Wabtec Third Quarter Sales Up By 13 Percent

Wabtec Corporation has reported that 2018 third quarter sales increased by 13 percent to $1.08 billion compared to the year-ago quarter. Organic sales increased $107 million, and sales from acquisitions increased $32 million. Changes in foreign currency exchange rates decreased sales by $20 million. Earnings per diluted share were $.91, including expenses for the proposed GE Transportation merger, restructuring actions, and the effects of tax law changes in the United States and India. 

Third quarter income from operations was $125 million, including expenses of $11 million related to the proposed GE Transportation merger, restructuring actions and a tax law change in India. Excluding those items, income from operations for the quarter was $136 million, or 12.6 percent of sales. 

Transit Group sales increased $68 million, or 11 percent, for the quarter. The increase was mainly due to organic sales growth of $61 million and sales from acquisitions of $21 million. Changes in foreign currency exchange rates decreased sales by $14 million. Income from operations was $61 million, or 8.9 percent of sales.

“With a solid backlog and positive trends in our markets, we expect to finish the year with a strong fourth quarter, both in earnings and cash flow, to position the company for growth in 2019,” said Raymond T. Betler, Wabtec president and CEO. “Our freight business continues to show strong growth in revenues and income from operations, with good market indicators for the foreseeable future. In transit, we have a near-record backlog and strong bidding activity, as we take actions to drive sustainable profitability improvements in the business.”

“We are making progress toward combining with GE Transportation and are excited about our strategic opportunities to accelerate innovation for our customers, while delivering improved earnings, margins and cash flow for our shareholders,” added Betler. 

Based on its year-to-date results, Wabtec expects the full year revenues to be about $4.35 billion and earnings per diluted share are expected to be about $3.85 excluding estimated costs related to the proposed GE Transportation merger, expenses for restructuring and the effects of tax law changes.