WABCO Holdings Inc.
today reported record quarterly sales in the fourth-quarter of $679
million, up 31% from the fourth-quarter of 2006. Excluding favorable
foreign exchange effects, sales for the quarter were up 17% versus prior
year. The increase demonstrates the Company's continued ability to
outperform the global commercial vehicle market.
The Company reported
fourth-quarter net income of $54.4 million on a U.S. GAAP basis, or 79
cents per diluted share, versus $24.6 million in the fourth- quarter of
2006, or 35 cents per diluted share. On a performance basis, which
excludes separation costs, operational streamlining expenses and
one-time and discrete tax items, net income increased 97% to $69.6
million, or $1.02 per diluted share, compared with $35.4 or 51 cents per
diluted share a year ago. Separation costs, operational streamlining
expenses, and one-time and discrete tax items amounted to $15.2 million
net of tax for the quarter.
"This was an
outstanding finish to a very important year for WABCO during which we
transitioned to an independent company," said Jacques Esculier, WABCO
Chief Executive Officer. "We are excited about our strong sales
performance for the quarter as it demonstrates our ability to continue
to outperform the market for commercial vehicles in all regions of the
world. Our earnings performance also clearly indicates our progress in
addressing and resolving many of the operational inefficiencies we faced
in the previous quarter driven by capacity constraints throughout the
commercial vehicle supply chain. This rapid improvement was enabled by
our continued focus on the WABCO Operating System, an advanced
management system that allows us to accelerate operational improvement
across our value chain."
"During the quarter, we
were also successful in returning our Aftermarket growth rate to
double-digit levels," Esculier said. Aftermarket sales for the Company
grew 10% in the quarter versus prior year.
The Company generated
$76.5 million in net cash from operating activities and $45.8 million of
free cash flow for the quarter. The Company continued its share buy-back
program in the fourth quarter and repurchased approximately 1.8 million
shares of stock for $87 million in open market transactions.
FOURTH-QUARTER 2007
BUSINESS HIGHLIGHTS
During the quarter,
WABCO continued to grow its business globally with the nomination by
Daimler AG to become its exclusive supplier of ABS and EBS wheel speed
sensors for Mercedes-Benz Trucks in Europe, Daimler Trucks North America
LLC (formerly Freightliner) in North America, and Mercedes-Benz Trucks,
Brazil, in South America. This award complements a second global award
by Daimler during the quarter for WABCO to supply solenoid valves for
all Daimler truck platforms globally, including Fuso in Japan. WABCO
also signed a contract extension with Volvo Group for deliveries of
compressors to its heavy vehicle platforms up to and including 2012.
In Korea, SsangYong
Motor selected WABCO as its supplier of vacuum pumps for its Euro 5
diesel engines. Trailer OEM Schmitz Cargobull AG and axle and suspension
supplier Gigant Holding AG, both chose WABCO as a supplier of air disc
brakes. Volkswagen Brazil nominated WABCO to provide air dryers for its
Constellation platform.
Demonstrating success
in expanding its business globally to serve customers in emerging
countries such as China and India, the Company won several distinguished
awards from customers in Asia. Yutong Group awarded WABCO an "Excellent
Supplier Award", the highest level of recognition by Yutong for its
suppliers. China National Heavy Duty Truck Group Co. (CNHTC) recognized
WABCO with two awards: "Best Supplier Award" from its engine division
and the "Quality Trust Award" from its special vehicle division.
FULL-YEAR RESULTS
The company reported
full year 2007 net income of $125.4 million, or $1.81 per diluted share,
on a U.S. GAAP basis, versus $137.8 million, or $1.98 per diluted share
in 2006. On a performance basis, which excludes separation costs,
operational streamlining expenses, and one-time and discrete tax items,
net income increased 45% to $208.5 million, or $3.01 per diluted share,
compared with $144.1 million or $2.07 per diluted share a year ago.
Full year 2007 sales
were $2.4 billion, up 20% versus prior year. Excluding favorable foreign
exchange effects, sales were up 11% versus prior year.
FULL-YEAR PERFORMANCE
ESTIMATES 2008
"2008 looks like
another record-setting year for WABCO fueled by continued growth
globally. While there is some concern about an economic slowdown in the
latter half of 2008, we believe WABCO will see sales growth between 8%
and 11%, in local currencies, for the year. We anticipate full-year
earnings per diluted share to increase 20 to 25%, at constant exchange
rates, on a performance basis due to improved operational efficiency,
increased volume and continued share repurchases during 2008," Esculier
said. Earnings per share on a performance basis excludes separation
costs, one-time and discrete tax items, and operational streamlining
expenses.
About WABCO
WABCO is a leading
provider of electronic braking, stability, suspension and transmission
control systems for heavy duty commercial vehicles. Customers include
the world's leading commercial truck, trailer and bus 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, WABCO employs more than 7,000 people
in 34 offices and production facilities worldwide. In 2007, WABCO's
total sales were $2.4 billion. WABCO is a publicly traded company and is
listed on the New York Stock Exchange under the stock symbol WBC. Web
site:
www.wabco-auto.com.
Forward-Looking
Statements
Comments in this
document contain certain forward-looking statements, which are based on
management's good faith expectations and beliefs concerning future
developments. Actual results may differ materially from these
expectations as a result of many factors. These factors include, but are
not limited to, the risks and uncertainties described in the "Risk
Factors" section and the "Forward Looking Statements" section of WABCO's
Information Statement included in the Form 10 filing made in connection
with WABCO's spinoff from American Standard Companies Inc., as well as
in the "Management's Discussion and Analysis of Financial Condition and
Results of Operations-Information Concerning Forward Looking Statements"
section of WABCO's Form 10-Q Quarterly Report for the Quarter Ended
September 30, 2007. WABCO does not undertake any obligation to update
such forward-looking statements. All market and industry data are based
on Company estimates
Source: WABCO
Press Release