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Wabtec cites record 4Q earnings, good year

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Written by: Douglas John Bowen

Wabtec Corp. early Wednesday, Feb. 19, 2014, reported "record results" in its fourth quarter, including earnings per diluted share of 76 cents. Net income for the fourth quarter was $74 million, up from $64.8 million in the fourth quarter of 2012.

The company noted the fourth quarter "was impacted by after-tax expenses of 3 cents per diluted share, or $3.8 million pre-tax, primarily for restructuring actions." Adjusted for this, EPS of matched Wall Street consensus analyst estimates of 79 cents.

Fourth-quarter sales rose 12% from the comparable period a year ago, to $682 million, also a record, "driven by higher sales in both the Freight and Transit groups," Wilmerding, Pa.-based Wabtec said.

The company a year ago also reported record fourth-quarter earnings, notching $1.34 per diluted share in the fourth quarter of 2012, with sales also setting a record at $610 million, driven by the company's Transit Group.

For full-year 2013, Wabtec recorded sales of $2.57 billion and earnings per diluted share of $3.01, also records.

Wabtec Wednesday also issued 2014 guidance for earnings per diluted share of about $3.45, with revenue expected to increase about 15%. This includes the company's agreement announced last week to acquire Fandstan Electric Group, which is expected to close in this year's first quarter.

In a statement, Wabtec Chairman and CEO Albert J. Neupaver said, "Our business performed well in 2013, and we are anticipating record results again this year. While we expect only modest growth in the global economy, ongoing investment in freight rail and passenger transit bodes well for the future. Through our diversified business model, balanced growth strategies and rigorous application of the Wabtec Performance System, we remain confident in Wabtec's growth prospects."


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