Page
No.
|
|
PART
I. Financial
Information
|
|
Item
1. Financial Statements
|
|
Condensed
Consolidated Balance Sheets as of June
30, 2007 (Unaudited) and December 31, 2006
|
3
|
Condensed
Consolidated Statements of Operations (Unaudited) for the three
and six
months ended June 30, 2007 and 2006
|
4
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) for the six months
ended
June 30, 2007 and 2006
|
5
|
Notes to Condensed Consolidated Financial Statements
(Unaudited)
|
6
|
Item
2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
|
23
|
Item
3. Quantitative and Qualitative Disclosures About Market
Risk
|
32
|
Item
4. Controls and Procedures
|
32
|
PART
II. Other
Information
|
|
Item
1. Legal Proceedings
|
34
|
Item
2. Repurchases of Equity Securities
|
34
|
Item
4. Submission of Matters to a Vote of Security
Holders
|
34
|
Item
6. Exhibits
|
36
|
SIGNATURES
|
37
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
|
$ |
118.5
|
$ |
123.3
|
||||
Marketable
securities
|
58.4
|
59.1
|
||||||
Receivables
|
848.3
|
744.0
|
||||||
Inventories
|
424.6
|
386.9
|
||||||
Deferred
income taxes
|
36.7
|
33.7
|
||||||
Prepayments
and other current assets
|
95.6
|
90.5
|
||||||
Total
current assets
|
1,582.1
|
1,437.5
|
||||||
Property,
plant & equipment, net
|
1,476.7
|
1,460.7
|
||||||
Investments
& advances
|
218.8
|
198.0
|
||||||
Goodwill
|
1,095.4
|
1,086.5
|
||||||
Other
non-current assets
|
402.6
|
401.3
|
||||||
Total
other assets
|
1,716.8
|
1,685.8
|
||||||
Total
assets
|
$ |
4,775.6
|
$ |
4,584.0
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Notes
payable
|
$ |
87.8
|
$ |
151.7
|
||||
Accounts
payable and accrued expenses
|
925.6
|
843.4
|
||||||
Income
taxes payable
|
34.9
|
39.7
|
||||||
Total
current liabilities
|
1,048.3
|
1,034.8
|
||||||
Long-term
debt
|
557.6
|
569.4
|
||||||
Other
non-current liabilities:
|
||||||||
Retirement-related
liabilities
|
668.0
|
660.9
|
||||||
Other
|
315.4
|
281.4
|
||||||
Total
other non-current liabilities
|
983.4
|
942.3
|
||||||
Minority
interest in consolidated subsidiaries
|
161.4
|
162.1
|
||||||
Common
stock
|
0.6
|
0.6
|
||||||
Capital
in excess of par value
|
905.9
|
871.1
|
||||||
Retained
earnings
|
1,161.9
|
1,064.1
|
||||||
Accumulated
other comprehensive loss
|
(27.2 | ) | (60.3 | ) | ||||
Treasury
stock
|
(16.3 | ) | (0.1 | ) | ||||
Total
stockholders' equity
|
2,024.9
|
1,875.4
|
||||||
Total
liabilities and stockholders' equity
|
$ |
4,775.6
|
$ |
4,584.0
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Net
sales
|
$ |
1,364.3
|
$ |
1,168.7
|
$ |
2,642.1
|
$ |
2,323.9
|
||||||||
Cost
of sales
|
1,116.7
|
937.6
|
2,178.6
|
1,869.5
|
||||||||||||
Gross
profit
|
247.6
|
231.1
|
463.5
|
454.4
|
||||||||||||
Selling,
general and administrative expenses
|
135.2
|
124.3
|
261.9
|
253.8
|
||||||||||||
Other
income
|
(1.2 | ) | (0.7 | ) | (1.9 | ) | (1.2 | ) | ||||||||
Operating
income
|
113.6
|
107.5
|
203.5
|
201.8
|
||||||||||||
Equity
in affiliates' earnings, net of tax
|
(8.8 | ) | (8.5 | ) | (18.0 | ) | (18.5 | ) | ||||||||
Interest
expense and finance charges
|
9.3
|
9.9
|
18.2
|
19.3
|
||||||||||||
Earnings
before income taxes and minority interest
|
113.1
|
106.1
|
203.3
|
201.0
|
||||||||||||
Provision
for income taxes
|
30.5
|
29.7
|
54.9
|
56.3
|
||||||||||||
Minority
interest, net of tax
|
6.9
|
6.2
|
14.3
|
13.2
|
||||||||||||
Net
earnings
|
$ |
75.7
|
$ |
70.2
|
$ |
134.1
|
$ |
