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Wabtec Reports Record Results for 2014; Issues 2015 Earnings Guidance of About $4.05

Globe Newswire

WILMERDING, Pa., Feb. 18, 2015 (GLOBE NEWSWIRE) -- Wabtec Corporation (NYSE:WAB) today reported record results for 2014, including the following:

  • In the fourth quarter, earnings per diluted share were a record 95 cents, 25 percent higher than the year-ago quarter.
  • Sales for the fourth quarter increased 20 percent to a record $821 million, driven by higher sales in both the Freight and Transit groups.
  • Income from operations in the fourth quarter was a record $137 million or 16.7% of sales, compared to $111 million or 16.3% of sales in the year-ago fourth quarter.
  • For the full year, Wabtec had sales of $3.04 billion, income from operations of $527 million or 17.3% of sales, and earnings per diluted share of $3.62, all records. For the full year, the company generated cash flow from operations of $472 million, which exceeded net income of $352 million.
  • At year-end, the company had cash of $426 million and debt of $520 million.
  • In 2014, Wabtec repurchased 346,800 shares of its common stock for about $27 million.

Also today, Wabtec issued 2015 guidance for earnings per diluted share of about $4.05, with revenues expected to increase about 10%.

Raymond T. Betler, Wabtec's president and chief executive officer, said: "We finished the year with a strong performance in the fourth quarter, and we are anticipating record results again in 2015. While we expect to face challenges this year, including global economic uncertainty and foreign currency exchange headwinds, we will benefit from ongoing investment in freight rail and passenger transit projects around the world. Our long-term growth prospects remain solid, thanks to our diversified business model, balanced strategies and rigorous application of the Wabtec Performance System."

Wabtec (www.wabtec.com) is a global provider of technology-based products and services for rail and industrial markets. This release contains forward-looking statements, such as statements regarding the company's expectations about future earnings. Actual results could differ materially from the results suggested in any forward-looking statement. Factors that could cause or contribute to these material differences include, but are not limited to, an economic slowdown in the markets we serve; a decrease in freight or passenger rail traffic; an increase in manufacturing costs; and other factors contained in the company's filings with the Securities and Exchange Commission. The company assumes no obligation to update these statements or advise of changes in the assumptions on which they are based.

Wabtec will host a call with analysts and investors at 10 a.m., eastern time, today. To listen via webcast, go to www.wabtec.com and click on "Webcasts" in the "Investor Relations" section.

 
WABTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2014 AND 2013
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
 
 
  Fourth Fourth For the For the
  Quarter Quarter Year End Year End
  2014 2013 2014 2013
         
Net sales  $ 820,866  $ 681,482  $ 3,044,454  $ 2,566,392
Cost of sales  (566,569)  (481,357)  (2,108,472)  (1,802,365)
Gross profit  254,297  200,125  935,982  764,027
Gross profit as a % of Net Sales 31.0% 29.4% 30.7% 29.8%
         
Selling, general and administrative expenses  (93,117)  (71,142)  (324,539)  (262,718)
Engineering expenses  (18,328)  (12,754)  (61,886)  (46,289)
Amortization expense  (5,889)  (5,011)  (22,448)  (17,710)
Total operating expenses  (117,334)  (88,907)  (408,873)  (326,717)
Operating expenses as a % of Net Sales 14.3% 13.0% 13.4% 12.7%
         
Income from operations  136,963  111,218  527,109  437,310
Income from operations as a % of Net Sales 16.7% 16.3% 17.3% 17.0%
         
Interest (expense) income, net  (4,005)  (4,627)  (17,574)  (15,341)
Other income (expense), net  (1,752)  951  (1,680)  (882)
Income from operations before income taxes  131,206  107,542  507,855  421,087
         
Income tax expense  (38,520)  (33,501)  (156,175)  (128,852)
Effective tax rate 29.4% 31.2% 30.8% 30.6%
         
Net income attributable to Wabtec shareholders  $ 92,686  $ 74,041  $ 351,680  $ 292,235
         
Earnings Per Common Share        
Basic        
Net income attributable to Wabtec shareholders  $ 0.96  $ 0.77  $ 3.66  $ 3.05
         
Diluted        
Net income attributable to Wabtec shareholders  $ 0.95  $ 0.76  $ 3.62  $ 3.01
         
Weighted average shares outstanding        
Basic  95,894  95,768  95,781  95,463
Diluted  97,056  97,142  96,885  96,832
         
Sales by Segment        
Freight Group  $ 481,140  $ 389,034  $ 1,731,477  $ 1,398,103
Transit Group  339,726  292,448  $ 1,312,977  $ 1,168,289
Total  $ 820,866  $ 681,482  $ 3,044,454  $ 2,566,392

CONTACT: Tim Wesley Phone: 412.825.1543 E-mail: twesley@wabtec.com Website: www.wabtec.com Wabtec Corporation 1001 Air Brake Avenue Wilmerding, PA 15148Source:Westinghouse Air Brake Technologies