博格華納 (BWA) 2024 Q4 法說會逐字稿

Good morning. My name is Nick, and I will be your conference specialist. At this time, I would like to welcome everyone to the BorgWarner 2024 fourth quarter and full year results conference call. (Operator Instructions).

早安.我叫尼克，我將成為您的會議專家。現在，我歡迎大家參加博格華納2024年第四季及全年業績電話會議。（操作員指令）。

I would now like to turn the conference over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

現在，我想將會議交給投資者關係副總裁 Patrick Nolan。諾蘭先生，您可以開始您的會議了。

Thank you, Nick, and good morning, everyone. Thank you all for joining us today. We issued our earnings release earlier this morning. It's posted on our website, borgwarner.com, both on the homepage and on our Investor Relations home page. With regards to our Investor Relations calendar, we will be attending more conferences between now and our next earnings release. Please see the Events section of our IR page for a full list.

謝謝你，尼克，大家早安。感謝大家今天的參與。我們今天早上發布了收益報告。它發佈在我們的網站 borgwarner.com 的主頁和投資者關係主頁上。關於我們的投資者關係日程表，從現在到下次發布收益報告之間，我們將參加更多會議。請參閱我們的 IR 頁面的活動部分以取得完整清單。

Before we begin, I need to inform you that during this call, we may make forward-looking statements, which involve risks and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. During today's presentation, we will highlight certain non-GAAP measures in order to provide a clearer picture of how the core business performed and for comparison purposes with prior periods.

在我們開始之前，我需要通知您，在本次電話會議中，我們可能會做出前瞻性陳述，其中涉及我們的 10-K 中詳述的風險和不確定性。我們的實際結果可能與今天討論的問題有很大不同。在今天的簡報中，我們將重點介紹某些非 GAAP 指標，以便更清楚地了解核心業務的表現，並與前期進行比較。

When you hear us say on a comparable basis, that means excluding the impact of FX, net M&A and other noncomparable items. When you hear us say adjusted, that means excluding noncomparable items. When you hear us say organic, that means excluding the impact of FX and net M&A.

當我們說以可比較基礎時，這意味著排除外匯、淨併購和其他不可比較項目的影響。當您聽到我們說調整時，這意味著排除不可比的項目。當您聽到我們說有機時，這意味著排除外匯和淨併購的影響。

We will also refer to our incremental margin performance. Our incremental margin is defined as the organic change in our adjusted operating income divided by the organic change in our sales. Our all-in incremental margin includes our planned investment in R&D, any impact from net inflationary impacts and other cost items.

我們也將參考我們的增量利潤率表現。我們的增量利潤率定義為調整後營業收入的有機變化除以銷售額的有機變化。我們的全部增量利潤包括我們計劃的研發投資、淨通膨影響和其他成本項目的影響。

Lastly, we will refer to our growth compared to our market. When you hear us say market, that means the change in light and commercial vehicle production weighted for our geographic exposure. Please note that we have posted today's earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion.

最後，我們將參考我們相對於市場的成長。當您聽到我們說市場時，這意味著輕型汽車和商用汽車產量的變化會因我們的地理分佈而改變。請注意，我們已將今天的收益電話會議報告發佈到我們網站的 IR 頁面上。我們鼓勵您在討論過程中關注這些投影片。

With that, I'm happy to turn the call over to Fred.

說完這些，我很樂意將電話轉給弗雷德。

Thank you, Pat, and good day, everyone. We're pleased to share our results for 2024 and provide a company update, starting on slide 5. We delivered approximately $14 billion in sales, which was relatively flat versus 2023.

謝謝你，帕特，大家好。我們很高興分享 2024 年的業績並提供公司最新動態，從第 5 張投影片開始。我們的銷售額約為 140 億美元，與 2023 年相比基本持平。

Our industry production for the full year was down approximately 3%. We saw a solid 2024 out -- about 280 basis points. I am pleased that the outgrowth is both on the foundational and on the e-Products side of our portfolio. This demonstrates to me the resiliency of this portfolio and our ability to drive our growth in particularly challenging and volatile end markets.

我們全年產業產量下降了約3％。我們看到了2024年的穩健表現──約280個基點。我很高興看到我們的產品組合在基礎產品和電子產品方面都取得了成長。這向我證明了該投資組合的彈性以及我們在特別具有挑戰性和波動性的終端市場中推動成長的能力。

As Joe will detail, we finished the year by securing multiple new product awards for both foundational and eProducts, which we believe further supports our long-term profitable growth. Our adjusted operating margin performance was strong, coming in above 10% and above the high end of our guide. This strong underlying operational performance was once again driven by our focus, on cost control across the businesses. As a result, our full year adjusted earnings per share grew by 15% year-over-year.

正如喬所詳細介紹的，我們在年底獲得了基礎產品和電子產品的多個新產品獎項，我們相信這進一步支持了我們的長期獲利成長。我們的調整後營業利潤率表現強勁，達到 10% 以上，且高於我們的指導上限。這項強勁的基礎營運績效再次得益於我們對整個業務成本控制的重視。因此，我們全年調整後的每股盈餘較去年同期成長15%。

We delivered $729 million of free cash flow, which was up 29% year-over-year and also exceeded our full year guidance. As Craig will detail, we remain well positioned to continue to generate strong free cash flow in 2025. We will do this while also investing in our business to support our focus on long-term profitable growth in efficient powertrain.

我們實現了 7.29 億美元的自由現金流，年增 29%，同時也超過了我們的全年預期。正如 Craig 所詳細說明的，我們仍處於有利地位，能夠在 2025 年繼續產生強勁的自由現金流。在這樣做的同時，我們也將對我們的業務進行投資，以支持我們對高效動力系統的長期獲利成長的關注。

Today is my final earnings call with BorgWarner. Before I turn it over to Joe, I would like to share a few thoughts with you. I believe that BorgWarner is positioned to grow profitably regardless of the pace of the powertrain mix change. I also firmly believe that BorgWarner is well equipped, thanks to its decentralized operating model we excel in a more regionalized powertrain outlook.

今天是我與博格華納的最後一次財報電話會議。在把話題交給喬之前，我想和大家分享一些想法。我相信，無論動力系統組合變化的速度如何，博格華納都能夠實現獲利成長。我還堅信，博格華納擁有良好的實力，得益於其分散的營運模式，我們在更區域化的動力總成領域表現出色。

I have spent 26 years at BorgWarner. I'm proud of the work that was done. I'm proud of our very special combustion portfolio and of the portfolio enhancements that we have executed over the past 10 years. We created what I believe is one of the most powerful proportion portfolios in the world while still keeping at the same time, our strong culture, maintaining a double-digit margin and the free cash flow generation that is quite unique in our Tier 1 auto supplier world.

我在博格華納工作了26年。我為所做的工作感到自豪。我為我們非常特殊的燃燒產品組合以及我們過去 10 年中執行的產品組合增強感到自豪。我們創建了我認為是世界上最強大的比例投資組合之一，同時仍然保持了我們強大的文化，維持了兩位數的利潤率和在我們的一級汽車供應商領域中相當獨特的自由現金流生成。

I want to thank our Board of Directors who have been a key sending Board for me with unwavering support to the implementation of our strategies. I want to thank my team members, and their stewardship to BorgWarner, their resiliency and their leadership. I, of course, want to thank all the BorgWarner employees around the world who are making a key difference each and every day.

我要感謝我們的董事會，他們是我最重要的董事會成員，堅定不移地支持我們策略的實施。我要感謝我的團隊成員，感謝他們對博格華納的管理、他們的韌性和領導能力。當然，我要感謝世界各地所有的博格華納員工，他們每天都在扮演重要角色。

I have been working with Joe on the CEO transition over the past few months and have collaborated with Joe over the past 15 years. I have full confidence that Joe is the leader that BorgWarner needs. I also want to thank the analyst community. It has been a pleasure to interact with you over the past few years, interactions that have made me stronger and with which I have always learned. And finally, of course, I would like to thank the shareholders for their trust.