131.5
|
||||||||
Earnings
per share - basic
|
$ |
1.30
|
$ |
1.22
|
$ |
2.31
|
$ |
2.30
|
||||||||
Earnings
per share - diluted
|
$ |
1.29
|
$ |
1.21
|
$ |
2.28
|
$ |
2.27
|
||||||||
Weighted
average shares outstanding (thousands):
|
||||||||||||||||
Basic
|
58,050
|
57,328
|
57,983
|
57,254
|
||||||||||||
Diluted
|
58,908
|
57,998
|
58,763
|
57,878
|
||||||||||||
Dividends
declared per share
|
$ |
0.17
|
$ |
0.16
|
$ |
0.34
|
$ |
0.32
|
||||||||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2007
|
2006
|
|||||||
OPERATING
|
||||||||
Net
earnings
|
$ |
134.1
|
$ |
131.5
|
||||
Adjustments
to reconcile net earnings to net cash flows from
operations:
|
||||||||
Non-cash
charges (credits) to operations:
|
||||||||
Depreciation
and tooling amortization
|
117.8
|
117.5
|
||||||
Amortization
of intangible assets and other
|
8.3
|
6.6
|
||||||
Stock
option compensation expense
|
9.1
|
5.9
|
||||||
Deferred
income tax benefit
|
(5.9 | ) | (7.4 | ) | ||||
Equity
in affiliates' earnings, net of dividends received, minority interest
and
other
|
11.8
|
20.4
|
||||||
Net
earnings adjusted for non-cash charges (credits) to
operations
|
275.2
|
274.5
|
||||||
Changes
in assets and liabilities:
|
||||||||
Receivables
|
(90.1 | ) | (58.2 | ) | ||||
Inventories
|
(30.4 | ) | (9.9 | ) | ||||
Prepayments
and other current assets
|
(4.4 | ) | (0.1 | ) | ||||
Accounts
payable and accrued expenses
|
68.9
|
26.1
|
||||||
Income
taxes payable
|
(5.2 | ) | (6.6 | ) | ||||
Other
non-current assets and liabilities
|
9.4
|
7.4
|
||||||
Net
cash provided by operating activities
|
223.4
|
233.2
|
||||||
INVESTING
|
||||||||
Capital
expenditures, including tooling outlays
|
(122.5 | ) | (145.5 | ) | ||||
Net
proceeds from asset disposals
|
2.3
|
2.6
|
||||||
Purchases
of marketable securities
|
(12.6 | ) | (30.8 | ) | ||||
Proceeds
from sales of marketable securities
|
14.7
|
13.4
|
||||||
Net
cash used in investing activities
|
(118.1 | ) | (160.3 | ) | ||||
FINANCING
|
||||||||
Net
decrease in notes payable
|
(65.9 | ) | (74.6 | ) | ||||
Additions
to long-term debt
|
20.7
|
100.0
|
||||||
Repayments
of long-term debt
|
(20.0 | ) | (81.4 | ) | ||||
Payment
for purchase of treasury stock
|
(16.3 | ) |
-
|
|||||
Proceeds
from stock options exercised
|
17.5
|
7.3
|
||||||
Dividends
paid to BorgWarner stockholders
|
(19.7 | ) | (18.3 | ) | ||||
Dividends
paid to minority shareholders
|
(15.5 | ) | (16.2 | ) | ||||
Net
cash used in financing activities
|
(99.2 | ) | (83.2 | ) | ||||
Effect
of exchange rate changes on cash
|
(10.9 | ) | (12.2 | ) | ||||
Net
decrease in cash
|
(4.8 | ) | (22.5 | ) | ||||
Cash
at beginning of year
|
123.3
|
89.7
|
||||||
Cash
at end of period
|
$ |
118.5
|
$ |
67.2
|
||||
SUPPLEMENTAL
CASH FLOW INFORMATION
|
||||||||
Net
cash paid during the period for:
|
||||||||
Interest
|
$ |
21.3
|
$ |
22.0
|
||||
Income
taxes
|
45.1
|
48.1
|
||||||
Non-cash
financing transactions:
|
||||||||
Issuance
of common stock for stock performance plans
|
2.3
|
3.0
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
(millions)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Gross
R&D expenditures
|
$ |
65.0
|
$ |
54.2
|
$ |
125.5
|
$ |
107.8
|
||||||||
Customer
reimbursements
|
(8.3 | ) | (6.4 | ) | (17.9 | ) | (13.9 | ) | ||||||||
Net
R&D expenditures
|
$ |
56.7
|
$ |
47.8
|
$ |
107.6
|
$ |
93.9
|
||||||||
Years
No Longer
|
|
Tax
Jurisdiction
|
Subject
to Audit
|
U.S.
