Wabtec Reports 3Q EPS of $1.02, Up 10 Percent, and Cash Flow From Operations of $144 Million; Affirms Full-Year Earnings Guidance

WILMERDING, Pa., Oct. 22, 2015 (GLOBE NEWSWIRE) — Wabtec Corporation (NYSE:WAB) today reported results for the 2015 third quarter, including the following:

  • Third quarter sales were $810 million, 2 percent higher than the year-ago quarter, due to growth in the Freight Group.  Changes in foreign exchange rates reduced sales by about $39 million compared to the year-ago quarter.
  • Income from operations was $152 million, or a record 18.8 percent of sales, compared to
    17.1 percent in the year-ago quarter.
  • Earnings per diluted share were $1.02, 10 percent higher than the year-ago quarter.  Changes in foreign exchange rates reduced earnings per diluted share by about 5 cents compared to the year-ago quarter, and the company also had expenses of about 2 cents per diluted share related to the planned acquisition of Faiveley Transport.
  • Cash flow from operations was $144 million.  At Sept. 30, 2015, Wabtec had cash of $208 million and debt of $451 million.  During the quarter, the company repurchased 237,027 shares for $22 million, and it has about $151 million remaining under the current repurchase authorization.

Based on Wabtec’s year-to-date results and outlook for the rest of the year, the company affirmed its 2015 earnings guidance for earnings per diluted share of about $4.10, with revenue growth expected to be about 9 percent for the year.

Raymond T. Betler, Wabtec’s president and chief executive officer, said:  “Driven by the performance of our Freight Group, we had another solid operating quarter.  We expect to finish the year with a good fourth quarter, even though global economic conditions remain sluggish, due mainly to the effects of lower commodities prices.  In this environment, we continue to execute our growth strategies and internal cost improvement initiatives through the Wabtec Performance System.  As previously announced, we are also making progress toward completing the acquisition of Faiveley Transport, which we believe will strengthen our position in the global transit business and enhance our future growth opportunities.”

Wabtec Corporation (www.wabtec.com) is a global provider of value-added, technology-based products and services for rail and other industrial markets.

This release contains forward-looking statements, such as statements regarding the company’s expectations about future earnings.  Actual results could differ materially from the results suggested in any forward-looking statement.  Factors that could cause or contribute to these material differences include, but are not limited to, an economic slowdown in the markets we serve; changes in foreign currency exchange rates; a decrease in freight or passenger rail traffic; an increase in manufacturing costs; and other factors contained in the company’s filings with the Securities and Exchange Commission.  The company assumes no obligation to update these statements or advise of changes in the assumptions on which they are based.

Wabtec will host a call with analysts and investors at 10 a.m., eastern time, today.  To listen, go to www.wabtec.com and click on the “Webcasts” tab in the “Investor Relations” section.



WABTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
           
           
  Third Third   For the For the
  Quarter Quarter   Nine Months Nine Months
    2015     2014       2015     2014  
           
Net sales $ 809,527   $ 797,271     $ 2,475,149   $ 2,223,588  
Cost of sales   (552,458 )   (549,813 )     (1,694,961 )   (1,541,903 )
Gross profit   257,069     247,458       780,188     681,685  
 Gross profit as a % of Net Sales   31.8 %   31.0 %     31.5 %   30.7 %
           
Selling, general and administrative expenses   (82,206 )   (88,359 )     (255,969 )   (231,422 )
Engineering expenses   (17,239 )   (16,391 )     (51,852 )   (43,558 )
Amortization expense   (5,546 )   (6,731 )     (16,009 )   (16,559 )
Total operating expenses   (104,991 )   (111,481 )     (323,830 )   (291,539 )
 Operating expenses as a % of Net Sales   13.0 %   14.0 %     13.1 %   13.1 %
           
Income from operations   152,078     135,977       456,358     390,146  
 Income from operations as a % of Net Sales   18.8 %   17.1 %     18.4 %   17.5 %
           
Interest expense, net   (4,351 )   (4,594 )     (12,698 )   (13,569 )
Other (expense) income, net   (2,937 )   (154 )     (7,690 )   72  
Income from operations before income taxes   144,790     131,229       435,970     376,649  
           
Income tax expense   (45,609 )   (41,074 )     (139,121 )   (117,655 )
Effective tax rate   31.5 %   31.3 %     31.9 %   31.2 %
                           
Net income attributable to Wabtec shareholders $ 99,181   $ 90,155     $ 296,849   $ 258,994  
           
Earnings Per Common Share          
Basic          
Net income attributable to Wabtec shareholders $ 1.03   $ 0.94     $ 3.08   $ 2.69  
           
Diluted          
Net income attributable to Wabtec shareholders $ 1.02   $ 0.93     $ 3.05   $ 2.67  
           
Weighted average shares outstanding          
Basic   96,369     95,935       96,135     95,745  
Diluted   97,368     97,004       97,162     96,834  
                           
Sales by Segment          
Freight Group $ 507,173   $ 453,329     $ 1,553,734   $ 1,250,337  
Transit Group   302,354     343,942       921,415     973,251  
Total $ 809,527   $ 797,271     $ 2,475,149   $ 2,223,588  
                           

 

CONTACT: Tim Wesley 
Phone: 412.825.1543
E-mail: twesley@wabtec.com	
Website: www.wabtec.com