過去幾個月我一直與喬合作處理執行長的過渡事宜，過去 15 年來我一直與喬合作。我完全相信喬是博格華納需要的領導者。我還要感謝分析師社群。過去幾年來，我很榮幸能與你們交流，這些交流讓我變得更強大，我也從中不斷學習。最後，當然，我要感謝股東們的信任。

With that, I'm excited to turn the call over to you, Joe.

說到這裡，我很高興把電話交給你，喬。

Thank you, Fred. On behalf of the management team and all of our employees, I would just like to thank you for your leadership over the last 26 years and especially the last seven as CEO. I also want to personally thank you for your mentorship and friendship over the years. You've been an inspirational leader to me, and I believe you've clearly positioned the company well for our next phase of profitable growth. We wish you nothing but success as you move on to the next chapter and hope you enjoy your well-deserved retirement.

謝謝你，弗雷德。我謹代表管理團隊和全體員工，感謝您在過去 26 年裡，特別是過去 7 年擔任執行長期間的領導。我還要親自感謝您多年來的指導和友誼。對我來說，您是一位鼓舞人心的領導者，我相信您已經為公司下一階段的獲利成長做好了充分的準備。我們衷心祝福您在邁向下一篇章時一切順利，並希望您享受當之無愧的退休生活。

Now let's turn to slide 6, for what I view as the drivers of BorgWarner's value proposition. First and foremost, we have what I view as a strong product portfolio that is resilient to the varied pace of propulsion mix changes that we see across the world.

現在讓我們翻到第 6 張投影片，看看我所看到的博格華納價值主張的驅動因素。首先，我認為我們擁有強大的產品組合，可以適應世界各地推進系統組合變化的不同速度。

Second, we have strong market share positions across our foundational portfolio with several of our eProducts also improving their market share positions. Third, I view BorgWarner's financial strength as a key driver of our success. It allows us to continue to invest in our business, regardless of near-term fluctuations in market volumes or mix.

其次，我們的基礎產品組合擁有強大的市場份額，其中多款電子產品的市佔率也不斷提升。第三，我認為博格華納的財務實力是我們成功的關鍵驅動力。它使我們能夠繼續投資於我們的業務，無論短期內市場規模或產品組合如何波動。

Our financial strength is also a differentiator when our customers award us new business. And our financial strength is a direct end result of the financial discipline in grain into the company's culture. Fourth, the long-term relationships that we've established with our light vehicle and commercial vehicle customers around the world is also a very important driver of our success. These relationships allow us to partner with our consumers to meet their efficiency and value needs beyond just pursuing individual program awards.

當客戶授予我們新業務時，我們的財務實力也是一個優勢。我們的財務實力直接源自於我們已將財務紀律融入公司文化。第四，我們與全球輕型車和商用車客戶建立的長期關係也是我們成功的一個非常重要的驅動力。這些關係使我們能夠與消費者合作，滿足他們的效率和價值需求，而不僅僅是追求單獨的計劃獎項。

Lastly, I firmly believe that our decentralized operating model creates speed, accountability and agility. The agility afforded by our operating model allows us to navigate these times of industry turmoil like we are currently experiencing.

最後，我堅信我們的分散營運模式能夠創造速度、責任感和敏捷性。我們的營運模式所提供的靈活性使我們能夠渡過當前正在經歷的行業動盪時期。

With that said, Craig is going to review our detailed 2025 outlook in a few moments. But from a market perspective, we expect another year of declining industry volumes, combined with the uncertainty of tariff implications. As such, let's turn to slide 7, which outlines our strategic focus areas for 2025 and beyond.

話雖如此，Craig 將在稍後回顧我們詳細的 2025 年展望。但從市場角度來看，我們預期今年產業銷售仍將下滑，且關稅影響也存在不確定性。因此，讓我們翻到第 7 張投影片，它概述了我們 2025 年及以後的策略重點領域。

First, we aim to outgrow industry production by leveraging our core competencies. BorgWarner's DNA remains focused on efficiency, which includes both fuel efficiency for combustion vehicles and electron efficiency for hybrid and valves.

第一，我們力爭發揮核心競爭力，超越工業生產。博格華納的 DNA 仍然專注於效率，其中包括內燃機汽車的燃油效率以及混合動力和閥門的電子效率。

Our anticipated outgrowth reflects our customers' demand for efficient propulsion products around the world. In combination with our strong product portfolio and deep customer relationships, we plan to continue to help the world deliver innovative and sustainable mobility solutions for a clean, energy-efficient world, which we believe will drive industry outgrowth for years to come.

我們的預期成長反映了我們客戶對全球高效推進產品的需求。結合我們強大的產品組合和深厚的客戶關係，我們計劃繼續幫助世界提供創新、永續的行動解決方案，打造一個清潔、節能的世界，我們相信這將在未來幾年推動產業成長。

Second, we must continue to build upon our existing product portfolio. We plan to achieve this by continuing to make thoughtful organic and inorganic investments where we see a strong business case that delivers value to shareholders.

第二，我們必須繼續鞏固我們現有的產品組合。我們計劃透過繼續進行深思熟慮的有機和無機投資來實現這一目標，因為我們認為這些投資具有強大的商業案例，可以為股東帶來價值。

Organically, our focus will be to accelerate our scale and gain additional market share across our entire portfolio, and we need to stay focused on driving a product culture that nurtures nation. Inorganically, we intend to explore opportunities to improve our current market share positions or product adjacencies where we can apply BorgWarner's core competencies.

從有機角度來看，我們的重點是加速擴大規模並在整個產品組合中獲得額外的市場份額，並且我們需要專注於推動培育國家的產品文化。本質上，我們打算探索機會來改善我們目前的市場份額地位或產品鄰接，以便我們能夠應用博格華納的核心競爭力。

We believe there will be high-quality opportunities in front of us and we are in a strong position to take advantage of the turbulence in our industry.

我們相信，我們面前將會出現優質的機遇，而且我們有能力利用產業的動盪。

Lastly, we must continue to drive enhanced financial performance. To me, this means striving to expand margins and generating strong cash flow. We will do this through business excellence. We'll achieve this by continuing to actively manage our cost structure as we navigate volatile industry volumes, changing regional propulsional mix and launching new businesses across the globe. We believe it will be important to balance all these factors in order to preserve BorgWarner's strong financial foundation and enhance our margin and cash flow generation as we grow profitably.

最後，我們必須繼續努力提高財務表現。對我來說，這意味著努力擴大利潤率並產生強勁的現金流。我們將透過卓越的業務來實現這一目標。我們將透過繼續積極管理我們的成本結構來實現這一目標，因為我們要應對波動的行業規模、改變區域推進組合以及在全球範圍內開展新業務。我們認為，平衡所有這些因素非常重要，這樣才能維持博格華納強大的財務基礎，並在獲利成長的同時提高我們的利潤率和現金流。

Now, let's look at some new product awards on slide 8, which I believe are strong indicators of our future profitable growth. First, BorgWarner has secured an award to supply state-of-the-art variable cam timing system to a major East Asian OEM for their next-generation hybrid and gasoline engines.

現在，讓我們來看看第 8 張投影片上的一些新產品獎項，我相信這些獎項是我們未來獲利成長的有力指標。首先，博格華納獲得了一項合同，為東亞一家大型原始設備製造商的下一代混合動力和汽油發動機提供最先進的可變凸輪正時系統。

BorgWarner's VCT system dynamically optimizes the timing of intake and exhaust valve events, improving combustion efficiency and reducing emissions. These advanced engines will power a range of the customer's hybrid and combustion vehicles, delivering improved fuel economy and reducing environmental impacts. Production of these engines are scheduled to commence in the first quarter of 2026.

博格華納的 VCT 系統可動態優化進氣和排氣門的時間，進而提高燃燒效率並減少排放。這些先進的引擎將為客戶的一系列混合動力和內燃機汽車提供動力，提高燃油經濟性並減少對環境的影響。這些引擎的生產計劃於 2026 年第一季開始。

Second, BorgWarner is expanding our partnership with a major North American-based OEM by extending four wastegate turbocharger programs for I4 and V6 engine platforms. These turbocharger extensions will be deployed on several of the automakers midsized and large SUVs as well as truck applications with the start of production set to begin in 2026.