Federal
|
2001
and prior
|
Brazil
|
2002
and prior
|
France
|
2003
and prior
|
Germany
|
2002
and prior
|
Hungary
|
2004
and prior
|
Italy
|
2001
and prior
|
Japan
|
2005
and prior
|
South
Korea
|
2004
and prior
|
United
Kingdom
|
2003
and prior
|
June
30,
|
December
31,
|
|||||||
(millions)
|
2007
|
2006
|
||||||
Raw
material and supplies
|
$ |
217.1
|
$ |
207.4
|
||||
Work
in progress
|
102.6
|
100.0
|
||||||
Finished
goods
|
116.9
|
91.9
|
||||||
FIFO
inventories
|
436.6
|
399.3
|
||||||
LIFO
reserve
|
(12.0 | ) | (12.4 | ) | ||||
Net
inventories
|
$ |
424.6
|
$ |
386.9
|
(millions)
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
||||||||
Land
and buildings
|
$ |
561.2
|
$ |
552.3
|
|||||
Machinery
and equipment
|
1,707.4
|
1,687.8
|
|||||||
Capital
leases
|
1.1
|
1.1
|
|||||||
Construction
in progress
|
119.7
|
112.8
|
|||||||
Total
property, plant & equipment
|
2,389.4
|
2,354.0
|
|||||||
Less
accumulated depreciation
|
(1,009.5 | ) | (988.4 | ) | |||||
1,379.9
|
1,365.6
|
||||||||
Tooling,
net of amortization
|
96.8
|
95.1
|
|||||||
Property,
plant & equipment - net
|
|
$ |
1,476.7
|
$ |
1,460.7
|
Six
months ended
|
||||||||
June
30,
|
||||||||
(millions)
|
2007
|
2006
|
||||||
Beginning
balance
|
$ |
60.0
|
$ |
44.0
|
||||
Provision
|
37.2
|
10.7
|
||||||
Payments
|
(22.5 | ) | (10.7 | ) | ||||
Currency
translation
|
1.5
|
3.2
|
||||||
Ending
balance
|
$ |
76.2
|
$ |
47.2
|
(millions)
|
June
30, 2007
|
December
31, 2006
|
||||||||||||||
Current
|
Long-Term
|
Current
|
Long-Term
|
|||||||||||||
Bank
borrowings and other
|
$ |
44.6
|
$ |
5.4
|
$ |
131.8
|
$ |
5.9
|
||||||||
Term
loans due through 2013 (at an average rate of
|
||||||||||||||||
3.3%
in 2007 and 3.0% in 2006)
|
43.2
|
23.9
|
19.9
|
23.1
|
||||||||||||
5.75%
Senior Notes due 11/01/16,
net of unamortized discount (a)
|
-
|
149.1
|
-
|
149.0
|
||||||||||||
6.50%
Senior Notes due 02/15/09,
net of unamortized discount (a)
|
-
|
136.4
|
-
|
136.4
|
||||||||||||
8.00%
Senior Notes due 10/01/19,
net of unamortized discount (a)
|
-
|
133.9
|
-
|
133.9
|
||||||||||||
7.125%
Senior Notes due 02/15/29, net of unamortized discount
|
-
|
119.2
|
-
|
119.2
|
||||||||||||
Carrying
amount of notes payable and long-term debt
|
87.8
|
567.9
|
151.7
|
567.5
|
||||||||||||
Impact
of derivatives on debt
|
-
|
(10.3 | ) |
-
|
1.9
|
|||||||||||
Total
notes payable and long-term debt
|
$ |
87.8
|
$ |
557.6
|
$ |
151.7
|
$ |
569.4
|
||||||||
(a) The
Company entered into several interest rate swaps, which have the
effect of
converting $325.0 million of these fixed rate notes to variable
rates as
of June 30, 2007 and December 31, 2006. The weighted average
effective interest rates for these borrowings, including the effects
of
outstanding swaps as noted in Note 10, were 4.8% and 4.5% as of
June 30,
2007 and December 31, 2006, respectively.
