Wabtec Corporation has reported 2017 second quarter sales increased by 29 percent to $932 million compared to the year-ago quarter. Changes in foreign exchange rates reduced sales by $15 million compared to the year-ago quarter.
Transit Group sales increased due to the Faiveley Transport acquisition, and Freight sales were mainly affected by lower revenues from freight car and locomotive components and a slower-than-expected ramp-up of certain projects.
“We remain confident in our future growth opportunities, even as we manage aggressively through our short-term challenges,” said Raymond T. Betler, Wabtec president and CEO. “In transit, we have a record and growing backlog, with significant projects in all major markets around the world, and we are making meaningful progress in the Faiveley integration, with margins improving during the year.”
Income from operations was 12.2 percent of sales, for a total of $114 million, including restructuring and transaction expenses of $9 million related to the Faiveley integration and ongoing cost-reduction activities. Earnings per diluted share were $.75 for the quarter.
Betler added, “In freight, our backlog has now increased for three consecutive quarters, and demand appears to be stable in our key markets. Finally, we continue to invest in our balanced growth strategies, including new products and acquisitions, around the world.”
Wabtec, basing its observations on its year-to-date results and outlook for the rest of the year, expects modest improvement in its third quarter results and a stronger fourth quarter. For the full year, the company expects sales of approximately $3.85 billion and adjusted earnings per diluted share between $3.55 and $3.70. This excludes expected restructuring and transaction expenses, and non-controlling interest related to the Faiveley acquisition.