WABCO Holdings Inc.
) posted a 10.7% decrease in earnings per share to $1.08 in the
fourth quarter of 2012 from $1.21 in the corresponding quarter
last year. However, profits surpassed the Zacks Consensus
Estimate by 13 cents. In absolute terms, profits declined 13.8%
to $69.6 million from $80.7 million in the year-ago quarter.
Revenues for the quarter fell 11.2% to $596.5 million from $672.0
million in the year-ago quarter. However, revenues were ahead of
the Zacks Consensus Estimate of $591.0 million.
The year-over-year fall in revenues was due to the uncertainty
and instability in the global markets, which resulted in a 12%
decline in global truck and bus production. Meanwhile, the
company reported a 9% increase in aftermarket sales in the
Operating income declined 17.1% to $75.0 million or 12.6% of net
sales from $90.5 million or 13.5% in the fourth quarter of 2011.
WABCO reported a profit of $291.6 million or $4.46 per share in
2012, down from $325.7 million or $4.73 a year ago. The company's
revenues for the year dropped 11.3% to $2.5 billion, owing to the
weak market conditions.
The company reported a 5% increase in global aftermarket sales in
2012. Operating income decreased 10.5% to $335.6 million or 13.5%
of net sales from $375.1 million or 13.4% in 2011.
WABCO had cash and cash equivalents of $175.0 million as of Dec
31, 2012, up from $102.4 million as of Dec 31, 2011. The company
has no long-term debt at the end of 2012.
For full year 2012, the company's operating cash flow increased
to $358.3 million from $332.0 million in the prior year. Capital
expenditures (net) declined to $91.7 million from $98.3 million a
For 2013, WABCO expects annual sales increase between 2% and 7%
in local currencies. Operating margin is projected between 12.3%
and 13.3% for the year. This will lead to earning per share from
$4.30 to $4.80 based on performance.
WABCO is the world's leading providers of electronic braking,
stability, suspension and transmission control systems for heavy
duty commercial vehicles. Currently, it retains a Zacks Rank #4
Strattec Security Corporation
Magna International Inc.
) are performing well in the same industry where WABCO operates.
Oshkosh and Strattec Security are Zacks Rank #1 (Strong Buy)
stocks while Magna International carries a Zacks Rank #2
MAGNA INTL CL A (MGA): Free Stock Analysis
OSHKOSH CORP (OSK): Free Stock Analysis
STRATTEC SEC CP (STRT): Free Stock Analysis
WABCO HOLDINGS (WBC): Free Stock Analysis
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