其次，博格華納正在擴大與北美一家大型 OEM 廠商的合作夥伴關係，為 I4 和 V6 引擎平台擴展四個廢氣旁通渦輪增壓器計畫。這些渦輪增壓器擴展裝置將部署在多家汽車製造商的中型和大型 SUV 以及卡車上，生產預計將於 2026 年開始。

BorgWarner has a long-standing relationship with this OEM, having supplied them with our turbochargers over the last 20 years. We believe these platform extensions are a testament to the strong collaboration between our engineering teams, and we look forward to continuing our work together through the rest of this decade and beyond.

博格華納與該 OEM 有著長期的合作關係，過去 20 年來一直為其提供渦輪增壓器。我們相信這些平台擴展證明了我們的工程團隊之間的緊密合作，我們期待在未來十年及以後繼續共同努力。

Third, BorgWarner secured an award to supply two types of transfer cases to SAIC Maxus for use in export vehicles. Both products are designed by BorgWarner's China R&D team and will be manufactured in China with mass production expected to begin in 2026.

第三，博格華納獲得上汽大通出口車型兩款分動箱供應合約。兩款產品均由博格華納中國研發團隊設計，並將在中國生產，預計2026年開始量產。

BorgWarner's relationship with SAIC Maxus spans more than a decade. Our transfer case technology not only SAIC Maxus in strengthening its position in the Chinese market but also empowers its expansion into overseas markets.

博格華納與上汽大通的合作關係已超過十年。我們的分動箱技術不僅幫助上汽大通鞏固了在中國市場的地位，也為其拓展海外市場助力。

Finally, BorgWarner has secured four eMotors awards with three major Chinese OEMs used on plug-in hybrids, range extended hybrids and electric vehicle platforms. These programs are expected to launch in 2025 and 2026.

最後，博格華納與三家中國主要汽車製造商共同獲得了四項 eMotors 大獎，這些產品分別用於插電式混合動力車、增程式混合動力車和電動車平台。這些項目預計將於 2025 年和 2026 年啟動。

We are pleased to secure this business in the Chinese market. We believe this will further validate our innovative technology and manufacturing processes, delivering high-quality products and services to meet the evolving needs of the Chinese new energy vehicle market.

我們很高興能夠在中國市場獲得這項業務。我們相信這將進一步驗證我們的創新技術和製造工藝，提供高品質的產品和服務，滿足中國新能源汽車市場不斷變化的需求。

To summarize, the takeaways from today are BorgWarner ended 2024 with strong results. We delivered 2024 outgrowth of just 3%. Our adjusted operating margin was over 10%, and our free cash flow generation was very strong.

總而言之，今天的要點是博格華納在 2024 年取得了強勁的業績。到 2024 年，我們的成長率僅為 3%。我們的調整後營業利潤率超過 10%，而且我們的自由現金流產生非常強勁。

Over the course of the year, we secured new foundational and eProducts business awards, which we believe once again demonstrate our product leadership on both sides of our portfolio. As we look forward, we are expecting to deliver another solid year of 2025 as we focus on what we can control.

在這一年中，我們獲得了新的基礎和電子產品業務獎項，我們相信這再次證明了我們在產品組合兩側的產品領導地位。展望未來，我們期望在 2025 年再創輝煌，因為我們將專注於我們能夠控制的事物。

As Craig will detail, our guidance includes that we expect to: outgrow industry production, deliver an adjusted operating margin above 10%, and continue to generate strong free cash flow.

正如 Craig 所詳細說明的，我們的指導包括：我們期望：超越行業產量，實現 10% 以上的調整後營業利潤率，並繼續產生強勁的自由現金流。

And my priorities align with our 2025 outlook as we will strive to secure new business awards that will allow us to continue to outgrow industry production, we will build upon our existing product portfolio by increasing our eProducts scale and gaining market share.

我的首要任務與我們的 2025 年展望一致，因為我們將努力獲得新的業務獎項，使我們能夠繼續超越行業生產，我們將透過擴大我們的電子產品規模和獲得市場份額來鞏固我們現有的產品組合。

We plan to do this through fostering a culture of innovation, customer intimacy and thoughtful portfolio investments that drive shareholder value. And finally, we continue to drive enhanced financial performance. It's this financial strength and discipline of this company that help differentiate us from our peers, and we intend to continue to focus on that strength as I take over as CEO.

我們計劃透過培育創新文化、客戶親密度和深思熟慮的投資組合來推動股東價值來實現這一目標。最後，我們持續努力提高財務業績。正是公司的財務實力和紀律使我們從同行中脫穎而出，我們打算在我接任執行長期間繼續專注於此優勢。

If we effectively execute these priorities, I believe we will be well positioned to continue to grow the earnings power of BorgWarner, which we believe will drive long-term value for our shareholders for years to come.

如果我們有效地執行這些優先事項，我相信我們將有能力繼續提升博格華納的獲利能力，我們相信這將在未來幾年為我們的股東帶來長期價值。

With that, I'll now turn the call over to Craig.

說完這些，我現在將電話轉給克雷格。

Thank you, Joe, and good morning, everyone. Before I dive into the financials, I'd like to provide a quick overview of our fourth quarter results. First, we reported just over [$3.4 million] in sales which was down approximately 2% versus prior year, excluding FX and M&A. Market production in the quarter was down approximately 4%. So we saw sales outgrowth in the quarter of approximately 220 basis points, which was slightly below our full year outgrowth of 280 basis points.

謝謝你，喬，大家早安。在深入研究財務狀況之前，我想先簡單概述一下我們第四季的業績。首先，我們報告的銷售額略高於 340 萬美元，較上年下降約 2%，不包括外匯和併購。本季市場產量下降約 4%。因此，我們看到本季銷售額成長了約 220 個基點，略低於全年 280 個基點的成長率。

Second, we had strong adjusted operating margin and performance in the quarter at 10.2%. This was driven by solid operational performance, a continued focus on cost controls across the business and restructuring actions. This strong fourth quarter performance allowed us to deliver a full year adjusted operating margin above 10%, which was up 50 basis points from 2023. Third, we had strong free cash flow of $539 million, which allowed us to outperform our 2024 free cash flow guidance and delivered $729 million in free cash flow for the full year.

其次，本季我們調整後的營業利益率和業績強勁，達到 10.2%。這是由穩健的營運績效、對整個業務的成本控制的持續關注以及重組行動所推動的。第四季的強勁表現使我們全年調整後的營業利潤率超過 10%，比 2023 年成長了 50 個基點。第三，我們擁有 5.39 億美元的強勁自由現金流，這使我們能夠超越 2024 年自由現金流指引，並實現全年 7.29 億美元的自由現金流。

Now let's turn to slide 9 for a look at our year-over-year sales walk for Q4. Last year's Q4 sales from continuing operations were just over $3.5 billion. You can see that the weakening US dollar drove a year-over-year decrease in sales of $32 million. Then you can see a decrease in organic sales of about 1.5%, which was 220 basis points above market production. This outgrowth was primarily due to a strong eProducts growth in Europe and Asia as well as strong foundational growth in Europe, North America and the rest of the world.

現在讓我們翻到第 9 張投影片，看看我們第四季的年比銷售情況。去年第四季持續經營銷售額略高於 35 億美元。您可以看到，美元貶值導致銷售額年減 3,200 萬美元。然後你會看到有機銷售額下降了約 1.5%，比市場產量高出 220 個基點。這一成長主要歸功於歐洲和亞洲電子產品業務的強勁成長以及歐洲、北美和世界其他地區基礎業務的強勁成長。

In China, we saw challenges in the quarter due to lower volumes on an existing EV program, which we previously highlighted and declining foundational sales. And finally, the acquisition of Eldor added $6 million of sales year-over-year. Some of all this was just over $3.4 billion of sales in Q4.

在中國，我們本季面臨挑戰，原因是我們之前強調過的現有電動車專案銷售下降以及基礎銷售額的下降。最後，收購 Eldor 使銷售額比去年同期增加了 600 萬美元。其中第四季的銷售額略高於 34 億美元。

Turning to slide 10. You can see our earnings and cash flow performance for the quarter. Our fourth quarter adjusted operating income was $352 million, equating to a strong 10.2% adjusted operating margin. That compares to adjusted operating income from continuing operations of $332 million or 9.4% adjusted operating margin from a year ago.

