- Delivered Full-Year Operating Cash Flow of Over $1.0
Billion
- Fourth Quarter Reported GAAP Earnings Per Share of $0.71;
Adjusted EPS of $1.04. Full-Year GAAP Earnings Per Share of $1.84;
Adjusted EPS of $4.17
- Fourth Quarter Reported GAAP and Adjusted Sales of $2.4
Billion; Full-Year GAAP sales of $8.2 billion; Full-Year Adjusted
Sales of $8.3 Billion
- Margin Expansion and Strong Cash Flow Expected in 2020
Following Successful Year of Integration
Wabtec Corporation (NYSE: WAB) today
reported strong results for the fourth quarter and full year 2019
and issued 2020 financial guidance.
Rafael Santana, Wabtec’s president and chief executive officer,
said: “Wabtec delivered strong results for the fourth quarter,
concluding a solid year for the company. While we faced increased
challenges in the North American freight market, the full year
results demonstrate the strength of our portfolio through increased
global scale, a more diversified business mix and significant
installed base.
“Our multi-year backlog, combined with growth opportunities in
services, transit and international markets puts Wabtec in a solid
position to manage through the current freight rail cycle. We
continue to make significant progress in our synergy and cost
initiatives and expect margin expansion in both segments in 2020.
We remain confident that we will exceed our synergy target of $250
million before 2022.”
2019 Financial Summary
In the fourth quarter of 2019, Wabtec had cash from operations
of $448 million, sales of $2.4 billion and GAAP earnings per
diluted share of $0.71. Adjusted earnings per diluted share were
$1.04 and included $0.06 for after-tax non-cash policy
harmonization and excluded after-tax expenses of $0.29 for
restructuring, transaction and litigation costs, offset by $0.02
from increased tax expense for non-deductible transaction costs
(see reconciliation table).
For the full year of 2019, Wabtec had cash from operations of
$1.0 billion, sales of $8.2 billion and GAAP earnings per diluted
share of $1.84. Adjusted earnings per diluted share were $4.17 and
included $0.39 for after-tax non-cash policy harmonization and
excluded after-tax expenses of $1.94 as follows: $0.79 for
one-time, non-cash purchase price accounting charges; $1.08 for
restructuring, transaction and litigation costs and $0.07 from
increased tax expense for non-deductible transaction costs (see
reconciliation table).
Backlog remains strong, despite a challenging market. At
December 31, Wabtec’s total, multi-year backlog was $22.4 billion,
and its 12-month backlog was $5.6 billion, which was higher than at
September 30 as increased OEM orders in both Freight and Transit
more than offset changes in foreign currency exchange rates.
2020 Financial Guidance
- Wabtec issued 2020 GAAP sales guidance of about $8.7 billion,
GAAP income from operations guidance of about $1.1 billion and GAAP
earnings per diluted share guidance to between $3.20 to $3.50.
Wabtec issued guidance for EBITDA, which Wabtec defines as income
from operations plus depreciation and amortization, of about $1.6
billion.
- Wabtec issued guidance for adjusted income from operations of
about $1.4 billion and adjusted EBITDA of about $1.6 billion.
Wabtec also issued 2020 guidance for adjusted earnings per diluted
share to between $4.50 to $4.80. The adjusted guidance excludes
estimated expenses for recurring purchase price accounting
amortization. Excluding these expenses, the company’s adjusted
operating margin target for the full year is about 16% and its
adjusted effective tax rate for the full year is expected to be
about 25.5%. With aggressive cost actions and synergies stemming
from the Wabtec and GE Transportation merger ahead of plan, we
expect to see a net synergy benefit of over $150 million in
2020.
- For full year 2020, Wabtec expects GAAP cash flow from
operations to be about $900 million and to include approximately
$100 million of cash outflows related to prior year restructuring
and litigation costs.
- Wabtec anticipates 2020 first quarter sales, adjusted net
income, adjusted EBITDA and adjusted earnings per diluted share to
be lower when compared to the remainder of 2020, in line with
expected first quarter seasonality and project scheduling, with
improvement expected through the rest of the year.
2019 Fourth Quarter Consolidated Results
- GAAP sales were $2.4 billion. The increase compared to the
year-ago quarter resulted mainly from sales from GE Transportation
and higher transit sales partially offset by lower sales in freight
components and unfavorable foreign exchange rates.
- Income from operations was $226 million (9.5% of GAAP sales)
and adjusted income from operations was $313 million (13.2% of
adjusted sales) which was negatively impacted by original equipment
(OE) mix and certain transit projects offset somewhat by timing of
policy harmonization and locomotive services. Adjusted income from
operations included $16 million for non-cash, accounting policy
harmonization but excluded pre-tax expense of $71 million for
restructuring, transaction, and litigation costs (see
reconciliation table).
