WABCO Reports Q2 2012 Results; Delivers Record Operating Margin at 14.6% Despite Global Market Slowdown and Uncertainty; Maintains Guidance for Full Year 2012 Performance Results
(firmenpresse) - BRUSSELS, BELGIUM -- (Marketwire) -- 07/27/12 -- WABCO Holdings Inc. (NYSE: WBC)
WABCO Holdings Inc. (), a global technology leader and tier-one supplier to the commercial vehicle industry, today reported Q2 2012 sales of $635 million, down 4.5 percent in local currencies from a year ago and down 13.9 percent on a U.S. GAAP basis, reflecting anticipated market slowdown.
"As we predicted, Q2 2012 continued to show 2012 as a year of transition involving global slowdown of truck and bus production in uncertain and unstable markets across all regions. WABCO's sales declined by 4.5 percent in local currencies during Q2 2012, reflecting the commercial vehicle industry's overall slump and, in particular, a year-on-year contraction of 7 percent in new truck and bus builds in Europe, our largest market," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "Nonetheless, in Q2 2012 we delivered performance operating margin at 14.6 percent, a new quarterly record and further evidence of WABCO's continued ability to deliver superior profitability."
"China, India and Brazil accounted for more than half of the world's truck and bus production in Q2 2012, and we continued to outperform these emerging markets by increasing adoption of our technologies, resulting in higher value of WABCO content per vehicle," said Esculier.
WABCO reported Q2 2012 performance operating income of $92.8 million versus $100.2 million a year ago, and operating income was $92.8 million on a U.S. GAAP basis versus $99.0 million a year ago.
WABCO reported Q2 2012 performance operating margin of 14.6 percent, up from 13.6 percent a year ago, and operating margin was 14.6 percent on a U.S. GAAP basis, up from 13.4 percent a year ago.
WABCO reported Q2 2012 performance net income attributable to the company of $78.2 million or $1.19 per diluted share versus $86.1 million or $1.23 per diluted share a year ago, and Q2 2012 U.S. GAAP net income attributable to the company of $75.6 million or $1.15 per diluted share versus $88.6 million or $1.26 per diluted share a year ago.
WABCO generated $75.2 million in net cash from operating activities in Q2 2012, resulting in free cash flow of $53.5 million. Excluding payments of $3.1 million for streamlining and separation activities, free cash flow was $56.6 million, which is a conversion rate of 72 percent of performance net income attributable to the company, bringing year-to-date 2012 conversion rate to 87 percent.
"Q2 2012 resulted in yet another consecutive quarter of superior profitability and once more demonstrates how WABCO consistently and efficiently flexes with changes in market demand to continue to deliver outstanding value for our shareowners," said Esculier. "WABCO's fundamentals remain firmly in place as we continue to improve operating margin and profitability while sustaining market share in dynamic and disruptive market conditions."
"WABCO's Operating System, one of our industry's most advanced management environments, continued to enable fast and flexible responses to significant market changes. It generated $18.0 million of materials and conversion productivity in Q2 2012, another robust result. Gross materials productivity represented 5.4 percent of total materials cost but, as anticipated, the impact of commodity inflation reduced net materials productivity to 4.3 percent," said Esculier. "Q2 2012 was also another powerful quarter throughout our organization for conversion productivity, which we delivered at 7.3 percent, an all-time quarterly record, as we continuously flexed capacity to satisfy changes in market demand."
Since the initiation of WABCO's share buyback program in June 2011, the company has repurchased 5.4 million shares for $281.6 million in open market transactions while maintaining a strong balance sheet with a positive net cash position of $62.1 million as of June 30, 2012.
Recent Highlights
In Q2 2012, WABCO announced that it has entered into a long-term supply agreement with Daimler Trucks North America (DTNA), a leading original equipment manufacturer. WABCO will supply its breakthrough MAXXUS™ air disc brake technology for series production on DTNA's trucks starting in July 2012. WABCO's MAXXUS technology breakthrough represents the lightest and highest performing single-piston air disc brake for North America's commercial vehicle industry.
WABCO reported in Q2 2012 that its WABCO INDIA subsidiary has been recognized with a top award for outstanding support in co-location from Ashok Leyland, India's second largest manufacturer of commercial vehicles. WABCO employees at Ashok Leyland's new manufacturing facility in Pant Nagar, India, expertly equip trucks with WABCO braking components, thus further enabling zero-defect installation. As a result, WABCO consistently delivers superlative service quality and product reliability.