翻到第 10 張投影片。您可以看到我們本季的收益和現金流表現。我們第四季的調整後營業收入為 3.52 億美元，相當於 10.2% 的調整後營業利潤率。相較之下，去年同期的調整後持續經營營業收入為 3.32 億美元，調整後營業利益率為 9.4%。

On a comparable basis, excluding the impact of foreign exchange and M&A, adjusted operating income increased $37 million on $57 million of lower sales. This is a great result and reflects our ability to deliver profitability despite a declining production environment. This performance was driven by the benefit of our PowerDrive restructuring that we announced in July as well as our continued focus on cost controls across our business. The net impact of Eldor was a $12 million drag on operating income year-over-year.

在可比較基礎上，排除外匯和併購的影響，調整後的營業收入增加了 3,700 萬美元，而銷售額下降了 5,700 萬美元。這是一個很好的結果，反映了我們在生產環境下滑的情況下仍然能夠實現盈利的能力。這項業績得益於我們 7 月宣布的 PowerDrive 重組帶來的好處，以及我們對整個業務成本控制的持續關注。Eldor 的淨影響是，其營業收入年減了 1,200 萬美元。

Our adjusted EPS from continuing operations was up $0.11 compared to a year ago as a result of strong adjusted operating income, lower net interest expense and the impact of our share repurchases during 2024.

由於調整後營業收入強勁、淨利息支出下降以及 2024 年股票回購的影響，我們的調整後持續經營每股收益較去年同期上漲 0.11 美元。

This was partially offset by a higher effective tax rate due to various tax restructuring initiatives that we executed in the quarter. Free cash flow from continuing operations was $539 million during the fourth quarter, which was down $140 million from a year ago as a result of lower business activity compared to 2023 and the timing of customer payments. Our free cash flow for the full year was strong at $729 million.

由於我們在本季實施的各種稅收重組舉措，有效稅率有所提高，但部分抵消了這一影響。第四季來自持續經營的自由現金流為 5.39 億美元，較去年同期下降 1.4 億美元，原因是業務活動較 2023 年同期減少以及客戶付款時間縮短。我們全年的自由現金流強勁，達到 7.29 億美元。

And finally, I'd like to briefly address the $646 million of goodwill and fixed asset impairment charges that we recorded during the fourth quarter. In the fourth quarter of each year, we perform an impairment test of our tangible and intangible assets. The discounted cash flow analysis we performed requires us to make long-term estimates of our sales and operating income and compare that to the carrying value of each business unit.

最後，我想簡單談談我們第四季記錄的 6.46 億美元商譽和固定資產減損費用。每年第四季度，我們會對有形資產和無形資產進行減損測試。我們進行的折現現金流量分析要求我們對銷售額和營業收入進行長期估計，並將其與每個業務部門的帳面價值進行比較。

Due to the continuing delay of BEV adoption across the Western world, our discounted cash flow estimates for our PowerDrive System and Battery & Charging Systems business units from prior years had to be reduced and pushed out.

由於西方世界對純電動車 (BEV) 的採用持續推遲，我們前幾年對動力驅動系統和電池與充電系統業務部門的折現現金流預測不得不減少並推遲。

As a result, the company recorded a goodwill impairment charge of $577 million in the fourth quarter. We also recorded a charge of $69 million, primarily related to certain property, plant and equipment. It's important to note that these items are noncash and have a minimal impact on the future earnings or margin profile of the company.

結果，該公司第四季提列了 5.77 億美元的商譽減損費用。我們還記錄了 6,900 萬美元的費用，主要與某些財產、廠房和設備有關。值得注意的是，這些項目是非現金的，對公司未來收益或利潤率狀況的影響微乎其微。

In our opinion, the delay of BEV adoption in parts of the Western world is exactly why we have built a resilient technology-focused portfolio that we believe will provide strong results, no matter the pace of regional propulsion adoption. The regional BEV option continues to be delayed, and we believe our foundational portfolio will compensate with significant margin and free cash flow generation.

我們認為，西方部分地區對純電動車的採用延遲正是我們建構具有彈性的、以技術為中心的投資組合的原因，我們相信，無論各地區採用電動車的速度如何，該投資組合都將帶來強勁的業績。區域 BEV 選項繼續被推遲，我們相信我們的基礎投資組合將透過可觀的利潤和自由現金流產生來彌補。

Next, on slide 11, I would like to review our perspective on global industry production for '25. We expect our global weighted and light commercial vehicle markets to be down 1% to 3% this year, following a 3% decrease in 2024. This forecast includes potential industry volume headwinds of global tariffs. Looking at this by region, from a light vehicle perspective, we're planning for our weighted North American markets to be down approximately 3% to 4%, primarily driven by inventory headwinds and potential inflation due to tariffs.

接下來，在第 11 張投影片上，我想回顧我們對 25 年全球工業生產的看法。我們預計，繼 2024 年將下降 3% 之後，今年全球加重和輕型商用車市場將下降 1% 至 3%。該預測包括全球關稅可能對產業帶來的影響。按地區來看，從輕型汽車的角度來看，我們預計北美市場的加權銷售量將下降約 3% 至 4%，主要原因是庫存阻力和關稅導致的潛在通膨。

In Europe, we expect our weighted market to be down approximately 4% to 6% year-over-year as we see signs of a lower backlog economic headwinds. And in China, we expect the overall market to be flat to down 1%. This is due to a tough comparison following last year's growth and the possible economic impact of tariffs.

在歐洲，我們預計我們的加權市場將年減約 4% 至 6%，因為我們看到積壓經濟逆風減少的跡象。在中國，我們預期整體市場將持平或下降 1%。這是因為與去年的成長情況進行了艱難的比較，並考慮了關稅可能造成的經濟影響。

With that in mind, now let's take a look at our full year outlook on slide 12. First, as I just highlighted, we have included some level of industry volume headwinds from tariffs in our market volume assumptions. However, we have not incorporated the net cost of tariffs in our financial guidance at this time since the impact to BorgWarner is influenced by multiple factors. These include, but are not limited to, the timing of implementation, any exception on imported materials and our ability to share the impact with our customers and suppliers.

考慮到這一點，現在讓我們來看看第 12 頁的全年展望。首先，正如我剛才強調的那樣，我們在市場容量假設中考慮了關稅帶來的一定程度的行業容量阻力。然而，由於對博格華納的影響受到多種因素的影響，我們目前尚未將關稅淨成本納入我們的財務指導中。這些包括但不限於實施時間、進口材料的任何例外以及我們與客戶和供應商分擔影響的能力。

Now let's move to our outlook. We are projecting total 2025 sales in the range of $13.4 billion to $14 billion. Starting with foreign currencies, our guidance assumes an expected full year sales headwind from weaker foreign currencies of $410 million compared to 2024.

現在讓我們來談談我們的展望。我們預計 2025 年的總銷售額將在 134 億美元至 140 億美元之間。從外幣開始，我們的指導假設是，與 2024 年相比，預計外幣走弱將導致全年銷售逆風 4.1 億美元。

As I just highlighted, we expect our end markets to be down 1% to 3% for the year. However, we expect the company to outperform market production by 100 to 300 basis points which once again demonstrates the resiliency of our portfolio that we believe is positioned to outgrow market production.

正如我剛才強調的那樣，我們預計今年我們的終端市場將下降 1% 至 3%。然而，我們預計該公司的表現將比市場產量高出 100 至 300 個基點，這再次證明了我們的投資組合的彈性，我們相信該投資組合能夠超越市場產量。

It's important to note that our guidance includes a 30 basis points outgrowth headwind from lower battery cell prices, which we directly pass through to our customers. Based on our updated outlook, we expect our organic sales change to be down 2% to up 2% year-over-year.

