WABCO, a leading global provider of electronic braking, stability,
suspension and transmission control systems for commercial vehicles,
will make its debut on the New York Stock Exchange today, trading under
the symbol WBC.
WABCO, with revenues of approximately $2 billion in 2006, previously
operated as the Vehicle Control Systems business of American Standard
Companies. On February 1, 2007, American Standard announced plans to
spin off the business, and completed the separation yesterday, exactly
six months later. WABCO was originally part of the Westinghouse Air
Brake Company founded in 1869 and was acquired by American Standard in
1968.
"WABCO's progress has been fueled by consistent strategies, innovative
products and a relentless focus on customers," said Jacques Esculier,
former president of the Vehicle Control Systems business and now CEO of
WABCO Holdings Inc. "I am proud that our evolution to date has
positioned us for this new status as a public company. We are
well-equipped to continue to strengthen our business by further
improving the way we serve our clients, and focusing on expanding
opportunities in the global commercial vehicle industry."
Fred Poses, chairman and CEO of American Standard Companies, said, "WABCO
now has the size, global reach and organizational talent to succeed on
its own and is well-positioned to build on its industry leadership."
Since its invention of anti-lock braking systems (ABS) for commercial
vehicles in cooperation with DaimlerChrysler in 1981, WABCO has
successfully grown its revenues with advanced technologies focused on
improving the performance, safety and efficiency of commercial vehicles.
These include the first electronically controlled air suspension (ECAS)
system, first commercial vehicle automated manual transmission controls
system, first electronic stability control (ESC) system and the first
integrated vehicle tire pressure monitoring (IVTM) system developed in
partnership with Michelin.
In addition to focusing on continued growth in Western Europe and North
America, the company is pursuing growth strategies in emerging markets
such as China, India and Eastern Europe, as well as expanding its
commercial vehicle aftermarket participation. These growth drivers have
helped WABCO generate a compound annual growth rate (CAGR) in revenue of
8 percent over the last five years (excluding foreign exchange impact).
With 12 manufacturing facilities in nine countries, WABCO iscontinually
improving its operations environment through its WABCO Operating System
(WOS). This includes implementing the "Lean" philosophy across the
supply chain, adherence to Design for Six Sigma (DFSS) tools in product
development, customer partnership initiatives and advanced management
systems to ensure accountability across the organization.
"We are continually improving our performance and aligning our global
operations to best serve our strong balance of customers in different
markets and regions worldwide," said Esculier. "We will continue to
deliver the innovative products and outstanding service that our
commercial vehicle customers expect and look forward to bringing the
WABCO brand of advanced technology and service to new markets."
The company also announced today that its board of directors declared a
quarterly dividend of 7 cents per share of common stock and authorized
the company to undertake a $500 million repurchase program of the
company's common stock through 2009. The dividend is payable on
September 20, 2007, to shareholders of record on September 4, 2007.
The company plans to purchase shares at prevailing market prices either
in the open market or through privately negotiated transactions. Timing
will vary depending on market conditions and other factors.
Lazard served as financial advisor for the WABCO spinoff. Skadden Arps
and Baker & McKenzie served as legal counsel.
About WABCO
WABCO is one of the world's leading
providers of electronic braking, stability, suspension and transmission
control systems for heavy duty commercial vehicles. WABCO products are
also increasingly used in luxury cars and sport utility vehicles (SUVs).
Customers include the world's leading commercial truck, trailer, bus and
passenger car manufacturers. Founded in the U.S. in 1869 as Westinghouse
Air Brake Company, WABCO was acquired by American Standard in 1968 and
spun off in 2007. Headquartered in Brussels, Belgium, with executive
offices in Piscataway, N.J., WABCO employs more than 7,000 people in 34
offices and production facilities worldwide. In North America, WABCO
markets ABS and other vehicle control products through its 50-
percent-owned joint venture with Arvin Meritor Automotive Inc. (Meritor
WABCO). Also in North America, WABCO partners with Cummins Inc. in a 70-
percent-owned joint venture (WABCO Compressor Manufacturing Co.) focused
on production of WABCO-designed compressors. In 2006, WABCO's total
sales were $2 billion. WABCO is a publicly traded company and is listed
on the New York Stock Exchange under the stock symbol WBC. Web site:
http://www.wabco-auto.com.
Source: WABCO Press Release