|
Notional
|
||||
Hedge
Type
|
Amount
|
Maturity
(a)
|
||
Interest
rate swaps
|
||||
Fixed
to floating
|
Fair
value
|
$100
|
February
15, 2009
|
|
Fixed
to floating
|
Fair
value
|
$150
|
November
1, 2016
|
|
Fixed
to floating
|
Fair
value
|
$75
|
October
1, 2019
|
|
Cross
currency swap
|
||||
Floating
$ to floating €
|
Net
Investment
|
$100
|
February
15, 2009
|
|
Floating
$ to floating ¥
|
Net
Investment
|
$150
|
November
1, 2016
|
|
Floating
$ to floating €
|
Net
Investment
|
$75
|
October
1, 2019
|
|
(a) The
maturity of the swaps corresponds with the maturity of the hedged
item as
noted in the debt summary, unless otherwise indicated.
|
||||
Other
post
|
||||||||||||||||||||||||
(millions)
|
Pension
benefits
|
employment
|
||||||||||||||||||||||
Three
months ended June 30,
|
2007
|
2006
|
benefits
|
|||||||||||||||||||||
US
|
Non-US
|
US
|
Non-US
|
2007
|
2006
|
|||||||||||||||||||
Components
of net periodic benefit cost:
|
||||||||||||||||||||||||
Service
cost
|
$ |
0.5
|
$ |
2.3
|
$ |
0.5
|
$ |
3.1
|
$ |
1.7
|
$ |
2.2
|
||||||||||||
Interest
cost
|
4.3
|
3.9
|
4.2
|
3.3
|
7.4
|
7.0
|
||||||||||||||||||
Expected
return on plan assets
|
(7.4 | ) | (3.1 | ) | (7.0 | ) | (2.5 | ) |
-
|
-
|
||||||||||||||
Amortization
of unrecognized
|
||||||||||||||||||||||||
transition
obligation
|
-
|
-
|
-
|
(0.1 | ) |
-
|
-
|
|||||||||||||||||
Amortization
of unrecognized
|
||||||||||||||||||||||||
prior
service cost (benefit)
|
-
|
-
|
0.2
|
-
|
(3.9 | ) | (6.3 | ) | ||||||||||||||||
Amortization
of unrecognized loss
|
0.5
|
0.3
|
1.6
|
0.7
|
3.8
|
5.3
|
||||||||||||||||||
Other
|
-
|
0.3
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Net
periodic benefit cost (benefit)
|
$ | (2.1 | ) | $ |
3.7
|
$ | (0.5 | ) | $ |
4.5
|
$ |
9.0
|
$ |
8.2
|
||||||||||
Other
post
|
||||||||||||||||||||||||
(millions)
|
Pension
benefits
|
employment
|
||||||||||||||||||||||
Six
months ended June 30,
|
2007
|
2006
|
benefits
|
|||||||||||||||||||||
US
|
Non-US
|
US
|
Non-US
|
2007
|
2006
|
|||||||||||||||||||
Components
of net periodic benefit cost:
|
||||||||||||||||||||||||
Service
cost
|
$ |
1.0
|
$ |
5.3
|
$ |
1.2
|
$ |
6.3
|
$ |
3.3
|
$ |
5.4
|
||||||||||||
Interest
cost
|
8.7
|
7.9
|
8.4
|
6.8
|
14.9
|
15.9
|
||||||||||||||||||
Expected
return on plan assets
|
(14.8 | ) | (6.2 | ) | (14.2 | ) | (5.3 | ) |
-
|
-
|
||||||||||||||
Amortization
of unrecognized
|
||||||||||||||||||||||||
prior
service cost (benefit)
|
-
|
0.4
|
-
|
(7.9 | ) | (7.3 | ) | |||||||||||||||||
Amortization
of unrecognized loss
|
1.0
|
0.7
|
3.2
|
1.3
|
7.6
|
11.1
|
||||||||||||||||||
Other
|
-
|
0.3
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Net
periodic benefit cost (benefit)
|
$ | (4.1 | ) | $ |
8.0
|
$ | (1.0 | ) | $ |
9.1
|
$ |
17.9
|
$ |
25.1
|
Weighted
|
||||||||||||||||
Weighted
|
Average
|
Aggregate
|
||||||||||||||
Average
|
Remaining
|
Intrinsic
|
||||||||||||||
Shares
|
exercise
|
Contractual
|
Value
|
|||||||||||||
(thousands)
|
Price
|
Life
(in years)
|
(in
millions)
|
|||||||||||||
Outstanding
at December 31, 2006
|
3,471
|
$ |
47.48
|