值得注意的是，我們的預期包括電池價格下跌帶來的 30 個基點的成長阻力，我們將此影響直接轉嫁給我們的客戶。根據我們最新的展望，我們預計有機銷售額變化將年減 2% 至成長 2%。

Now let's switch to margins. We expect our full year adjusted operating margin to be in the range of 10.0% to 10.2% compared to our 2024 adjusted operating margin of 10.1%. The low end of our margin outlook contemplates the business delivering a full year decremental conversion in the low double digits. While the high end of our outlook assumes an incremental conversion in the high teens. We view this as strong underlying performance, building off 2024 that well exceeded our expectations.

現在讓我們切換到邊距。我們預計全年調整後營業利益率將在 10.0% 至 10.2% 之間，而 2024 年調整後營業利潤率為 10.1%。我們的利潤率預期低端是預計該業務全年的轉換率將下降到兩位數以下。而我們預測的高端情況是增量轉換率將達到十幾歲左右。我們認為這是強勁的潛在表現，以 2024 年為基礎，遠遠超出我們的預期。

Based on this sales and margin outlook, we're expecting full year adjusted EPS in the range of $4.05 to $4.40 per diluted share. We expect full year free cash flow to be in the range of $650 million to $750 million with the 2025 midpoint being a decline versus 2024 strong results due to FX headwinds. With that, that's our 2025 outlook.

根據此銷售和利潤前景，我們預計全年調整後每股收益將在 4.05 美元至 4.40 美元之間。我們預計全年自由現金流將在 6.5 億美元至 7.5 億美元之間，由於外匯不利因素，2025 年的中位數將下降，而 2024 年的強勁業績將下降。這就是我們對 2025 年的展望。

So let me summarize my financial remarks. Overall, we delivered solid 2024 results despite a difficult production environment. We delivered a very strong 10.1% margin, which was 50 basis points higher than 2023 and well ahead of the 9.2% to 9.6% margin reflected in our initial 2024 guidance.

讓我總結一下我的財務評論。總體而言，儘管生產環境艱難，但我們仍取得了穩健的 2024 年業績。我們實現了非常強勁的 10.1% 的利潤率，比 2023 年高出 50 個基點，遠高於我們最初預測的 2024 年利潤率 9.2% 至 9.6%。

This great performance is a result of our focus on appropriately managing our costs across our business. We generated strong free cash flow of $729 million. Now as we look ahead to 2025, our outlook aligns with the priorities Joe highlighted earlier.

這項出色業績是我們注重合理管理整個業務成本的結果。我們產生了7.29億美元的強勁自由現金流。現在，展望 2025 年，我們的展望與喬先前強調的優先事項一致。

First, we expect to continue to outperform market production with an expected full year outgrowth of 100 to 300 basis points despite headwinds from battery cell pricing and BEV program delays. Second, we expect to once again deliver an adjusted operating margin above 10%. We believe this shows our ability to manage our cost structure effectively, even in light of a declining production environment.

首先，儘管面臨電池單元定價和 BEV 專案延遲的阻力，我們預計其產量仍將繼續超過市場產量，預計全年增長率將達到 100 至 300 個基點。其次，我們預期調整後的營業利潤率將再次達到 10% 以上。我們相信，這表明即使在生產環境惡化的情況下，我們仍有能力有效地管理成本結構。

Finally, we expect to have another year of strong free cash flow, which we believe in combination with our investment-grade balance sheet, will allow us to continue to invest in our business while navigating a challenging and uncertain market backdrop.

最後，我們預計今年的自由現金流將保持強勁，我們相信，結合我們的投資等級資產負債表，這將使我們能夠在充滿挑戰和不確定性的市場背景下繼續投資於我們的業務。

As I look back on our 2024 results and our 2025 outlook, I'm extremely proud of the BorgWarner team around the globe and their ability to deliver strong financial results during a challenging and volatile market backdrop.

回顧我們 2024 年的業績和 2025 年的展望，我為全球博格華納團隊在充滿挑戰和動盪的市場背景下取得強勁財務業績的能力感到非常自豪。

With that, I'd like to turn the call back over to Pat.

說完這些，我想把電話轉回帕特。

Thank you, Craig. Nick, we're ready to open it up for questions.

謝謝你，克雷格。尼克，我們準備好開始回答問題了。

(Operator Instructions) John Murphy, Bank of America ML.

（操作員指示）約翰·墨菲，美國銀行 ML。

Fred, congratulations. Look forward to visiting you in Burgundy, It will be a lot of fun hopefully. And I apologize you have to deal with us now. But -- first question, the portfolio that is well balanced, almost in whichever direction powertrain go. It seems like a very good way to be positioned and you're set there.

弗雷德，恭喜你。期待去勃根地拜訪您，希望會很有趣。我很抱歉您現在必須與我們打交道。但是——第一個問題，無論動力總成朝哪個方向發展，產品組合都是非常平衡的。這看起來是一種非常好的定位方式，而且您已經定位在那裡了。

I'm just curious, as you look at sort of the short-term swings that we're seeing in programs, stuff like Ford canceling the three-row EV last year. When those shifts happen very quickly, how well do you think the portfolio is hedged?

我只是很好奇，當你看到我們在專案中看到的短期波動時，例如福特去年取消了三排電動車。當這些變化發生得非常快時，您認為投資組合的對沖效果如何？

I think you pick up those lost sales with something like explore the ICE version or something like that. I mean, how quickly does that get balanced out? And maybe sort of with that -- is that one of the key drivers of why we're seeing this $600 million in organic sales? Or what else is driving that $600 million organic variance?

我認為你可以透過探索 ICE 版本或類似的東西來彌補那些失去的銷售額。我的意思是，多久才能平衡？或許是這樣——這是我們看到 6 億美元有機銷售額的關鍵驅動因素之一嗎？或者還有什麼因素導致了這 6 億美元的有機差異？

John, so if you look at the ERFQs outside of China, they've been slowing a little bit, and we've seen some delays or cancellations. On the other side, we see more RFQs for foundational products, and those usually result in higher volumes of our existing products, we're serving a customer with or it might be extensions because they've delayed EV tracker SUV. So we're in a great position to take advantage of that and also be ready when they launch those new programs on EVs and the market's ready.

約翰，如果你看看中國以外的 ERFQ，你會發現它們的速度有所放緩，而且我們看到了一些延遲或取消的情況。另一方面，我們看到更多針對基礎產品的 RFQ，這通常會導致我們現有產品的銷售增加，我們正在為客戶提供服務，或者可能是延期，因為他們推遲了 EV 追蹤器 SUV。因此，我們處於有利位置來利用這一點，並且在他們推出新的電動車計劃和市場準備就緒時做好準備。

Okay. And that $600 million organic variance in the '25 outlook, is that being driven by deltas in volume or program shifts? What's the key driver of that variance?

好的。那麼 25 年展望的 6 億美元有機差異是因為數量變化還是專案轉變所致？造成這種差異的關鍵因素是什麼？

So for the outlook or, let's say, the 2024 results, as you know, we outgrew those markets in that 2% to 3% range. As we look forward, we continue to expect that outgrowth, as Craig had mentioned, in 2025.

因此對於前景，或者說 2024 年的結果，如您所知，我們的成長速度超過了這些市場 2% 到 3% 的範圍。展望未來，我們將繼續期待 Craig 所提到的 2025 年將實現成長。

Okay. And then just maybe one quick follow-up. Could you just remind us what exposure is right now with domestic versus international players? And where you think that's going to land in '25? And how much it may shift towards the domestics in the next few years?

好的。然後可能只需要一次快速的跟進。您能否提醒我們一下，目前國內球員和國際球員的曝光率如何？您認為 25 年的結果會是如何呢？未來幾年，這種趨勢會在多大程度上轉向國內市場？

Specifically in China or ?

特別是在中國或？

In China, specifically, yes.

具體來說，在中國，是的。

Yes. So as you know, China is about 20% of our global sales. And in China, 75% of our total sales are with the Chinese OEMs. So we're very well positioned with them as they grow in their domestic market and in support of their strong export. One other thing I mentioned, 90% of that business is on NED with those domestic, so we're in a great position.

