products continues to increase. We believe the
strategies we have in place will allow us to produce sustainable
growth and continue to outpace the global auto industry. Even with
our increased cash dividend, we expect to maintain our strong
investment grade capital structure. Both the stock split and cash
dividend increase are intended to convey our optimism about the
future of our company." BorgWarner has tripled its cash dividend
amount over the past six years. In 2004, the company initiated its
first two-for-one stock split. The company became a publicly traded
entity in 1993. Auburn Hills, Michigan-based BorgWarner Inc.
(NYSE:BWA) is a product leader in highly engineered components and
systems for vehicle powertrain applications worldwide. The FORTUNE
500 company operates manufacturing and technical facilities in 64
locations in 17 countries. Customers include VW/Audi, Ford, General
Motors, Toyota, Hyundai/Kia, Daimler, Renault/Nissan, Chrysler,
Navistar International, Fiat, BMW, Honda, PSA, and Caterpillar. The
Internet address for BorgWarner is: http://www.borgwarner.com/.
Statements contained in this news release may contain
forward-looking statements as contemplated by the 1995 Private
Securities Litigation Reform Act that are based on management's
current expectations, estimates and projections. Words such as
"expects," "anticipates," "intends," "plans," "believes,"
"estimates," variations of such words and similar expressions are
intended to identify such forward-looking statements.
Forward-looking statements are subject to risks and uncertainties,
many of which are difficult to predict and generally beyond our
control, that could cause actual results to differ materially from
those expressed, projected or implied in or by the forward-looking
statements. Such risks and uncertainties include: fluctuations in
domestic or foreign vehicle production, the continued use of
outside suppliers, fluctuations in demand for vehicles containing
our products, changes in general economic conditions, and other
risks detailed in our filings with the Securities and Exchange
Commission, including the Risk Factors, identified in our most
recently filed Annual Report on Form 10-K. We do not undertake any
obligation to update any forward-looking statements. DATASOURCE:
BorgWarner Inc. CONTACT: Mary Brevard of BorgWarner Inc.,
+1-248-754-0881 Web site: http://www.borgwarner.com/
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