WABCO Holdings Inc. today reported record Q1 2008 sales of $705 million, up 26 percent over last year and up 12 percent in local currencies, continuing the company's long track record of quarterly growth.
"These results again demonstrate our continued ability to outperform the global commercial vehicle market," said Jacques Esculier, WABCO Chief Executive Officer. "We outpaced the industry performance in all regions of the world, led by our 36 percent growth in Asia. Commercial vehicle production in Europe, our largest market, grew by 10 percent while our sales increased by 12 percent. Even in North America this quarter, where the market contracted by 27 percent, we succeeded in containing our sales decline to 14 percent."
WABCO reported Q1 2008 operating income of $83.7 million, up 34 percent over prior year on a U.S. GAAP basis. Performance operating income, which excludes separation and streamlining costs, rose to $91.5 million, up 44 percent over prior year; up 27 percent in local currencies.
WABCO's U.S. GAAP operating margin in Q1 2008 increased to 11.9 percent, expanding 65 basis points over prior year. Performance operating margin increased to 13.0 percent, expanding 157 basis points over prior year in local currencies.
On a U.S. GAAP basis, Q1 2008 net income increased by 53 percent to $61.3 million or $0.91 cents per diluted share from $40.1 million or $0.58 cents per diluted share a year ago. On a performance basis that excludes separation costs, operational streamlining expenses, and one-time and discrete tax items, Q1 2008 net income increased by 52 percent to $70.3 million or $1.04 per diluted share versus $46.4 million or $0.67 cents per diluted share a year ago.
In Q1 2008, WABCO started delivery of transmission automation systems for the second generation powershift used in new Mercedes-Benz Actros trucks.
WABCO signed an agreement with China National Heavy Truck Company (CNHTC) in Q1 2008 to supply clutch control systems beginning in 2009. Also in Q1 2008, the company was awarded a vacuum pump contract for diesel applications by a U.S. customer starting in 2010.
In February 2008, WABCO introduced OnGuard, a breakthrough technology and the world's first collision mitigation system with active braking for commercial vehicles. OnGuard is targeted to be available in Q3 2008 as a factory-installed option at several original equipment manufacturers.
Raising its full-year 2008 projections, WABCO expects sales growth between 9 and 12 percent, in local currencies, for the year, up 1 percent from its previous guidance. WABCO has also raised its full-year U.S. GAAP and performance diluted EPS projections. The revised range for U.S. GAAP diluted EPS is $3.56 to $3.71; the revised range for performance diluted EPS is $3.91 to $4.05, up $0.18. EPS on a performance basis excludes separation costs, operational streamlining expenses, and one-time and discrete tax items.