是的。如您所知，中國約占我們全球銷售額的 20%。在中國，我們 75% 的銷售額來自中國 OEM。因此，隨著他們國內市場的成長以及強勁的出口成長，我們為他們提供了非常有利的地位。我提到的另一件事是，90% 的業務都是在 NED 上進行的，並且是國內業務，因此我們處於有利地位。

Colin Langan, Wells Fargo.

富國銀行的科林·蘭根。

Congrats Fred on your retirement. It's been a pretty impressive pivots or any powertrain engine leadership. One, powertrain, any color on how eProducts should perform this year? I noticed the battery side was a bit weaker sequentially. And I think there's some small in North America you've indicated.

祝賀弗雷德退休。這是一個相當令人印象深刻的轉折點，或者說是任何動力系統引擎的領導力。首先，動力系統，您對今年的 eProducts 表現有何看法？我注意到電池方面的電量逐漸減弱了一點。我認為，正如您所指出的，北美也存在一些小規模的市場。

And should we start seeing a help -- I know Europe with regulations, there should be a light vehicle there likely some increase in the US. Does that start showing up in maybe the second half? Or how should we think about it?

而且如果我們開始看到幫助——我知道歐洲有法規，那麼輕型車輛的數量在美國可能會增加。這種現象會在下半場開始顯現嗎？或者說我們該如何去思考這個問題？

So Colin, we are growing year-over-year in the eProducts product business. It has softened a little bit, mainly due to the battery business, which you referenced. The way we -- I guess you want to think about it is we are flat year-over-year in battery sales when it comes to units.

所以 Colin，我們的電子產品業務逐年成長。它已經有所軟化，主要由於您提到的電池業務。我想你會認為，我們的電池銷量與去年同期持平。

The revenue was down a little bit, mainly due to sale pricing, which is bringing the overall revenue down. But overall, it's greater than a $600 million business. We really like that Akasol business we bought, and it's ahead of where we purchased it despite a lot of the turmoil and despite the lower sale pricing.

收入略有下降，主要是由於銷售定價，導致整體收入下降。但總體而言，這是一個價值超過 6 億美元的生意。我們真的很喜歡我們收購的 Akasol 業務，儘管經歷了很多動盪並且銷售價格較低，但它的業績仍然比我們購買時更好。

Got it. And then the guide for this year has 200 basis points growth over market. And in the past, you've kind of talked about 4%. I think you've called out a couple of things. I mean should we think about eventually getting back to something like a 4%? Or is this lower EV adoption just kind of holding that back for several years from now?

知道了。今年的預期是比市場成長 200 個基點。過去，您曾談論過 4% 的問題。我認為你已經指出了一些事情。我的意思是我們是否應該考慮最終回到 4% 左右的水平？或者說，電動車普及率較低是否會在未來幾年阻礙這項進程？

Yes. The past few years, our outgrowth has been in that 2% to 3% range. So 2025 is close to this range. My focus is really on outgrowing our markets. We think the portfolio is the right one. In the short term, the biggest driver in 2025 of the lower outgrowth is the delay of a North American EV program, which we previously disclosed. And as I mentioned, the sale pricing on the battery pack business.

是的。過去幾年，我們的成長率一直維持在2%到3%的範圍內。因此 2025 年接近這個範圍。我的重點其實是超越我們的市場。我們認為這個投資組合是正確的。短期內，2025 年成長放緩的最大驅動因素是我們先前揭露的北美電動車計畫的延遲。正如我所提到的，電池組業務的銷售定價。

My focus is really to outgrow on both sides of the portfolio. We want our foundational products to do what they can to expand market share, and we're in a great position because, as you know, on our foundational products, we're number one or number two in that side of the business. And then on the east side, as new launches and RFQs start to come out, we're in a good position to also outgrow those markets.

我的重點實際上是讓投資組合兩側都成長。我們希望我們的基礎產品能夠盡可能地擴大市場份額，而且我們處於有利地位，因為如你所知，就我們的基礎產品而言，我們在該業務領域排名第一或第二。然後在東區，隨著新產品的推出和 RFQ 的出現，我們處於一個良好的位置，可以超越這些市場。

Ryan Brinkman, JPMorgan.

摩根大通的瑞安·布林克曼。

Just curious with regard to the products that you manufacture in Mexico, the extent to which they are installed on products in Mexico versus brought across the US border? And then what -- any preliminary conversations with automakers might look like in terms of the pass-through of any potential tariff costs?

我只是好奇，對於您在墨西哥生產的產品，這些產品在墨西哥安裝的程度與運送過美國邊境的程度如何？那麼，就轉嫁潛在關稅成本而言，與汽車製造商的初步對話會是什麼樣的呢？

Yes, Ryan, let me take that one. So I'll start by saying we generally produce in the same regions as our customers produce. But when we look at 2024 and the amount of imported material and value to the US, it was about $875 million. When you break that down, about half of it originated in Mexico, 10% of it originated in Canada, 5% originated in China. Ultimately, there's a lot of news going on right now. We're going to continue to watch that. But ultimately, if there's an impact to BorgWarner, we're going to need to find a way to share that with our customers and our suppliers. That's how we're thinking about it.

是的，瑞安，讓我來接手這個。首先我想說的是，我們通常在與客戶相同的地區進行生產。但當我們展望2024年，美國進口材料的數量和價值時，這個數字約為8.75億美元。具體來說，大約一半來自墨西哥，10%來自加拿大，5%來自中國。最終，現在有很多新聞。我們將繼續關注此事。但最終，如果對博格華納產生影響，我們將需要找到一種方法與我們的客戶和供應商分享這項影響。我們就是這樣想的。

Luke Junk, Baird.

盧克瓊克，貝爾德。

My congratulations to you as well, Fred. Maybe starting with the outgrowth, hoping you could just help us understand, at least directionally what that assumes for eProducts and PowerDrive? Specifically in Europe, where you had a big launch here in '24 and in China relative to what of course, continued tailwinds around NAV adoption overall. And I guess any offsets we should be thinking beyond what you've already mentioned in the existing book of business in either go as well?

我也祝賀你，弗雷德。也許從結果開始，希望您能幫助我們理解，至少在方向上，這對 eProducts 和 PowerDrive 有何假設？特別是在歐洲，你們在 24 年在這裡進行了大規模發布，而在中國，相對於整體上 NAV 採用持續的順風。我想，除了您在現有業務書中已經提到的內容之外，我們還應該考慮其他抵銷措施嗎？

Yes, Luke. So we see EV adoption increasing year-over-year in all the markets. When we think about our segments, one of the things we did last July, as you recall, we organized into four operating segments to give better transparency in how each of those businesses are performing. So we think that's going to be a good indicator of how the businesses are performing in terms of outgrowth.

是的，盧克。因此，我們看到所有市場的電動車採用率都在逐年增加。當我們思考我們的分部時，正如你們所記得的，我們去年 7 月所做的一件事就是，我們將其劃分為四個營運分部，以便更好地透明地了解每個業務的運作情況。因此，我們認為這將是衡量企業成長表現的一個很好的指標。

Got it. And then for my follow-up, hoping you could just maybe expand on your comments around foundational awards. It's now been a couple of quarters in a row, you've highlighted a good number in Foundation awards, as you mentioned, you're seeing a reacceleration in RF. I guess what I'm trying to square is how that might translate to outgrowth, not this year, but looking out '26, '27? And especially, it seems like there may have been a well just given where the industry's focus was a few years ago in those awards, how that might translate to some pickup in '26 plus?

知道了。然後作為我的後續問題，希望您可以擴展您對基礎獎項的評論。現在已經連續幾個季度了，您在基金會獎項中取得了可觀的成績，正如您所提到的，您看到 RF 正在重新加速。我想弄清楚的是，這可能轉化為成長，不是今年，而是展望 26 年、27 年？尤其是，考慮到幾年前該行業的重點放在這些獎項上，這如何可能轉化為 26 年以後的回升？

Yes. As you mentioned, we have highlighted awards on both sides of our portfolio and an increasing number on the foundational side. I think that speaks to the strength of our portfolio. And as customers are evolving their cycle plans, they're looking toward us since we're number one and number two in those foundational products to support them. Those often look like program extensions. In some cases, it may be some new programs that they're putting out for bid. But I think what's important here is we want to outgrow across our entire portfolio. And those are great examples that we highlighted, you see wins in both the foundational and on the East side.

