WABCO continues to outperform global commercial vehicle market in Q3

WABCO continues to outperform global commercial vehicle market in Q3


WABCO has reported third quarter sales of $914.8m, up 10.5 percent from a year ago. The company also reported operating margins of 11.7 percent up from 11.3 percent a year ago; performance Q3 2018 operating margin of 12.8 percent versus 14.5 percent a year ago.

“In Q3 2018, global truck and bus production declined by 8 percent year-over-year driven by a drop of 27 percent in China, partially offset by further market growth in the Americas and India. In this environment, WABCO continued to outperform the commercial vehicle industry and achieved $915m in sales, an increase of 10.5 percent from a year ago and up 13.4 percent in local currencies,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer.

WABCO’s Operating System, the company’s globally standardised management environment, delivered $16.6m of net materials and conversion productivity representing 3.8 percent of gross materials productivity and 7.7 percent of conversion productivity.

“WABCO delivered performance operating income of $117m in line with the previous year at equal exchange rates only partially mitigating headwinds related to the continued supply chain constraints within certain areas of the industry, raw material cost inflation, as well as increased engineering expenses,” added Jacques.

Subsequent to quarter end, WABCO has been notified of a favourable arbitration settlement that reduces WABCO’s 2018 full year performance tax rate to 17.1 percent and to 10 percent for the third quarter.

“In this challenging global market environment, WABCO delivered solid performance EPS growth of 4 percent and strongly converted income into cash, resulting in net cash from operating activities of $134m, up almost 60 percent compared with the third quarter of 2017,” said Jacques.

In the third quarter WABCO strongly converted income into cash, resulting in net cash from operating activities of $134.4m up 59.8 percent from $84.1m a year ago.

The company reported diluted EPS of $1.41, up 8.5 percent from $1.30 a year ago; performance Q3 2018 diluted EPS of $1.78, up 4.1 percent from $1.71 a year ago. Diluted EPS guidance for full year 2018 has been updated to now range from $7.20 to $7.40 versus previous guidance from $7.10 to $7.40; performance full year 2018 diluted EPS has been updated to now range from $7.65 to $7.85 versus previous guidance from $7.45 to $7.75.

WABCO has also updated its sales guidance for full year 2018 to now range from $3,850m to $3,900m versus previous guidance from $3,850m to $3,950, primarily driven by foreign exchange assumptions.

For more information visit: www.wabco.com

22nd October 2018