Here's Why BorgWarner Stock Crashed in August
Shares of automotive technology company BorgWarner (NYSE: BWA) slumped 13.7% in August, according to data provided by S&P Global Market Intelligence. The move marked a combination of ongoing negative sentiment regarding the outlook for global light-vehicle production and the knock-on effects from a weak second-quarter earnings report from BorgWarner.
Not only did the report reveal disappointing margin performance -- the company failed to cut costs as much as expected, and the pace of the market decline caught the company short in the quarter -- but management told investors to brace themselves for a difficult third quarter and cut its full-year sales and earnings guidance on the back of a more negative outlook for global light-vehicle production.
Image source: Getty Images.
Source Fool.com
