WABCO Reports Q3 2012 Results; Delivers Robust Operating Margin Amid Sudden Downturn in Key Markets; Adjusts Guidance for Full Year 2012
WABCO Holdings Inc. (NYSE:WBC) -
-- Q3 2012 sales of $588 million, down 7.2 percent in local currencies and down 16.7 percent in U.S. dollars from a year ago -- Q3 2012 operating margin of 13.0 percent on a performance basis, down from 13.4 percent a year ago; operating margin of 12.4 percent on a U.S. GAAP basis, down from 13.1 percent a year ago -- Q3 2012 diluted EPS of $1.02 on a performance basis, down from $1.19 a year ago; diluted EPS of $1.19 on a U.S. GAAP basis, down from $1.22 a year ago -- In Q3 2012, WABCO generated $112.6 million in net cash from operating activities and $90.2 million of free cash flow, excluding payments of $4.3 million for streamlining and separation activities, resulting in a conversion rate of 136 percent of performance net income attributable to the company, bringing year-to-date 2012 conversion rate to 102 percent -- As announced on October 29, 2012, WABCO is now authorized to repurchase up to $459.8 million of shares through December 31, 2014 -- Previously disclosed guidance for full year 2012 sales is adjusted to decline between 4 and 5 percent in local currencies and full year 2012 diluted EPS on a performance basis is narrowed to now range from $4.28 to $4.38, while full year 2012 diluted EPS on a U.S. GAAP basis is adjusted to now range from $4.54 to $4.64
WABCO Holdings Inc., (www.wabco-auto.com) a global technology leader and tier-one supplier to the commercial vehicle industry, today reported Q3 2012 sales of $588 million, down 7.2 percent in local currencies from a year ago and down 16.7 percent in U.S. dollars, reflecting sudden downturn in key markets.
"We had previously stated that markets across all regions would be uncertain and unstable throughout 2012 but in Q3 2012 market conditions further deteriorated beyond what we expected as global truck and bus production declined 12 percent year on year and 8 percent versus the previous quarter," said Jacques Esculier, WABCO Chairman and Chief Executive Officer.
"Western Europe, our largest market, accelerated its downturn as new truck and bus builds declined 11 percent versus a year ago and 16 percent versus Q2 2012. In addition, North America reversed its growth trend in Q3 2012 as the market contracted almost 2 percent year on year and 16 percent versus the previous quarter," said Esculier. "Furthermore, truck and bus production in China dropped 17 percent year on year and 11 percent versus the previous quarter."
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