- Net interest expense was $58 million, with adjusted net
interest expense of $55 million.
- Income tax expense was $38 million for an effective tax rate of
21.6%. Excluding the net tax benefit from restructuring,
transaction costs related to the GE Transportation merger and
litigation costs adjusted income tax expense was $63 million for an
adjusted effective tax rate of about 23.8%.
- Earnings per diluted share were $0.71 and adjusted earnings per
diluted share were $1.04 (see reconciliation table). Adjusted
earnings per diluted share included $0.06 for after-tax non-cash
policy harmonization and excluded after-tax expenses of $0.29 for
restructuring, transaction and litigation costs, offset by $0.02
from increased tax expense for non-deductible transaction costs
(see reconciliation table).
- In addition to the expenses noted above, the company also had
after-tax expense of $0.26 per diluted share for non-cash,
recurring purchase price accounting charges which is not added back
to adjusted earnings per diluted share.
- EBITDA, which Wabtec defines as income from operations plus
depreciation and amortization, was $337 million and adjusted EBITDA
was $424 million. Adjusted EBITDA included $16 million for policy
harmonization and excluded pre-tax expenses of $71 million for
restructuring, transaction and litigation costs (see reconciliation
table).
2019 Fourth Quarter Segment Results
- Freight segment sales of $1.7 billion increased by 296% from
the year-ago quarter or $1.2 billion; the increase resulted from
acquisitions of $1.3 billion which was partially offset by an
organic decrease of $22 million and unfavorable changes in foreign
currency exchange rates of $2 million. Freight segment organic
sales were negatively impacted by lower sales in freight car
components.
- Freight segment income from operations of $239 million (or
14.3% of segment sales) increased from the year-ago quarter by $164
million mainly as a result of acquisitions. Freight segment income
from operations was reduced by $31 million due to the policy
harmonization, restructuring, transaction and litigation expenses
noted. Excluding those items, Freight segment adjusted income from
operations as a percent of adjusted sales was 16.1%. Adjusted
Freight segment income from operations benefited from higher sales
of electronics offset by negative seasonality in services.
- Transit segment sales of $701 million increased by 1% from the
year-ago quarter or $5 million. The increase resulted from organic
sales growth of $19 million and acquisitions of $2 million, which
was partially offset by unfavorable changes in foreign currency
exchange rates of $16 million. Transit segment sales were
positively impacted by growth in aftermarket components.
- Transit segment income from operations of $39 million (or 5.6%
of segment sales) increased 7% from the year-ago quarter. Excluding
restructuring charges of $11 million, Transit segment adjusted
income from operations as a percent of sales was 7.1%. Adjusted
segment income from operations were impacted by lower margin
refurbishment projects, partially offset by better performance in
other Transit product areas.
2019 Fourth Quarter Cash Flow Summary
- The company generated cash from operations of $448 million for
the fourth quarter compared to cash from operations of $277 million
in the year-ago quarter, with the increase resulting from higher
financial results (net income plus net add-back for non-cash
transactions in earnings) and improved working capital performance.
At December 31, the company had cash and cash equivalents of $604
million and total debt of $4.4 billion. Total debt was about $316
million lower than at September 30 due to repayment of debt during
the quarter.
Conference Call Information
Wabtec will host a call with analysts and investors at 10 a.m.,
ET, today. To listen via webcast, go to Wabtec’s new website at
www.WabtecCorp.com and click on “Events & Presentations” in the
“Investor Relations” section. Also, an audio replay of the call
will be available by calling 1-877-344-7529 or 1-412-317-0088
(access code: 10138395).
About Wabtec Corporation
Wabtec Corporation is a leading global provider of equipment,
systems, digital solutions and value-added services for freight and
transit rail. Drawing on nearly four centuries of collective
experience across Wabtec, GE Transportation and Faiveley Transport,
the company has unmatched digital expertise, technological
innovation, and world-class manufacturing and services, enabling
the digital-rail-and-transit ecosystems. Wabtec is focused on
performance that drives progress, creating transportation solutions
that move and improve the world. The freight portfolio features a
comprehensive line of locomotives, software applications and a
broad selection of mission-critical controls systems, including
Positive Train Control (PTC). The transit portfolio provides highly
engineered systems and services to virtually every major rail
transit system around the world, supplying an integrated series of
components for buses and all train-related market segments that
deliver safety, efficiency and passenger comfort. Along with its
industry-leading portfolio of products and solutions for the rail
and transit industries, Wabtec is a leader in mining, marine, and
industrial solutions. Based in Pittsburgh, PA, Wabtec has
approximately 27,000 employees in facilities throughout the world.
