wabco holdings inc (WBC) Key Developments
WABCO Holdings Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Revises Earning Guidance for the Full Year 2014
Jul 25 14
WABCO Holdings Inc. announced unaudited consolidated earnings results for the quarter and six months ended June 30, 2014. For the quarter, the company reported sales of $735.0 million against $678.2 million a year ago. Operating income was $90.4 million against $86.4 million a year ago. Income before income taxes was $95.8 million against $95.5 million a year ago. Net income attributable to company was $75.0 million against $83.2 million a year ago. Diluted net income per common share was $1.23 against $1.31 a year ago. Adjusted sales were $718.3 million against $678.2 million a year ago. Adjusted operating income was $96.5 million against $91.7 million a year ago. EBIT was $92.8 million against $93.1 million a year ago. Net cash provided by operating activities was $116.7 million against $92.1 million a year ago. Free cash flow was $88.8 million against $71.5 million a year ago. Purchases of property, plant, equipment and computer software was $24.5 million against $18.3 million a year ago. Performance operating income was $98.2 million, up from $91.7 million a year ago. Performance EBIT was $100.7 million against $94.9 million a year ago. Performance net income attributable to company was $86.6 million against $82.4 million a year ago. Performance net income attributable to company per diluted common share was $1.42 against $1.30 a year ago. The sales growth was 5.9% in local currencies.
For the six months, the company reported sales of $1,464.5 million against $1,322.9 million a year ago. Operating income was $174.6 million against $168.2 million a year ago. Income before income taxes was $183.5 million against $179.6 million a year ago. Net income attributable to company was $144.4 million against $156.9 million a year ago. Diluted net income per common share was $2.35 against $2.46 a year ago. Adjusted sales were $1,444.6 million against $1,322.9 million a year ago. Adjusted operating income was $186.0 million against $179.5 million a year ago. EBIT was $177.9 million against $175.2 million a year ago. Net cash provided by operating activities was $162.7 million against $156.1 million a year ago. Free cash flow was $111.6 million against $115.1 million a year ago. Net purchases of property, plant and equipment was $44.0 million against $33.8 million a year ago. Performance operating income was $188.1 million against $179.5 million a year ago. Performance EBIT was $193.8 million against $183.4 million a year ago. Performance net income attributable to company was $165.9 million against $157.3 million a year ago. Performance net income attributable to company per diluted common share was $2.70 against $2.47 a year ago.
For the full year of 2014, the company expects sales growth to now range from 6% to 9% in local currencies, versus previous guidance to range from 6% to 11%; performance operating margin to now range from 12.9% to 13.3%, versus previous guidance to range from 12.8% to 13.6%, and operating margin on a U.S. GAAP basis to now range from 12.2% to 12.6%, versus previous guidance to range from 12.4% to 13.2%, resulting in diluted EPS on a performance basis to now range from $5.45 to $5.75, versus previous guidance to range from $5.30 to $5.80 and diluted EPS on a U.S. GAAP basis to now range from $4.77 to $5.07, versus previous guidance to range from $4.78 to $5.28. Performance net income attributable to company expected to be in the range from $332.5 million to $350.8 million versus previous guidance to range from $323.3 million to $353.8 million. Reported net income attributable to company expected to be in the range from $290.7 million to $309.0 million versus previous guidance to range from $291.5 million to $322.0 million. Wabco cut the high end of its revenue forecast, now predicting sales growth of 6% to 9% in local currencies, against its prior guidance for sales growth of 6% to 11%. The company reiterated that it expects in 2014 to convert between 80% and 90% of its net income attributable to the company into free cash flow, excluding payments associated with streamlining, separation and acquisition items.
WABCO Seeks Acquisitions
Jul 25 14
WABCO Holdings Inc. (NYSE:WBC) seeks acquisitions. "So right now the plan is to continue to use the cash from the business to buy back shares, return that to the shareholders, as well as keep our eye out for acquisition opportunities; and at that point we may look at adding on some additional leverage to help with that. So for right now, I feel very good about the capital allocation policy for the Company, that were going to return cash to shareholders in the most tax efficient manner and that will be through buybacks and will continue to keep an eye out for acquisitions. As you may know, we have a pretty high bar here, so finding something that meets our requirements may take us some time," said Prashanth Mahendra-Rajah, WABCO Holdings Inc., Chief Financial Officer. "However I have not lowered my standards myself. Meaning that, we have more opportunities but we are still screening very much. You know, I would say we should expect to acquire company at a slow pace, but maybe not as slow as what we have seen since 2007. But believe me, we are still very, very demanding," said Jacques Esculier, WABCO Holdings Inc. - Chief Executive Officer and Chairman.
WABCO Holdings Inc. Launches Modular Braking System Platform
Jul 17 14
WABCO Holdings Inc. has launched its modular braking system platform (mBSP) and already won major awards for this breakthrough technology from two global commercial vehicle manufacturers headquartered in Europe. WABCO's braking architecture now enables its customers to interchangeably equip their diverse global truck and bus platforms with anti-lock braking (ABS) or electronic braking (EBS) systems based on regional market or regulatory requirements worldwide. Building on decades of experience gained from pioneering advanced braking systems for the commercial vehicle industry, WABCO's next generation braking platform mBSP features the degree of standardization in the industry across both components and system software of its ABS and EBS systems. WABCO mBSP reduces the number of ABS components by 50% to the same amount of components as in EBS. By leveraging the advantages of WABCO's unique mBSP system, vehicle manufacturers can significantly reduce system development, installation and software testing time, accelerate homologation for their diverse brands and vehicle portfolios globally, and bring new trucks and buses to market faster. WABCO mBSP also accommodates the seamless integration of customer's own software and added system functionalities. With WABCO's modular braking system, ABS and EBS components use the same mounting interfaces and connections on the commercial vehicle platform. Therefore, WABCO enables global truck and bus makers to tailor their vehicle platforms to regional requirements by interchangeably equipping them with either ABS or EBS. In addition, WABCO's modular approach helps commercial vehicle manufacturers to develop a range from value-based to premium truck and bus models on the same vehicle platforms depending on market needs.
WABCO Holdings Inc., Q2 2014 Earnings Call, Jul 25, 2014
Jun 25 14
WABCO Holdings Inc., Q2 2014 Earnings Call, Jul 25, 2014
WABCO Holdings Expands TailGUARD Safety System
Jun 12 14
WABCO Holdings Inc. has expanded its TailGUARD safety system to include waste management vehicles. TailGUARD helps to improve vehicle and operator safety by combining the functions of rear blind spot detection and automatic braking. TailGUARD assists operators while driving in reverse to detect both stationary and moving objects hidden in rear blind spots. The system uses up to six sensors to spot even small objects hidden from plain view behind the vehicle. TailGUARD alerts the driver to objects located in his blind spot via audio and visual signals. Once the safety technology detects objects in an area of 50cm to 200cm behind the vehicle, TailGUARD can automatically apply the brakes of vehicles equipped with Anti-lock Braking Systems (ABS) to prevent collisions. Operators may also retrofit their commercial vehicles with TailGUARD. Commercial vehicles equipped with Electronic Braking Systems (EBS) will enhance their safety profile through TailGUARD's audio and visual warning signals. Furthermore, trucks fitted with ABS will benefit from TailGUARD's combined functionality of aforementioned warning signals and automatic braking.