In Q2 2012, WABCO disclosed that it has entered into a multi-year agreement with leading global automaker Chrysler Group to supply innovative vacuum pump technology. WABCO's industry-leading vacuum pumps offer compact, light-weight design with ultra-low power consumption that helps improve the vehicle's fuel economy while also reducing emissions. WABCO currently supplies mechanical vacuum pumps for passenger cars in series production in North America, Europe and Asia. This contract marks WABCO's second such agreement with leading North American automotive manufacturers.
WABCO reported in Q2 2012 that it has expanded its long term partnership with Kogel through a new supply agreement for WABCO's award-winning TrailerGUARD™ system, a state-of-the-art telematics technology for trailer fleet management. Kogel, one of the largest manufacturers of commercial trailers in Europe, is headquartered in Germany. WABCO's TrailerGUARD combines telematics with diagnosis of the vehicle's various operating data.
Also in Q2 2012, WABCO said that it has entered into a long term agreement with IVECO to supply anti-lock braking technology for their platforms of light- and medium-duty trucks produced in Brazil from 2013 onward. IVECO, a global manufacturer of commercial vehicles, is headquartered in Italy. This supply agreement is consistent with the Brazilian federal government's mandate for compulsory anti-lock braking systems (ABS) on new trucks, buses and trailers to further increase vehicle and road safety. According to Brazilian legislation, 40 percent of total commercial vehicles produced in Brazil in 2013 must be equipped with ABS and 100 percent in 2014.
Full Year 2012 Guidance
WABCO reiterates its previously disclosed guidance for 2012 which includes estimated 2012 sales growth to range between negative 2 percent and positive 3 percent in local currencies.
WABCO reiterates its previously disclosed guidance for 2012 performance operating margin to range from 12.8 to 13.8 percent, while operating margin on a U.S. GAAP basis is updated to now range from 12.5 to 13.5 percent, up from its previous guidance to range from 12.3 to 13.3 percent, resulting in diluted earnings per share on a performance basis from $4.30 to $4.80 as previously disclosed, and diluted earnings per share on a U.S. GAAP basis is updated to now range from $4.42 to $4.92, up from its previous guidance to range from $4.32 to $4.82.
WABCO reiterates that it expects to convert between 80 and 90 percent of its net income attributable to the company into free cash flow, excluding payments associated with streamlining and separation activities.
"WABCO's three-pillar strategy - technology leadership, globalization and excellence in execution - continues to power the future success of WABCO," said Esculier. "We remain fully prepared to continue to outperform the market globally in 2012 as we continuously flex capacity to satisfy changes in market demand."
Conference Call
WABCO Chairman and Chief Executive Officer Jacques Esculier and Chief Financial Officer Ulrich Michel will discuss WABCO's results and outlook on a conference call at 9 a.m. Eastern Time today. It will be webcast at where the press release and financial information will be available under "WABCO Q2 2012 Results."
The call is also accessible by telephone in listen only mode. Dial-in number is +1 408 940 3818 and U.S. toll-free dial-in number is 877 844 0834.
A replay of the call will be available from 12:00 Noon Eastern Time on July 27 until midnight August 27, 2012. Replay dial-in number is +1 404 537 3406 and U.S. toll-free dial-in number is 855 859 2056. Pass code is 92224344.
About WABCO
WABCO (NYSE: WBC) is a leading global supplier of technologies and control systems for the safety and efficiency of commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability and transmission automation systems supplied to the world's leading commercial truck, trailer and bus manufacturers. With sales of $2.8 billion in 2011, WABCO is headquartered in Brussels, Belgium. For more information, visit .
Forward-Looking Statements
This document contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995 that are based on management's good faith expectations and beliefs concerning future developments. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "strategies," "prospects," "intends," "projects," "estimates," "plans," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward looking in nature and not historical facts. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the actual level of commercial vehicle production in our end markets, adverse developments in the business of our key customers, pricing changes to our supplies or products, and the other risks and uncertainties described in the "Risk Factors" section and the "Information Concerning Forward Looking Statements" section of WABCO's Form 10-K, 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 Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on company estimates.
Non-GAAP Financial Measures
To facilitate the understanding of Q2 2012 results, several tables follow this news release. Sales excluding the effects of foreign exchange, incremental gross and operating margin and EBIT are non-GAAP financial measures. Additionally, operating income, EBIT, net income attributable to the company and net income attributable to the company per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation and streamlining items, the one-time impact from an adjustment to the UK pension plan, and discrete and other one-time tax items, as applicable. Free cash flow presents our net cash provided by operating activities less net cash used for purchases of property, plant, equipment, and computer software. These measures should be considered in addition to, not as a substitute for, GAAP measures. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the company's business. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees.
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Datum: 27.07.2012 - 04:30 Uhr
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