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WABCO Reports Q2 2017 Results; Continues to Strongly Outperform Global Commercial Vehicle Market; Raises Guidance for 2017

  • Q2 2017 sales of $795.0 million, up 8.6 percent from a year ago and up 10.4 percent in local currencies
  • Q2 2017 reported operating margin of 13.6 percent versus 14.2 percent a year ago; performance Q2 2017 operating margin of 14.7 percent versus 15.0 percent a year ago. Q2 2017 operating margin adversely affected by 0.5 percent of transactional foreign exchange impacts.
  • In Q2 2017, WABCO continued to strongly convert income into cash, resulting in net cash from operating activities of $88.2 million
  • Q2 2017 reported diluted EPS of $1.61, up from $1.33 a year ago; performance Q2 2017 diluted EPS of $1.69, up from $1.43 a year ago
  • Raises sales guidance for full year 2017 to now range from $3,025 million to $3,100 million versus previous guidance from $2,850 million to $2,990 million; sales growth to now range from 8 to 11 percent in local currencies versus previous guidance from 4 to 9 percent
  • Raises reported diluted EPS guidance for full year 2017 to now range from $5.74 to $6.04 versus previous guidance from $5.44 to $5.94; and performance full year 2017 diluted EPS to now range from $6.05 to $6.35 versus previous guidance from $5.55 to $6.05

BRUSSELS, Belgium, July 20, 2017 – WABCO Holdings Inc. (NYSE: WBC), a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, today reported Q2 2017 results.

“In Q2 2017, WABCO continued to demonstrate strong outperformance of the commercial vehicle industry relative to global truck and bus production,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer. “In addition, we delivered record quarterly earnings per share on a performance basis, up 18 percent year over year.”

“Indeed, Q2 2017 marked yet another quarter of further adoption of WABCO’s industry-leading safety and efficiency technologies globally,” said Esculier. “For example, in key markets like North America we augmented sales of automated manual transmission solutions and collision mitigation systems, while in China and India we increased penetration of anti-lock braking systems.”

In Q2 2017, reported operating margin was negatively impacted by 0.6 percent due to extraordinary professional fees incurred in connection with an acquisition proposal received by the company. Both parties engaged in advanced discussions, with WABCO being advised by the potential buyer that due diligence had been satisfactorily concluded. However, these discussions were subsequently terminated when final approval was not granted by the buyer’s board.

In Q2 2017, WABCO’s Operating System, the company’s globally standardized management environment, delivered $20.4 million of materials and conversion productivity, another robust quarterly result.

“In Q2 2017, we maintained momentum at driving cost efficiency across WABCO’s global value chain, with superior conversion productivity of 8.0 percent in our factories and solid gross materials productivity of 5.2 percent,” said Esculier.

WABCO continued in Q2 2017 to strongly convert income into cash, resulting in net cash from operating activities of $88.2 million.

sexy girl webcam WABCO Share Buyback Program

Since June 2011, WABCO has repurchased 19,328,912 shares for $1,591.0 million in open market transactions as of June 30, 2017, including 495,000 shares bought back for $60.2 million during Q2 2017. As previously disclosed, WABCO is further authorized to repurchase up to $480.0 million of additional shares through December 31, 2018.

enter site Recent WABCO Highlights

In Q2 2017, WABCO announced that Daimler Trucks has extended its long-term supply agreement with WABCO for new heavy-duty automated manual transmission (AMT) control technology to support its series production in Europe, North America, Japan and South America. Headquartered in Germany, Daimler Trucks is the world’s largest manufacturer of trucks over six tons. WABCO is supplying this original equipment manufacturer with its newest generation of tailored AMT solutions. WABCO’s innovative AMT control technology transforms a manual transmission into an efficient, cost-effective solution that automatically shifts gears and controls clutch actuation for commercial vehicles. WABCO’s newest AMT solution improves fuel economy through optimized gear shifting.

WABCO continues to strengthen its fleet management systems (FMS) business in India as the company has recently signed an agreement to acquire AssetTrackr, a start-up FMS provider. Based in Bangalore, AssetTrackr is differentiated through advanced cloud-based FMS technologies, which superbly complement telematics products recently launched by WABCO INDIA. The combination of AssetTrackr and WABCO INDIA will accelerate the development of innovative solutions that improve the performance and safety of local commercial vehicle fleets. In addition, this acquisition will bring expertise and talent to further WABCO as a key innovator of FMS solutions globally.

WABCO reported in Q2 2017 that it signed a strategic cooperation framework agreement with FAW Jiefang Automotive Company, a major manufacturer of light-, medium- and heavy-duty trucks in China. WABCO and FAW Jiefang will team up to enhance the safety and efficiency of commercial vehicles and fleet operators in China by advancing braking systems, chassis components and other technologies. Building on its more than 20-year supply relationship, WABCO will provide FAW Jiefang with industry-leading and cost-effective technologies as well as product development expertise.