|||||||||||||
Granted
|
908
|
69.89
|
||||||||||||||
Exercised
|
(295 | ) |
35.12
|
|||||||||||||
Forfeited
|
(169 | ) |
41.04
|
|||||||||||||
Outstanding
at March 31, 2007
|
3,915
|
$ |
53.88
|
8.2
|
$ |
84.3
|
||||||||||
Granted
|
-
|
-
|
||||||||||||||
Exercised
|
(107 | ) |
32.43
|
|||||||||||||
Forfeited
|
(35 | ) |
53.86
|
|||||||||||||
Outstanding
at June 30, 2007
|
3,773
|
$ |
54.49
|
8.1
|
$ |
119.0
|
||||||||||
Options
exerciseable at June 30, 2007
|
725
|
$ |
32.82
|
5.6
|
$ |
38.6
|
||||||||||
2007 | |
Risk-free interest rate
|
4.82% |
Dividend yield
|
0.97% |
Volatility factor
|
28.64% |
Expected life
|
4.7 years |
Three
months ended
|
Six
months ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
(millions)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Foreign
currency translation adjustments, net
|
$ |
20.3
|
$ |
43.7
|
$ |
39.3
|
$ |
73.7
|
||||||||
Market
value change in hedge instruments, net
|
(3.9 | ) | (2.1 | ) | (2.7 | ) | (3.0 | ) | ||||||||
Minimum
pension liability adjustment, net
|
(3.5 | ) |
-
|
(3.5 | ) |
-
|
||||||||||
Unrealized
(loss) gain on available-for-sale securities, net
|
0.2 | (0.5 | ) | - | (0.3 | ) | ||||||||||
Change
in accumulated other comprehensive loss
|
13.1
|
41.1
|
33.1
|
70.4
|
||||||||||||
Net
earnings as reported
|
75.7
|
70.2
|
134.1
|
131.5
|
||||||||||||
Total
comprehensive income
|
$ |
88.8
|
$ |
111.3
|
$ |
167.2
|
$ |
201.9
|
||||||||
June
30,
|
December
31,
|
|||||||
(millions)
|
2007
|
2006
|
||||||
Assets:
|
||||||||
Prepayments
and other current assets
|
$ |
21.8
|
$ |
23.3
|
||||
Other
non-current assets
|
19.7
|
16.6
|
||||||
Total
insurance receivable
|
$ |
41.5
|
$ |
39.9
|
||||
Liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
$ |
21.8
|
$ |
23.3
|
||||
Other
non-current liabilities
|
19.7
|
16.6
|
||||||
Total
accrued liability
|
$ |
41.5
|
$ |
39.9
|
Employee
|
||||
Related
Costs
|
||||
Balance
at December 31, 2006
|
$ |
16.2
|
||
Cash
payments
|
(6.1 | ) | ||
Balance
at March 31, 2007
|
10.1
|
|||
Cash
payments
|
(0.9 | ) | ||
Balance
at June 30, 2007
|
$ |
9.2
|
Net
Sales by Operating Segment
|
||||||||||||||||
(millions)
|
||||||||||||||||
Three
months ended
|
Six
months ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Engine
|
$ |
955.4
|
$ |
792.0
|
$ |
1,849.5
|
$ |
1,577.9
|
||||||||
Drivetrain
|
417.7
|
386.3
|
809.7
|
763.3
|
||||||||||||
Inter-segment
eliminations
|
(8.8 | ) | (9.6 | ) | (17.1 | ) | (17.3 | ) | ||||||||
Net
sales
|
$ |
1,364.3
|
$ |
1,168.7
|
$ |
2,642.1
|
$ |
2,323.9
|
||||||||
Segment
Earnings Before Interest and Income Taxes
|
||||||||||||||||
(millions)
|
||||||||||||||||
Three
months ended
|
Six
months ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Engine
|
$ |
108.3
|
$ |
95.4
|
$ |
193.6
|
$ |
191.7
|
||||||||
Drivetrain
|
33.3
|
28.6
|
61.0
|
51.3
|
||||||||||||
Segment
earnings before interest and income taxes ("Segment EBIT")
|
141.6
|
124.0
|
254.6
|
243.0
|
||||||||||||
Corporate,
including equity in affiliates' earnings and
|
||||||||||||||||
stock-based
compensation
|
19.2 | 8.0 | 33.1 | 22.7 | ||||||||||||