是的。正如您所說，我們在投資組合的兩個方面都獲得了獎項，而且基礎方面的獎項數量也在增加。我認為這證明了我們的投資組合的實力。隨著客戶不斷改進他們的周期計劃，他們也將目光投向我們，因為我們在這些基礎產品方面排名第一和第二，可以為他們提供支援。這些通常看起來像是程式擴充。在某些情況下，他們可能會招標一些新的項目。但我認為，最重要的是，我們希望我們的整個投資組合都能成長。這些都是我們強調的很好的例子，您可以看到基礎部分和東區都取得了勝利。

Joe Spak, UBS.

瑞銀的喬·斯帕克（Joe Spak）

And Fred, again, my congrats as well and enjoy. Just maybe just one on the guidance, just a little bit more color. I just want to understand like that is what you're saying that North America weighted down 3% to 4%. And I think if we look at some third parties, it's closer to that, too. Is that delta sort of the I guess, conservative that you're sort of putting in or maybe some disruption as to what could happen if tariffs come in? I just want to be clear on that.

還有弗雷德，我再次向你表示祝賀，祝你玩得愉快。可能只是一個指導，只是多一點顏色。我只是想了解您所說的北美權重下降了 3% 到 4%。我認為，如果我們看看第三方，情況也更接近於此。我猜，您所提出的這種差異是保守的，還是對加徵關稅後可能出現的一些幹擾？我只是想澄清這一點。

And then I don't think I heard on a little bit late. I don't think I heard sort of any eProducts overall. I know you have the new segments, but any sort of products sort of expectations for this year. Is there any color you can provide there, just so we can sort of track, I guess, performance relative to some of the underlying market dynamics?

然後我覺得我有點晚才聽到。總體而言，我認為我沒有聽說過任何電子產品。我知道你們有新的細分市場，但對今年的任何產品都有期待。您能否提供一些細節，以便我們能夠追蹤相對於某些潛在市場動態的表現？

Yes. So starting with some color on the market. We formulate our industry forecast internally. And directionally, for the last few years, we've been fairly accurate. When we think about the global markets, maybe we can break it down a little bit. So that minus-1% to minus-3%, starting with North America, down 3% to 4%. As you know, there's a lot of inventory in the system. We've also baked in a little bit of headwinds pending tariffs that may come. In Europe, 4% to 6% down due to signs of both backlog and economic headwinds that they're seeing. China is a brighter spot. They're flat to then 1%. So that's a little bit of color on your first question.

是的。所以從市場上的一些顏色開始。我們內部製定產業預測。從方向上看，過去幾年來，我們的目標相當準確。當我們考慮全球市場時，也許我們可以稍微分解一下。因此，從北美開始，下降 1% 到 3%，下降 3% 到 4%。如您所知，系統中有很多庫存。我們也考慮到了可能即將出台的關稅帶來的一些阻力。在歐洲，由於積壓和經濟逆風的跡象，銷售額下降了 4% 至 6%。中國是一片亮點。然後它們持平至 1%。這對您的第一個問題有一點解釋。

Yes. I'll jump in with sale -- Reported 2024 sales a little over $2.3 billion for eProducts. As we move forward, you'll see disclosure in our 10-Qs breaking out eProducts from foundational. And so you'll see that as we move forward.

是的。我將加入銷售行列——據報道，2024 年電子產品的銷售額將略高於 23 億美元。隨著我們不斷前進，您將看到我們的 10-Q 中揭露了從基礎產品中分離出來的電子產品。隨著我們不斷前進，你會發現這一點。

But anything on eProducts in relation to the overall guidance?

但是有關電子產品方面有任何與整體指導相關的內容嗎？

We're not providing that outlook. As Joe indicated, our focus has outgrown both sides of our portfolio.

我們不提供這樣的觀點。正如喬所言，我們的關注點已經超越了投資組合的兩個面向。

Okay. Joe, the second question is thinking in some of your prepared remarks, you talked about building on your portfolio organically and inorganically. And I don't think that's a change from what you've talked about in the past as an organization, but there had been some messaging or communication that inorganic has been paused.

好的。喬，第二個問題是，在你準備好的一些發言中，你談到了有機和無機地建立你的投資組合。我不認為這與你們過去作為一個組織所談論的內容有什麼變化，但是曾經有一些資訊或交流表明無機活動已經暫停。

I guess I'm wondering as you sort of take over here, how you think about that going forward, especially since we've seen some activity and M&A in the space, and I would even say sort of more broadly in the markets. Like do you -- is there -- do you expect a little bit more focus on inorganic opportunities as we move forward from here?

我想知道，當您接手這個職位後，您對未來有何看法，尤其是因為我們已經看到該領域的一些活動和併購，我什至可以說在更廣泛的市場上。就像您——是否有——您是否預計，隨著我們繼續前進，我們會更專注於無機機會？

Yes. So we will continue to invest organically as our top priority. We have a terrific product portfolio, and we see lots of opportunities to keep building on that and growing that to outgrow the market. We will continue to look at acquisitions as it remains an important part of our strategy.

是的。因此，我們將繼續把有機投資作為我們的首要任務。我們擁有出色的產品組合，我們看到了許多機會，可以在此基礎上不斷發展壯大，超越市場。我們將繼續考慮收購，因為它仍然是我們策略的重要組成部分。

So the industry turbulence that we're all witnessing right now actually provides a unique opportunity for BorgWarner in our financial strength. So as we execute them, if we execute them, it will be in a very thoughtful way, and our focus is to create long-term shareholder value.

因此，我們現在所見證的行業動盪實際上為博格華納的財務實力提供了獨特的機會。因此，當我們執行這些計劃時，我們會以非常周到的方式執行，我們的重點是創造長期股東價值。

Edison Yu, Deutsche Bank.

德意志銀行的 Edison Yu。

Congrats, Fred. I want to ask about EREVs. You've obviously had quite a bit of success in China with that. How are those conversations going in US and Europe? And do you think the volumes there could, in three or four years be similar?

恭喜，弗雷德。我想問一下有關 EREV 的問題。顯然，您在中國已經取得了相當大的成功。美國和歐洲的對話進展如何？您認為三、四年後那裡的產量會達到相似水準嗎？

So we have seen some success on EREVs in China, as you mentioned. I would say the other regions are starting to look at EREVs as a way to especially (technical difficulty). -- So -- we don't see it in big volumes just yet, but we do see it as an emerging option architecture for the customers to meet their emission requirements.

正如您所說，我們看到了中國在增程式電動車方面取得了一些成功。我想說其他地區也開始將 EREV 視為解決（技術​​難題）的方法。 -- 所以 -- 我們目前還沒有看到它的大規模應用，但我們確實將其視為客戶滿足其排放要求的一種新興選擇架構。

Understood. And just one thing on the guidance. For China, are you assuming the scrappage incentives still continue? I think there's probably -- to your point, you mentioned some risk. But in terms of upside, just curious what kind of you're assuming there?

明白了。關於指導，只有一件事。對於中國，您是否認為報廢激勵措施還會持續？我認為可能存在——就你的觀點而言，你提到了一些風險。但就上行潛力而言，我只是好奇您對此有何假設？

No, we're really looking at a China market that is flattish year-over-year. So we haven't factored in that at this point.

不，我們實際上看到的是中國市場同比持平。因此我們目前還沒有考慮到這一點。

Emmanuel Rosner, Wolf Research.

伊曼紐‧羅斯納 (Emmanuel Rosner)，沃爾夫研究公司。

My first question is on the CapEx outlook. Can you provide a little more context around the lower CapEx budget? And to extend these, I guess, extra free cash flow would go towards buybacks versus something else?

我的第一個問題是關於資本支出前景。您能否提供一些有關較低資本支出預算的背景資訊？為了延長這些時間，我猜，額外的自由現金流將用於回購而不是其他用途？

Yes. So let me address CapEx. When you go back a few years, our CapEx was in kind of the mid-5% as a percent of sales, 5.5%, 5.4%. We saw this year come down to below 5%. Our guidance as we look at it is maintaining that around that 4%, high -- 5% as a percentage of sales. So that's how you should think about it. From a buyback prospective, we have not incorporated anything into this guide.

