Wabtec Reports 4Q And Full Year Results; 2009 Cash From Operations Of $161 Million, Exceeding Net Income For 12th Straight Year; Affirms 2010 Guidance

WILMERDING, Pa., Feb. 23 /PRNewswire-FirstCall/ -- Wabtec Corporation (NYSE: WAB) today reported its 2009 fourth quarter and full-year results, including the following:

• In the fourth quarter, earnings per diluted share were 56 cents, excluding a previously announced charge of 6 cents per diluted share for an arbitration ruling.  Including the charge, earnings per diluted share were 50 cents.  Sales decreased to $359 million, as increased sales in the Transit Group were offset by lower sales in the Freight Group.  Compared to the third quarter of 2009, sales were 9 percent higher, with both groups showing an increase.
• During the fourth quarter, Wabtec completed the acquisition of Unifin International, a leading manufacturer of cooling systems and related equipment for the power generation and transmission industry, for $93 million.
• For the full year, Wabtec had earnings per diluted share of $2.39, on sales of $1.4 billion.  The company generated strong cash flow from operations of $161 million, or 11.5 percent of sales, marking the 12th consecutive year that Wabtec's cash flow from operations exceeded net income.  At year-end, the company had cash of $189 million and debt of $392 million.  With its strong balance sheet and cash flow, Wabtec believes it has ample capacity to invest in future growth opportunities.
• During the year, Wabtec repurchased 669,700 shares of company stock for $20 million.

Also today, Wabtec affirmed its 2010 earnings per diluted share guidance of $2.35-$2.50, with revenues expected to be flat to slightly up.

Albert J. Neupaver, Wabtec's president and chief executive officer, said:  "Faced with very challenging market conditions in 2009, the company performed well, generating strong cash flow from operations and improving margins, after adjusting for one-time items.  These results were due to our diversified business model and the hard work of employees at all levels of the company.  Market conditions will continue to be challenging in 2010, but we expect to benefit from our 2009 restructuring actions and other growth initiatives.  We are optimistic about the company's future growth opportunities around the world, given our strong balance sheet, diversified business model and continued application of the Wabtec Performance System principles."

Wabtec Corporation (www.wabtec.com) is a global provider of value-added, technology-based products and services mainly for the freight rail and passenger transit industry.

This release contains forward-looking statements, such as statements regarding the company's expectations about future earnings.  Actual results could differ materially from the results suggested in any forward-looking statement.  Factors that could cause or contribute to these material differences include, but are not limited to, an economic slowdown in the markets we serve; a decrease in freight or passenger rail traffic; an increase in manufacturing costs; and other factors contained in the company's filings with the Securities and Exchange Commission.  The company assumes no obligation to update these statements or advise of changes in the assumptions on which they are based.

Wabtec will host a call with analysts and investors at 10 a.m., eastern time, today.  To listen via webcast, go to www.wabtec.com and click on "Webcasts" in the "Investor Relations" section.

Set forth below is the calculation of the non-GAAP performance measure included in this press release.  Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Wabtec's reported results prepared in accordance with United States GAAP.

    
    
    Reconciliation of fourth quarter earnings per diluted share
    Net income per diluted share                       50 cents
    Add back charge for arbitration ruling              6 cents
                                                        -------
    Net income per diluted share excluding charge      56 cents

    
    
                                WABTEC CORPORATION                           
                  CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS             
         FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2009 AND 2008    
                   (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)              
                                   (UNAUDITED)                               
                                                                             
                                                                             
                                   Fourth    Fourth     For the     For the  
                                   Quarter   Quarter      Year        Year  
                                    2009      2008        2009        2008 
                                    ----      ----        ----        ---- 
                                                                           
    Net sales                   $359,188  $405,211  $1,401,616  $1,574,749 
    Cost of sales               (259,526) (299,415) (1,008,290) (1,147,563)
                                --------  --------  ----------  ---------- 
      Gross profit                99,662   105,796     393,326     427,186 
      Gross profit as a % of Net                                          
       Sales                        27.7%     26.1%       28.1%       27.1%
                                                                           
    Selling, general and                                                   
     administrative expenses     (43,171)  (44,275)   (160,998)   (170,597)
    Engineering expenses         (10,966)   (9,656)    (42,447)    (38,981)
    Amortization expense          (3,727)   (1,611)     (9,849)     (5,092)
                                  ------    ------      ------      ------ 
      Total operating expenses   (57,864)  (55,542)   (213,294)   (214,670)
       Operating expenses as a
        % of Net Sales              16.1%     13.7%       15.2%       13.6%
                                                                           
         Income from operations   41,798    50,254     180,032     212,516 
         Income from operations
          as a % of Net Sales       11.6%     12.4%       12.8%       13.5%
                                                                           
    Interest (expense) income,                                             
     net                          (4,526)   (3,791)    (16,674)     (8,508)
    Other (expense) income, net     (648)    1,471           1         292 
                                    ----     -----        ----        ---- 
         Income from continuing                                            
          operations before income                                         
          taxes                   36,624    47,934     163,359     204,300 
                                                                           
    Income tax expense           (12,419)  (16,825)    (48,304)    (73,746)
                                 -------   -------     -------     ------- 
          Effective tax rate        33.9%     35.1%       29.6%       36.1%
                                                                           
         Income from continuing                                            
          operations              24,205    31,109     115,055     130,554 
                                                                           
    Discontinued operations                                                
         Income (loss) from                                                
          discontinued operations
          (net of tax)                 -         -           -          (3)
                                 -------   -------     -------     ------- 
         Net income              $24,205   $31,109    $115,055    $130,551 
                                 =======   =======    ========    ======== 
      
    
                                                                         
      Earnings Per Common Share  
                                              
                Basic                                                      
         Income from continuing                                            
          operations               $0.51     $0.64       $2.41       $2.69 
         Income from discontinued                                          
          operations                   -         -          $-          $- 
         Net income                $0.51     $0.64       $2.41       $2.69 
                                                                           
               Diluted                                                     
         Income from continuing                                            
          operations               $0.50     $0.64       $2.39       $2.66 
         Income from discontinued                                          
          operations                   -         -           -          $- 
         Net income                $0.50     $0.64       $2.39       $2.66 
                                                                           
    Weighted average shares
     outstanding                                    
           Basic                  47,331    48,034      47,499      48,232 
                                  ======    ======      ======      ====== 
           Diluted                47,803    48,640      47,977      48,847 
                                  ======    ======      ======      ====== 
                                                                           
           Sales by Segment                                                
    Freight Group               $147,920  $198,850    $588,399    $773,523 
    Transit Group                211,268   206,361     813,217     801,226 
                                 -------   -------     -------     ------- 
              Total             $359,188  $405,211  $1,401,616  $1,574,749 
                                ========  ========  ==========  ========== 
    
    
    

SOURCE Wabtec Corporation