WABCO Reports Q1 2016 Results; Strongly Outperforms a Further Eroding Global Commercial Vehicle Market; Maintains Guidance for 2016
(firmenpresse) - BRUSSELS, BELGIUM -- (Marketwired) -- 04/22/16 --
WABCO Holdings Inc. (NYSE: WBC) (), a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, today reported Q1 2016 results, including the consolidated results of MICO Incorporated, which WABCO acquired in February 2016.
WABCO reported Q1 2016 sales of $688.7 million, up 9.7 percent in local currencies from a year ago and up 5.6 percent in U.S. dollars, of which 1.2 percent comes from the Q1 2016 consolidated results in local currencies of MICO Incorporated, WABCO''s newly acquired subsidiary.
In Q1 2016, WABCO reported performance operating income of $96.5 million, up from $93.5 million a year ago; performance operating margin of 14.0 percent versus 14.3 percent a year ago; and performance net income attributable to the company of $77.6 million or $1.37 per diluted share versus $83.1 million or $1.41 per diluted share a year ago.
In Q1 2016, WABCO reported U.S. GAAP operating income of $87.0 million, up from $85.5 million a year ago; and U.S. GAAP operating margin of 12.6 percent versus 13.1 percent a year ago. As a result of a non-cash provision of $86.4 million associated with a clawback required in accordance with the previously disclosed European Commission decision against the Belgian tax authority, WABCO reported U.S. GAAP net income attributable to the company in Q1 2016 of negative $13.4 million or negative $0.24 per diluted share versus $71.9 million or $1.22 per diluted share a year ago.
"In Q1 2016, once more, we demonstrated WABCO''s outstanding ability to generate sales growth that solidly outperforms the commercial vehicle market relative to global truck and bus production as we increased sales by 8.5 percent organically in local currencies, despite an overall decline of 2 percent in new truck and bus builds worldwide," said Jacques Esculier, WABCO Chairman and Chief Executive Officer.
"We continued to augment levels of WABCO content per vehicle through market share gain and further adoption of safety and efficiency technologies during Q1 2016," said Esculier. "For example, some of WABCO''s growth was propelled by a European Union mandate for advanced emergency braking systems on new commercial vehicles that came into effect in November 2015 in our largest market, where this quarter we outperformed truck and bus production by 9 percentage points."
"In addition, in Q1 2016, WABCO massively outperformed the market in India where national regulations mandate anti-lock braking systems (ABS) for a wide range of commercial vehicles built as of October 2015," said Esculier. "Currently, in India, 9 out of 10 commercial vehicles regulated by the ABS mandate are equipped with WABCO systems."
In Q1 2016, WABCO''s Operating System, the company''s globally standardized management environment, delivered $19.8 million of materials and conversion productivity, a continued robust result. It generated gross materials productivity of 5.6 percent, a strong quarterly gain. It also delivered conversion productivity of 6.4 percent in our factories spanning 4 continents, another continued robust achievement.
"We continued our focus on generating further cost efficiency throughout WABCO''s global supply chain, which contributes as a major driver in support of our healthy incremental operating margin," said Esculier. Incremental operating margin refers to the ratio of increase in performance operating income and WABCO''s growth in sales at constant exchange rates.
"In addition, WABCO continued to define and drive further cost savings in operating expenses, resulting in a particularly strong contribution in Q1 2016 and enabling us to keep investing strategically in our business," said Esculier. "Relentless and rigorous cost management further differentiates WABCO, and given this quarter''s initiatives and accomplishments, we are well on our way to deliver more than $15 million in cost savings for full year 2016."
In Q1 2016, WABCO generated $93.2 million in net cash from operating activities and $68.3 million of performance free cash flow, resulting in a conversion rate of 88 percent of performance net income attributable to the company.
Since June 2011, WABCO has repurchased 16,465,712 shares for $1,283.5 million in open market transactions as of March 31, 2016. WABCO is further authorized to repurchase up to $188.3 million of additional shares through December 31, 2016.
