Stock Alert: BorgWarner Shares Edge Up In Initial Trading

(RTTNews) - BorgWarner Inc. (BWA) shares are trading slightly up in morning trading. On Tuesday, the shares had a hit when it agreed to acquire Delphi and lowered sales outlook.

The company had agreed to acquire Delphi Technologies Plc (DLPH) in an all-stock transaction and announced the $3.3 billion deal on Tuesday. The transaction is expected to be earnings accretive in the second full year, after closing the deal. In the new entity, BorgWarner stockholders will own about 84 percent, and Delphi stockholders, 16 percent.

On Tuesday, the automotive industry components and parts supplier, said it expects 3.4 percent decline in sales for full year 2019 from the previous year, but 0.7 percent increase, excluding items. For 2020, the company now expects net sales in a range of $9.750 billion to $10.08 billion. The guidance reflects impact from Delphi acquisition.

Depreciation of the Euro, Chinese Renminbi and Korean Won against the U.S. dollar is also expected to reflect on its 2020 results.

BWA is currently trading at 35.74, up around 0.87 percent from the previous close of 35.43.