“In Q2 2013, WABCO delivered yet another record quarterly performance fueled by our continued ability to outperform a sluggish market. Indeed, WABCO’s revenues increased 6.8 percent year on year, helped by growth of 8.1 percent in aftermarket revenues,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer.
“In addition, WABCO’s Operating System, one of our industry’s most advanced management environments, continues to power excellence in execution across our organization, as it generated a productivity gain of $20.7 million in Q2 2013, an all-time quarterly record amount. It delivered savings of 4.8 percent of gross material costs and 6.2 percent of conversion costs. This robust result further demonstrates WABCO’s continued ability to optimize resources and flex capacity to address changes in market demand.”
WABCO reported Q2 2013 performance operating income of $91.7 million versus $92.8 million a year ago, and operating income was $86.4 million on a U.S. GAAP basis versus $92.8 million a year ago.
WABCO’s performance operating margin for Q2 2013 was 13.5 percent versus 14.6 percent a year ago, and operating margin was 12.7 percent on a U.S. GAAP basis versus 14.6 percent a year ago.
For Q2 2013, WABCO reported performance net income attributable to the company of $82.4 million or $1.30 per diluted share, up from $78.2 million or $1.19 per diluted share a year ago, and Q2 2013 U.S. GAAP net income attributable to the company of $83.2 million or $1.31 per diluted share, up from $75.6 million or $1.15 per diluted share a year ago.
During Q2 2013, WABCO generated $92.1 million in net cash from operating activities, resulting in free cash flow of $78.0 million, excluding payments of $6.5 million for streamlining and separation activities. This resulted in a conversion rate of 95 percent of performance net income attributable to the company.
Since June 2011, WABCO has repurchased 8,519,214 shares for $481.4 million in open market transactions as of June 30, 2013. WABCO is authorized to repurchase up to $318.6 million of additional shares through December 31, 2014.
“In Q2 2013, WABCO continued to outperform the global market, while also delivering a new record amount of productivity gain and a new quarterly record of diluted earnings per share of $1.30 on a performance basis, marking Q2 2013 as yet another consecutive quarter of success on our path to deliver outstanding value for our shareowners,” said Esculier.
In Q2 2013, WABCO’s factory in Miass, Russia, made its first delivery of products as WABCO has now begun locally supplying UralAZ, a major manufacturer of trucks. WABCO’s manufacturing site located in Miass is the company’s newest factory in its global network of 20 plants in 10 countries spanning 4 continents. UralAZ is part of the GAZ Group, Russia’s largest manufacturer of commercial vehicles. WABCO manufactures innovative pneumatic braking components and parts in Miass for Ural trucks in series production in Russia. Headquartered in Moscow, WABCO Russia has 5 sales offices and more than 110 Service Partners across the country.
As reported in Q2 2013, WABCO has entered into an agreement with Agrale, a major original equipment manufacturer based in Brazil and Argentina, to supply innovative hydraulic anti-lock braking (ABS) technology for Agrale’s full range of light commercial vehicles that use hydraulic brakes. According to safety legislation in Brazil, from January 2014, all new trucks, buses, trailers and passenger cars must have ABS installed. Light duty vehicles (under 6 tons gross weight) normally use hydraulic braking systems whereas heavier vehicles typically deploy pneumatic systems.
On July 10, 2013, the company announced that WABCO in the Netherlands has been recognized with a top award for quality achievement throughout 2012 by PACCAR Inc. It is the second year in a row that WABCO wins this top award. PACCAR recently honored WABCO’s manufacturing facility in Meppel, the Netherlands, which supplies vehicle parts and components for DAF trucks in series production at quality levels that equal or exceed PACCAR’s requirements.