Recent Highlights
On April 19, 2016, WABCO announced that it has acquired Laydon Composites Ltd. (LCL), a manufacturer of aerodynamic devices for heavy-duty trucks and trailers. Headquartered in Oakville, Ontario, Canada, LCL generated revenues of approximately CAD$25 million in 2015. LCL was privately owned and operated. Through the acquisition, WABCO is the only supplier that provides a full range of aerodynamic devices for commercial vehicles worldwide. Aerodynamic products reduce air drag of commercial trucks traveling long distances at highway speeds, thereby lowering fuel consumption and CO2 emissions. Aerodynamic devices help commercial vehicle fleet operators to improve their operational efficiency and environmental performance. WABCO and LCL have similar cultures characterized by world-class engineering expertise and excellence in execution. This acquisition creates attractive growth opportunities.
On April 14, 2016, WABCO disclosed that - from Q2 2015 to Q1 2016 - it has entered into contracts in local currencies with customers across the globe that total $918 million of expected cumulative incremental business. These awards include $612 million in new business to be realized from 2016 through 2020 inclusive. These contracts represent new incremental business for WABCO that is separate from replacement and renewal of existing contracts. It comprises orders for WABCO technologies, systems and products that improve the safety and efficiency of commercial vehicles as well as cars. It also includes fleet management solutions that enhance connectivity between the truck, trailer, driver and fleet hub. These new contracts underline WABCO''s continuing ability to generate sales growth that outperforms the commercial vehicle market relative to global truck and bus production.
In Q1 2016, WABCO started delivery of its industry-leading MAXX™ air disc brakes to Daimler AG, the world''s largest manufacturer of trucks over six tons. Daimler now equips its current heavy-duty truck platforms for the European market - including market-leading Actros®, Antos® and Arocs® models - with WABCO''s high-performance single-piston air disc brakes (ADB). WABCO is supplying the market''s lightest air disc brake package for heavy-duty vehicles, comprising breakthrough MAXX 22 on the front axle and new MAXX 22L on the rear axle. Superbly engineered and compactly designed, WABCO''s MAXX 22L is more than 7 percent lighter than MAXX 22 - already recognized as the industry''s lightest and highest performing single-piston ADB for commercial vehicles. WABCO has supplied MAXXUS™ air disc brakes to Daimler Trucks North America for series production since 2012. MAXXUS ADB is also based on MAXX single-piston technology.
Also in Q1 2016, WABCO marked a milestone of over 100,000 OnGuard™ collision mitigation systems sold in North America. OnGuard is a radar-based active safety system for commercial vehicles, together with adaptive cruise control, that offers collision warnings and collision mitigation with active braking. It detects vehicles ahead and warns the driver of a possible rear-end collision. If the driver fails to take corrective action, the system automatically applies the brakes to help mitigate or prevent impending rear-end collisions. Equipped on heavy-duty trucks since 2007, OnGuard is North America''s leading collision mitigation system. More than 200 fleets are using the system and have reported up to 87 percent fewer accidents since adopting OnGuard.
Transics continued its successful adoption of TX-TRAILERGUARD™ among customers in Europe during Q1 2016, achieving nearly 700 systems ordered since its release to the fleet market in the previous quarter and marking one of Transics'' strongest new product introductions. TX-TRAILERGUARD is an industry-first fleet management solution (FMS). It enables transmission of a rich source of real-time information on the performance of the truck, trailer and driver - all integrated onto a single screen on the fleet manager''s desk. This FMS can help to boost fleet safety and efficiency by relaying critical data such as the status of the vehicle''s electronic braking system, tire pressure, security, axle load and cargo temperature as well as other operating functions.