Consolidated
earnings before interest and taxes ("EBIT")
|
122.4
|
116.0
|
221.5
|
220.3
|
||||||||||||
Interest
expense and finance charges
|
9.3
|
9.9
|
18.2
|
19.3
|
||||||||||||
Earnings
before income taxes and minority interest
|
113.1
|
106.1
|
203.3
|
201.0
|
||||||||||||
Provision
for income taxes
|
30.5
|
29.7
|
54.9
|
56.3
|
||||||||||||
Minority
interest, net of tax
|
6.9
|
6.2
|
14.3
|
13.2
|
||||||||||||
Net
earnings
|
$ |
75.7
|
$ |
70.2
|
$ |
134.1
|
$ |
131.5
|
||||||||
Total
Assets
|
||||||||||||||||
(millions)
|
||||||||||||||||
June
30,
|
December
31,
|
|||||||||||||||
2007
|
2006
|
|||||||||||||||
Engine
|
$ |
3,317.8
|
$ |
3,103.1
|
||||||||||||
Drivetrain
|
1,246.3
|
1,191.0
|
||||||||||||||
Total
|
4,564.1
|
4,294.1
|
||||||||||||||
Corporate,
including equity in affiliates (a)
|
211.5
|
289.9
|
||||||||||||||
Total
assets
|
$ |
4,775.6
|
$ |
4,584.0
|
||||||||||||
(a)
Corporate
assets, including equity in affiliates, are net of trade receivables
securitized and sold to third parties, and include cash, deferred
income
|
||||||||||||||||
taxes
and investments & advances.
|
Net
Sales by Operating Segment
|
||||||||||||||||
(millions)
|
||||||||||||||||
Three
months ended
|
Six
months ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Engine
|
$ |
955.4
|
$ |
792.0
|
$ |
1,849.5
|
$ |
1,577.9
|
||||||||
Drivetrain
|
417.7
|
386.3
|
809.7
|
763.3
|
||||||||||||
Inter-segment
eliminations
|
(8.8 | ) | (9.6 | ) | (17.1 | ) | (17.3 | ) | ||||||||
Net
sales
|
$ |
1,364.3
|
$ |
1,168.7
|
$ |
2,642.1
|
$ |
2,323.9
|
||||||||
Segment
Earnings Before Interest and Income Taxes
|
||||||||||||||||
(millions)
|
||||||||||||||||
Three
months ended
|
Six
months ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Engine
|
$ |
108.3
|
$ |
95.4
|
$ |
193.6
|
$ |
191.7
|
||||||||
Drivetrain
|
33.3
|
28.6
|
61.0
|
51.3
|
||||||||||||
Segment
earnings before interest and income taxes ("Segment EBIT")
|
141.6
|
124.0
|
254.6
|
243.0
|
||||||||||||
Corporate,
including equity in affiliates' earnings and
|
||||||||||||||||
stock-based
compensation
|
19.2 | 8.0 | 33.1 | 22.7 | ||||||||||||
Consolidated
earnings before interest and taxes ("EBIT")
|
122.4
|
116.0
|
221.5
|
220.3
|
||||||||||||
Interest
expense and finance charges
|
9.3
|
9.9
|
18.2
|
19.3
|
||||||||||||
Earnings
before income taxes and minority interest
|
113.1
|
106.1
|
203.3
|
201.0
|
||||||||||||
Provision
for income taxes
|
30.5
|
29.7
|
54.9
|
56.3
|
||||||||||||
Minority
interest, net of tax
|
6.9
|
6.2
|
14.3
|
13.2
|
||||||||||||
Net
earnings
|
$ |
75.7
|
$ |
70.2
|
$ |
134.1
|
$ |
131.5
|
||||||||
June
30,
|
December
31,
|
|||||||
(millions)
|
2007
|
2006
|
||||||
Assets:
|
||||||||
Prepayments
and other current assets
|
$ |
21.8
|
$ |
23.3
|
||||
Other
non-current assets
|
19.7
|
16.6
|
||||||
Total
insurance receivable
|
$ |
41.5
|
$ |
39.9
|
||||
Liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
$ |
21.8
|
$ |
23.3
|
||||
Other
non-current liabilities
|
19.7
|
16.6
|
||||||
Total
accrued liability
|
$ |
41.5
|
$ |
39.9
|