是的。所以讓我來談談資本支出。回顧過去幾年，我們的資本支出佔銷售額的比例約為 5% 左右，5.5% 或 5.4%。我們看到今年這一比例下降到了 5% 以下。我們的指導方針是將銷售額的百分比維持在 4% 左右，也就是 5% 左右。所以你應該這樣思考。從回購的角度來看，我們沒有將任何內容納入本指南。

So I wanted to address that a little bit. When we step back and think about buybacks as a company, we've deployed a lot of cash to shareholders, about $3.4 billion since 2020. So we've deployed a lot of cash to our shareholders.

所以我想稍微談談這個問題。當我們回顧並思考公司回購時，我們已經向股東部署了大量現金，自 2020 年以來已達約 34 億美元。因此我們向股東投入了大量現金。

I want to step back and talk about our goal. Our goal as a company is to really focus on earnings and cash flow, grow earnings and cash flow over time and about buybacks for this year. We're going to use the full power of BorgWarner to focus on earnings growth to focus on cash flow growth. As we continue throughout the year, we'll look at this lever as an item of pull, and we'll look at it appropriately as we move forward. That's how we're thinking about buybacks this year.

我想退一步來談談我們的目標。作為一家公司，我們的目標是真正專注於收益和現金流，隨著時間的推移增加收益和現金流，並專注於今年的回購。我們將充分利用博格華納的力量，將重點放在獲利成長上，以專注於現金流成長。隨著我們全年的持續發展，我們將把這個槓桿視為拉動項，並在前進的過程中適當地看待它。這就是我們今年回購的想法。

Got it. That's helpful. And then how are you thinking about the gross outlook this year and also beyond for EV products in China, specifically given a very competitive market dynamics?

知道了。這很有幫助。那麼，考慮到競爭非常激烈的市場形勢，您如何看待今年及以後中國電動車產品的整體前景？

Yes. So I mean, more broadly speaking, 20% of our total business is in China. And as we mean, we're very strong with the Chinese OEMs. In fact, with Chinese OEMs of over 90% of the market share on EVs and they are 75% of our business. So we feel very well positioned with the Chinese, whether they're serving the domestic market or as we've seen over the last few years, exporting those vehicles.

是的。所以，更廣泛地說，我們總業務的 20% 在中國。正如我們所說，我們與中國 OEM 的合作關係非常緊密。事實上，中國原始設備製造商佔據了電動車市場 90% 以上的份額，占我們業務的 75%。因此，我們感覺與中國客戶相比，我們處於非常有利的地位，無論他們是服務國內市場，還是如我們在過去幾年所看到的，出口這些汽車。

Dan Levy, Barclays.

巴克萊銀行的丹‧利維 (Dan Levy)。

Fred, congratulations to you. I wanted to first just start with a follow-up on that last question there. PowerDrive was disappointing or soft in 2024. Maybe you can give us a flavor for what turns around in that business? And maybe you could just then remind us why Asia in PowerDrive was soft as was despite EV in China doing as well as it did?

弗雷德，祝賀你。首先，我想先回答最後一個問題。2024 年，PowerDrive 表現令人失望或疲軟。也許您可以跟我們講講這個行業的轉機？也許您可以提醒我們，為什麼儘管中國的電動車市場表現良好，但亞洲的 PowerDrive 市場表現卻很疲軟？

Yes. Maybe I'll start on the year-over-year performance. So we were down a little over $200 million in sales. When you think about that, that was really on the foundational side of the portfolio as customer program is pending. But when you look at the e-side of the portfolio, it was actually relatively flat, and there was just volatility in the market. And I'll let Joe comment on going forward.

是的。或許我應該從同比表現開始說起。因此我們的銷售額下降了2億多美元。如果您考慮到這一點，您會發現這確實是投資組合的基礎方面，因為客戶計劃尚未完成。但當你看看投資組合的電子端時，它實際上相對平穩，只是市場存在波動。我會讓喬對接下來的事情發表評論。

Right. So as we look forward in 2025, we're in the middle of launching a number of new products and platforms. So that's what's really bringing the additional growth on the PDF side of the business.

正確的。展望 2025 年，我們即將推出一系列新產品和平台。這才是真正為 PDF 業務帶來額外成長的因素。

And how much of that is China?

其中有多少是中國？

Yes. We don't break out specifically China, but let's say that there are strong -- they've got a strong position in the overall market. I'll let Pat maybe cover that in a follow-up.

是的。我們不會特別指出中國市場，但我們可以說，中國市場很強大——他們在整個市場上佔據強勢地位。我會讓帕特在後續報道中談到這一點。

Okay. And then as a follow-up, I wanted to just understand the EBIT bridge. And maybe we could just compare versus 2024 because on organic revenue flat or down slightly, you still had EBIT up some $60 million.

好的。然後作為後續，我只想了解 EBIT 橋。也許我們可以與 2024 年進行比較，因為有機收入持平或略有下降，但息稅前利潤仍上漲了約 6000 萬美元。

Now in '25, you've talked about restructuring benefits for eProducts, and I would presume there's going to be some pricing benefits for programs that you tooled for, but the volumes never appreciate. So -- why aren't we seeing maybe a little more margin benefit given these developments?

現在到了'25年，您已經談到了重組eProducts的好處，並且我推測您所設計的項目會有一些定價方面的好處，但是數量永遠不會升值。那麼——鑑於這些發展，為什麼我們沒有看到更多的利潤收益呢？

Yes. So let me walk through the guide. When you start with last year's sales, $14.1 billion, the midpoint of our guide is $13.7 billion. And when you look at the difference and exclude foreign exchange, again, that $410 million, we're basically slightly up about 40 basis points, against the market backdrop that we expect is down 2%.

是的。那麼就讓我來介紹一下這個指南。如果從去年的銷售額 141 億美元開始算，那麼我們的指導中點就是 137 億美元。當您查看差額並排除外匯時，那 4.1 億美元基本上略有上漲約 40 個基點，而我們預計市場背景將下降 2%。

So that's where you get about our 250 basis points of outgrowth. As you look at our EBIT line, we're maintaining 10.1% on that relatively flat sales. As we look at the low end of the guide, we're basically decrementing at 10% at the high end in the mid-teens. So we feel really good about the performance you're seeing in the guide. That's how we're thinking about it. It does incorporate the savings year-over-year from our reproduct restructuring.

這就是我們大約 250 個基點的成長。從我們的息稅前利潤來看，我們的銷售額保持了 10.1% 的相對穩定。當我們查看指南的低端時，我們基本上在十幾歲的中期以 10％ 的幅度遞減高端。因此，我們對您在指南中看到的表現感到非常滿意。我們就是這樣想的。它確實包含了我們產品重組帶來的逐年節省。

And what was unique in 2024 that is not repeating in '25 that you had such strong incremental

2024 年的獨特之處在於，它不會重複 2025 年的強勁增量

I think when you look at our performance in 2024, we really focused on restructuring savings. We focused on cost control across the business, including GSM and productivity. And we're maintaining that as we look into this year. And so we feel really good with where we landed in '24 and this outlook for 2025. And we're going to keep our focus on cost control as we move forward.

我認為，當你看看我們 2024 年的表現時，我們真正關注的是重組儲蓄。我們專注於整個業務的成本控制，包括 GSM 和生產力。展望今年，我們仍將堅持這一觀點。因此，我們對 2024 年的成績和 2025 年的展望感到非常滿意。我們將繼續把重點放在成本控制上。

Thank you all for your great questions today. If you may have additional follow-ups, feel free to reach out to me or my team. With that, Nick, you can go ahead and conclude today's call.

感謝大家今天提出的精彩問題。如果您還有其他後續問題，請隨時與我或我的團隊聯繫。尼克，就這樣，你就可以結束今天的通話了。

Thank you. This concludes the BorgWarner 2024 fourth quarter and full year results conference call. You may now disconnect.

謝謝。博格華納 2024 年第四季和全年業績電話會議到此結束。您現在可以斷開連線。