WILMERDING, PA, Oct. 28, 2014 - Wabtec Corporation (NYSE: WAB) today reported record results for the 2014 third quarter, including the following:
Third quarter sales were a record $797 million, 26 percent higher than the year-ago quarter, with about half of the growth due to acquisitions. Income from operations was a record
$136 million, or 17.1 percent of sales. Earnings per diluted share were a record 93 cents, which was 22 percent higher than the year-ago quarter.
Cash flow from operations in the quarter was $93 million, or 12 percent of sales, exceeding net income of $90 million. At Sept. 30, 2014, the company had cash of $213 million and debt of $522 million. During the quarter, the company repurchased 124,600 shares of company stock for $10 million.
Total, multi-year backlog increased to a record $2.18 billion, mainly due to new contracts for locomotive overhauls, freight car components and signaling projects; and acquisitions.
Based on Wabtec's year-to-date results and outlook for the rest of the year, the company increased its 2014 guidance for earnings per diluted share to $3.58-$3.62, with revenues expected to be up about
18 percent for the year.
Albert J. Neupaver, Wabtec's executive chairman, said: "The company continued to perform well in the quarter and we are optimistic about our future opportunities as we execute our growth strategies and internal improvement initiatives. As always, we expect to benefit from our diverse business model, the power of our Wabtec Performance System, and global investment in transportation and infrastructure."
Raymond T. Betler, Wabtec's president and chief executive officer, said: "During the quarter we acquired Dia-Frag, a friction products manufacturer, and C2CE, which provides signal design and engineering services. The companies fit our growth criteria and integration efforts are well underway."
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; 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.
Tim Wesley | Phone: 412.825.1543 | Wabtec Corporation |
E-mail: twesley@wabtec.com Website: www.wabtec.com | 1001 Air Brake Avenue Wilmerding, PA 15148 |
Third | Third | For the | For the |
Quarter | Quarter | Nine Months | Nine Months |
2014 | 2013 | 2014 | 2013 |
Net sales
$ 797,271 $
631,398
$ 2,223,588
$ 1,884,910
Cost of sales (549,813) (443,265) (1,541,903) (1,321,008) Gross profit 247,458 188,133 681,685 563,902
Gross profit as a % of Net Sales 31.0% 29.8% 30.7% 29.9%
Selling, general and administrative expenses | (88,359) | (63,402) | (231,422) | (191,576) |
Engineering expense | (16,391) | (10,921) | (43,558) | (33,535) |
Amortization expense | (6,731) | (3,939) | (16,559) | (12,699) |
Total operating expenses | (111,481) | (78,262) | (291,539) | (237,810) |
Operating expenses as a % of Net Sales | 14.0% | 12.4% | 13.1% | 12.6% |
Income from operations | 135,977 | 109,871 | 390,146 | 326,092 |
Income from operations as a % of Net Sales | 17.1% | 17.4% | 17.5% | 17.3% |
Interest (expense) income, ne | (4,594) | (3,829) | (13,569) | (10,714) |
Other income (expense), net | (154) | (1,658) | 72 | (1,833) |
Income from operations before income taxes | 131,229 | 104,384 | 376,649 | 313,545 |
Income tax expense | (41,074) | (30,441) | (117,655) | (95,351) |
Effective tax rate | 31.3% | 29.2% | 31.2% | 30.4% |
Net income attributable to Wabtec shareholders
Earnings Per Common Share BasicNet income attributable to Wabtec shareholders
DilutedNet income attributable to Wabtec shareholders
Weighted average shares outstanding
Basic 95,935 95,848 95,745 95,383
Diluted 97,004 97,174 96,834 96,754
Freight Group
Transit Group
Total
distributed by |