In Q1 2016, WABCO unveiled its next generation OnLane™ lane departure warning system. Strongly benefiting fleet operators and drivers, WABCO''s latest advanced driver assistance system features a high-resolution camera integrated with a SmartDrive™ video-based driver performance management system - an industry first. OnLane continuously monitors the vehicle''s position within lane markings and alerts the driver to take corrective action when it detects unintentional lane changes. Linked to SmartDrive''s driver performance technology, OnLane enables video recording and near real-time video analysis. SmartDrive''s capabilities help to improve driving efficiency and enhance road safety.
WABCO Maintains Previously Disclosed Full Year 2016 Guidance
Sales growth is expected to range from 6 to 11 percent in local currencies.
On a performance basis, WABCO expects 2016 operating margin to range from 13.8 to 14.3 percent, resulting in diluted EPS to range from $5.30 to $5.80.
On a U.S. GAAP basis, WABCO expects to maintain 2016 operating margin guidance to range from 12.7 to 13.2 percent, and diluted EPS to range from $3.43 to $3.93, including the one-time, non-cash tax expense related to the European Commission''s January 2016 decision against the Belgian tax authority.
WABCO expects in 2016 to convert between 80 and 90 percent of its performance net income attributable to the company into performance free cash flow.
"In an environment showing signs of further erosion in global truck and bus production - but partially offset by favorably evolving foreign exchange - we still maintain our 2016 guidance mainly due to WABCO''s ability to outperform the commercial vehicle market and to deliver continuous productivity gains," said Esculier.
"In addition, we remain committed to transforming top-line growth into healthy bottom-line results through our three-pillar strategy of technology leadership, globalization and excellence in execution," said Esculier. "We also remain confident in our ability to continue to deliver outstanding value for WABCO''s shareowners."
Conference Call
Jacques Esculier, Chairman and Chief Executive Officer, and Prashanth Mahendra-Rajah, Chief Financial Officer, will discuss WABCO''s results and outlook on a conference call at 9:00 a.m. Eastern Time today. It will be webcast at where the press release and financial information will be available under "WABCO Q1 2016 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 April 22 until 12:00 Noon Eastern Time on April 29, 2016. Replay dial-in number is +1 404 537 3406 and U.S. toll-free dial-in number is 855 859 2056. Conference ID is 68980212
About WABCO
WABCO (NYSE: WBC) is a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles. Founded nearly 150 years ago, WABCO continues to pioneer breakthrough innovations for advanced driver assistance, braking, stability control, suspension, transmission automation and aerodynamics. Partnering with the transportation industry as it maps a route toward autonomous driving, WABCO also uniquely connects trucks, trailers, drivers, cargo, and fleet operators through telematics, as well as advanced fleet management and mobile solutions. WABCO is regularly recognized among "the best of the best" companies. Forbes named WABCO "America''s Best-Managed Capital Goods Company." For four consecutive years, Institutional Investor named WABCO among the "Top 3" in its sector for "Best CEO." WABCO reported sales of $2.6 billion in 2015. Headquartered in Brussels, Belgium, WABCO has 12,000 employees in 39 countries. WABCO''s 2015 Annual Report is now available at . 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, our ability to successfully integrate any acquired businesses or our acquired businesses not performing as planned, the outcome of the European Commission''s decision to invalidate Belgium''s Excess Profit Ruling Program and the company''s ability to avail itself of alternative tax relief for the period subject to the clawback or the success of any other avenues the company pursues to mitigate the impact of the European Commission''s decision, 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 Q1 2016 results, several tables follow this news release. Sales excluding the effects of foreign exchange and EBIT are non-GAAP financial measures. Additionally, operating income, operating margin, 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 items for separation, streamlining and acquisition, discrete and one-time tax items, and other items that may mask the underlying operating results of the company, as applicable. Performance free cash flow presents our net cash provided by operating activities less net cash used for purchases of property, plant, equipment, and computer software; and excludes streamlining, separation, acquisition and certain indirect tax-related payments. These measures should be considered in addition to, not as a substitute for, GAAP measures. These measures may not be comparable to similar measures of other companies as not all companies calculate these measures in the same manner. 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: 22.04.2016 - 04:30 Uhr
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