Wabtec Reports 3Q EPS Of 57 Cents, Cash From Operations of $51 Million And Updates Guidance
October 29 2009 - 7:58AM
PR Newswire (US)
WILMERDING, Pa., Oct. 29 /PRNewswire-FirstCall/ -- Wabtec
Corporation (NYSE:WAB) today reported its 2009 third quarter
results, including the following: -- Earnings per diluted share
were 57 cents. -- Income from operations was $46 million, or 13.8
percent of sales compared to 13.2 percent of sales in the year-ago
quarter. The increase in operating margin was due to cost reduction
initiatives and other benefits from the Wabtec Performance System.
-- Sales decreased to $330 million, due mainly to lower sales in
the Freight Group, which has been affected negatively by sharply
lower rail traffic levels. -- Cash generated from operations was
$51 million, or 15 percent of sales. At Sept. 30, 2009, Wabtec had
cash of $255 million and debt of $432 million. Following the end of
the quarter, the company acquired Unifin International for $93
million, which reduced cash on hand by that amount. Based on its
third quarter results and outlook for the rest of the year, Wabtec
updated its 2009 guidance as follows: Revenues are now expected to
be about 12 percent lower than 2008, with earnings per diluted
share expected to be between $2.40-$2.50. Previously, the company
expected revenues to be down about 10 percent, with EPS expected to
be between $2.35-$2.55. Albert J. Neupaver, Wabtec's president and
chief executive officer, said: "Market conditions continued to be
very difficult in the third quarter for our freight rail business,
while the Transit Group remained stable. Even in this environment,
we still improved margins and generated strong cash flow. We will
continue to manage what we can in the short term, while remaining
focused on our long-term strategies and growth opportunities, such
as the acquisition of Unifin International. With annual sales of
about $45 million, Unifin is a leading manufacturer of cooling
systems and related equipment for the power generation and
transmission industry. We expect it to be a strategic complement to
our Young Touchstone unit, which is well established in the
industrial cooling systems market." Wabtec Corporation
(http://www.wabtec.com/) is a global provider of value-added,
technology-based products and services mainly for the freight rail
and passenger transit industry. 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; 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 via webcast, go to
http://www.wabtec.com/ and click on "Webcasts" in the "Investor
Relations" section. WABTEC CORPORATION CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2009 AND 2008 (DOLLARS IN THOUSANDS EXCEPT PER SHARE
DATA) (UNAUDITED) Third Third For the For the Quarter Quarter Nine
Months Nine Months 2009 2008 2009 2008 ---- ---- ---- ---- Net
sales $330,455 $396,017 $1,042,428 $1,169,538 Cost of sales
(235,629) (288,343) (749,484) (848,148) -------- -------- --------
-------- Gross profit 94,826 107,674 292,944 321,390 Gross profit
as a % of Net Sales 28.7% 27.2% 28.1% 27.5% Selling, general and
administrative expenses (37,395) (43,841) (118,528) (126,322)
Engineering expenses (10,157) (9,713) (31,481) (29,325)
Amortization expense (1,515) (1,666) (4,701) (3,481) ------ ------
------ ------ Total operating expenses (49,067) (55,220) (154,710)
(159,128) Operating expenses as a % of Net Sales 14.8% 13.9% 14.8%
13.6% Income from operations 45,759 52,454 138,234 162,262 Income
from operations as a % of Net Sales 13.8% 13.2% 13.3% 13.9%
Interest (expense) income, net (3,687) (1,943) (12,148) (4,717)
Other (expense) income, net 394 (100) 649 (1,179) --- ---- ---
------ Income from continuing operations before income taxes 42,466
50,411 126,735 156,366 Income tax expense (15,118) (17,241)
(35,885) (56,921) ------- ------- ------- ------- Effective tax
rate 35.6% 34.2% 28.3% 36.4% Income from continuing operations
27,348 33,170 90,850 99,445 Discontinued operations Income (loss)
from discontinued operations (net of tax) - - - (3) - - - -- Net
income $27,348 $33,170 $90,850 $99,442 ======= ======= =======
======= Earnings Per Common Share Basic Income from continuing
operations $0.58 $0.68 $1.90 $2.05 Income from discontinued
operations - - - - Net income $0.58 $0.68 $1.90 $2.05 Diluted
Income from continuing operations $0.57 $0.68 $1.89 $2.03 Income
from discontinued operations - - - - Net income $0.57 $0.68 $1.89
$2.03 Weighted average shares outstanding Basic 47,289 48,161
47,537 48,269 ====== ====== ====== ====== Diluted 47,752 48,827
48,019 48,918 ====== ====== ====== ====== Sales by Segment Freight
Group $124,453 $183,276 $440,479 $574,673 Transit Group 206,002
212,741 601,949 594,865 ------- ------- ------- ------- Total
$330,455 $396,017 $1,042,428 $1,169,538 ======== ========
========== ========== DATASOURCE: Wabtec Corporation CONTACT: Tim
Wesley of Wabtec Corporation, +1-412-825-1543, Web Site:
http://www.wabtec.com/
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