In Q2 2017, WABCO was distinguished by CLEPA (European Association of Automotive Suppliers) with two prestigious Innovation Awards 2017. One award honors WABCO and ZF for their joint development of Evasive Maneuver Assist (EMA), a breakthrough collision avoidance system for commercial vehicles. The EMA prototype combines WABCO’s world-class braking, stability and vehicle dynamics control systems on trucks and trailers with ZF’s top active steering technology. EMA engages to help the driver to safely steer around an obstructing vehicle and to bring truck and trailer to a complete and safe stop. WABCO was also recognized by CLEPA for its OptiFlow™ AutoTail, the latest addition to WABCO’s industry-leading portfolio of aerodynamic solutions for trailers. This state-of-the-art device helps to reduce fuel consumption and emissions of commercial vehicles.

Recently, WABCO was recognized by ReMaTec, known as the leading platform for remanufacturing, with the Remanufacturer of the Year 2017 award. This award is the most prestigious in the global remanufacturing industry. WABCO Reman Solutions, founded in 2010, advances operational efficiency and environmental sustainability in the automotive, commercial vehicle and related industries by restoring worn or non-functional components to “like-new” or “better-than-new” condition, offering solutions that are fully warranted in performance and quality. WABCO Reman Solutions features a broad portfolio of remanufactured parts – including mechanical, mechatronic, electronic and hydraulic products – through five production facilities in the U.S., Mexico, Brazil, Poland and China.

WABCO INDIA has been recently honored with the 2016 Total Productive Maintenance (TPM) Excellence Award from the Japan Institute of Plant Maintenance. WABCO INDIA received this prestigious award for its Mahindra World City lean manufacturing facility in Chennai, India. This plant is a world-class export hub serving major commercial vehicle manufacturers and passenger car makers globally. The TPM Excellence Award rigorously evaluates a company-wide commitment to sustain superlative production capabilities and world-class quality standards. In India, where WABCO fully leverages its five world-class factories, the company produces frugally-engineered, high-quality and cost-effective technologies to meet local customers’ requirements and to export to customers in the Americas, Europe and Asia.

go here WABCO Raises Full Year 2017 Guidance

Considering the latest developments in market dynamics, our tax environment and foreign exchange movements, WABCO raises its previously disclosed guidance for full year 2017.

“We expect to benefit from favorable market evolution and continued market outperformance, which propel top-line growth and enhance bottom-line results,” said Esculier. “However, we see WABCO’s operating margin being affected by transactional foreign exchange headwind.”

anri okita snapchat WABCO Conference Call Today

Jacques Esculier, Chairman and Chief Executive Officer, and Prashanth Mahendra-Rajah, Chief Financial Officer, will discuss WABCO’s results and outlook on a conference call at 9:00 a.m. Eastern Time today. It will be webcast at where the press release and financial information will be available under “WABCO Q2 2017 Results.”

The call is also accessible by telephone in listen only mode. Dial-in number is +1 408 940 3818 and U.S. toll-free dial-in number is 877 844 0834.

A replay of the call will be available from 12:00 Noon Eastern Time on July 20 until 12:00 Noon Eastern Time on July 27, 2017. Replay dial-in number is +1 404 537 3406 and U.S. toll-free dial-in number is 855 859 2056. Conference ID is 40864667.

click About WABCO

WABCO (NYSE: WBC) is a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles. Founded nearly 150 years ago, WABCO continues to pioneer breakthrough innovations for advanced driver assistance, braking, stability control, suspension, transmission automation and aerodynamics. Partnering with the transportation industry as it maps a route toward autonomous driving, WABCO also uniquely connects trucks, trailers, cargo, drivers, business partners and fleet operators through advanced fleet management systems and mobile solutions. For five consecutive years, Institutional Investor named WABCO among the “Top 3” in its sector for “Best CEO.” WABCO reported sales of $2.8 billion in 2016. Headquartered in Brussels, Belgium, WABCO has 13,000 employees in 40 countries. WABCO’s 2016 Annual Report is available For more information, visit WABCO Forward-Looking Statements

This document contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 that are based on management's good faith expectations and beliefs concerning future developments. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “strategies,” “prospects,” “intends,” “projects,” “estimates,” “plans,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward looking in nature and not historical facts. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the actual level of commercial vehicle production in our end markets, adverse developments in the business of our key customers, pricing changes to our supplies or products, our ability to successfully integrate any acquired businesses or our acquired businesses not performing as planned, our ability to mitigate any tax risks, including, but not limited to those risks associated with changes in legislation, tax audits and the loss of the benefits associated with our tax rulings and incentives in certain jurisdictions, and the other risks and uncertainties described in the “Risk Factors” section and the “Information Concerning Forward Looking Statements” section of WABCO’s Form 10-K, as well as in the “Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements” section of WABCO’s Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on company estimates. Non-GAAP Financial Measures

To facilitate the understanding of Q2 2017 results, several tables follow this news release. Sales, gross profit, operating expenses, and operating income, which are adjusted to exclude the effects of foreign exchange, as well as EBIT, are non-GAAP financial measures and are denoted by the word “adjusted” in the line item. Additionally, gross profit, operating expenses, operating income, operating margin, EBIT, tax rate, pre-tax income attributable to the company, net income attributable to the company, and net income attributable to the company per diluted share on a “performance basis” are non-GAAP financial measures that exclude items for separation, streamlining and acquisition, discrete and one-time tax items, and other items that management believes may mask the underlying operating results of the company, as applicable. These measures should be considered in addition to, not as a substitute for, GAAP measures. These measures may not be comparable to similar measures of other companies as not all companies calculate these measures in the same manner. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the company's business. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees.

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