DETROIT — BorgWarner Inc. saw its sales drop in the first quarter and lowered its full-year guidance because of the impact of COVID-19, the supplier said Wednesday.
The turbochargers and electric motors supplier said net sales for the quarter fell 11 percent to $2.28 billion. BorgWarner's drivetrain segment net sales dropped 12 percent to $860 million, while the supplier's engine segment sales were down 10 percent to $1.43 billion, the company said in a statement.
Net income fell 19 percent for the quarter to $129 million while adjusted operating income dropped 21 percent to $234 million from last year's period.
"Given the pace the shutdowns occurred, we think this is a relatively good outcome," CEO Fred Lissalde told investors in a call Wednesday about the company's results. "Overall, we expect a very challenging environment in 2020, especially in the second quarter."
As a result of the downturn brought on by the pandemic, Lissalde said BorgWarner has implemented a 20 percent temporary salary reduction for the senior executive leadership team and board of directors, and up to 10 percent temporary base pay reductions for other salaried employees.
The company also has experienced plant closures, temporary layoffs and other reductions in staff because of lower production.
Shares of BorgWarner closed Wednesday's trading up 4.1 percent to $28.07.