WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION WILMERDING, Pa., July 24, 2014 /PRNewswire/ -- Wabtec Corporation (NYSE: WAB) today reported record results for the 2014 second quarter, including the following:
-- Second quarter sales were a record $731 million, 15 percent higher than
the year-ago quarter, due to strong growth in both the Freight and
Transit segments.
-- Income from operations was a record $132 million, or 18.1 percent of
sales, compared to 17.6 percent in the year-ago quarter.
-- Earnings per diluted share were a record 91 cents, which was 18 percent
higher than the year-ago quarter.
-- Cash flow from operations in the quarter was $111 million, or 15 percent
of sales. At June 30, 2014, the company had cash of $226 million and
debt of $501 million. During the quarter, the company repurchased
194,700 shares of company stock for $14 million.
Based on Wabtec's first half results and outlook for the rest of the year, the company increased its 2014 guidance for earnings per diluted share to about $3.52, with revenues expected to be up about
15 percent for the year.
Albert J. Neupaver, Wabtec's executive chairman, said: "The company had a strong operating quarter, with record sales, earnings and margins, as we continued to execute our growth strategies and internal improvement initiatives. We are optimistic about our future growth prospects, given the diversity of our business model, strong global investment in transportation and infrastructure projects, and the power of our Wabtec Performance System to drive efficiency and cost reductions."
Raymond T. Betler, Wabtec's president and chief executive officer, said: "During the quarter we also completed the acquisition of Fandstan Electric Group, a leading manufacturer of pantographs and other products for rail and tram transportation, and industrial and energy markets. Fandstan Electric fits all of our strategic growth initiatives, and our integration efforts are already 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.
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 SIX MONTHS ENDED JUNE 30, 2014 AND 2013
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
Second Second For the For the
Quarter Quarter Six Months Six Months
2014 2013 2014 2013
---- ---- ---- ----
Net sales $731,068 $638,002 $1,426,317 $1,253,512
Cost of sales (506,410) (445,121) (992,090) (877,743)
-------- -------- -------- --------
Gross profit 224,658 192,881 434,227 375,769
Gross profit as a % of Net Sales 30.7% 30.2% 30.4% 30.0%
Selling, general and administrative expenses (72,982) (63,874) (143,063) (128,174)
Engineering expenses (14,221) (11,280) (27,167) (22,614)
Amortization expense (5,132) (5,173) (9,828) (8,760)
------ ------ ------ ------
Total operating expenses (92,335) (80,327) (180,058) (159,548)
Operating expenses as a % of Net Sales 12.6% 12.6% 12.6% 12.7%
Income from operations 132,323 112,554 254,169 216,221
Income from operations as a % of Net Sales 18.1% 17.6% 17.8% 17.2%
Interest (expense) income, net (4,525) (3,271) (8,975) (6,885)
Other income (expense), net 243 406 226 (175)
--- --- --- ----
Income from operations before income taxes 128,041 109,689 245,420 209,161
Income tax expense (39,336) (35,051) (76,581) (64,910)
------- ------- ------- -------
Effective tax rate 30.7% 32.0% 31.2% 31.0%
Net income attributable to Wabtec shareholders $88,705 $74,638 $168,839 $144,251
======= ======= ======== ========
Earnings Per Common Share
Basic
Net income attributable to Wabtec shareholders $0.92 $0.78 $1.76 $1.51
Diluted
Net income attributable to Wabtec shareholders $0.91 $0.77 $1.74 $1.49
Weighted average shares outstanding
Basic 96,048 95,762 95,674 95,243
====== ====== ====== ======
Diluted 97,058 97,102 96,827 96,606
====== ====== ====== ======
Sales by Segment
Freight Group $411,502 $354,857 $797,008 $668,536
Transit Group 319,566 283,145 $629,309 $584,976
------- ------- -------- --------
Total $731,068 $638,002 $1,426,317 $1,253,512
======== ======== ========== ==========
SOURCE Wabtec Corporation