Visit: www.WabtecCorp.com
Information about non-GAAP Financial Information and
Forward-Looking Statements
Wabtec’s earnings release and 2020 financial guidance mention
certain non-GAAP financial performance measures, including adjusted
sales, adjusted operating margin, EBITDA, adjusted EBITDA, adjusted
effective tax rate, adjusted income from operations, adjusted
interest and other expense and adjusted earnings per diluted share.
Wabtec defines EBITDA as income from operations plus depreciation
and amortization. While Wabtec believes these are useful
supplemental measures for investors, they are not presented in
accordance with GAAP. Investors should not consider non-GAAP
measures in isolation or as a substitute for net income, cash flows
from operations, or any other items calculated in accordance with
GAAP. In addition, the non-GAAP financial measures included in this
presentation have inherent material limitations as performance
measures because they add back certain expenses incurred by the
company to GAAP financial measures, resulting in those expenses not
being taken into account in the applicable non-GAAP financial
measure. Because not all companies use identical calculations,
Wabtec’s presentation of non-GAAP financial measures may not be
comparable to other similarly titled measures of other companies.
Included in this release are reconciliation tables that provide
details about how adjusted results relate to GAAP results.
This communication contains “forward-looking” statements as that
term is defined in Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended by the Private Securities Litigation Reform Act of 1995,
including statements regarding the acquisition by Wabtec of GE
Transportation (the “GE Transportation merger”) and statements
regarding Wabtec’s expectations about future sales and earnings.
All statements, other than historical facts, including statements
regarding the expected benefits of the GE Transportation merger,
including anticipated synergy benefits; statements regarding
Wabtec’s plans, objectives, expectations and intentions; legal,
economic and regulatory conditions; and any assumptions underlying
any of the foregoing, are forward-looking statements.
Forward-looking statements concern future circumstances and results
and other statements that are not historical facts and are
sometimes identified by the words “may,” “will,” “should,”
“potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,”
“estimate,” “overestimate,” “underestimate,” “believe,” “could,”
“project,” “predict,” “continue,” “target” or other similar words
or expressions. Forward-looking statements are based upon current
plans, estimates and expectations that are subject to risks,
uncertainties and assumptions. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or anticipated by such forward-looking statements. The inclusion of
such statements should not be regarded as a representation that
such plans, estimates or expectations will be achieved. Important
factors that could cause actual results to differ materially from
such plans, estimates or expectations include, among others, (1)
unexpected costs, charges or expenses resulting from the GE
Transportation merger; (2) uncertainty of Wabtec’s expected
financial performance; (3) failure to realize the anticipated
benefits of the GE Transportation merger, including as a result of
integrating GE Transportation into Wabtec; (4) Wabtec’s ability to
implement its business strategy; (5) difficulties and delays in
achieving revenue and cost synergies; (6) inability to retain and
hire key personnel; (7) evolving legal, regulatory and tax regimes;
(8) changes in general economic and/or industry specific
conditions, including the impacts of tax and tariff programs,
industry consolidation and changes in the financial condition or
operating strategies of our customers; (9) changes in the expected
timing of projects; (10) a decrease in freight or passenger rail
traffic; (11) an increase in manufacturing costs; (12) actions by
third parties, including government agencies; and (13) other risk
factors as detailed from time to time in Wabtec’s reports filed
with the SEC, including Wabtec’s annual report on Form 10-K,
periodic quarterly reports on Form 10-Q, periodic current reports
on Form 8-K and other documents filed with the SEC. The foregoing
list of important factors is not exclusive. Any forward-looking
statements speak only as of the date of this communication. Wabtec
does not undertake any obligation to update any forward-looking
statements, whether as a result of new information or development,
future events or otherwise, except as required by law. Readers are
cautioned not to place undue reliance on any of these
forward-looking statements
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE
AND TWELVE MONTHS ENDED DECEMBER 31, 2019 AND 2018 (AMOUNTS
IN MILLIONS EXCEPT PER SHARE DATA) (UNAUDITED)
Fourth Fourth For the For the
Quarter Quarter Twelve Months Twelve Months
2019
2018
2019
2018
Net sales
$
2,368.4
$
1,117.8
$
8,200.0
$
4,363.5
Cost of sales
(1,693.5
)
(820.8
)
(5,922.0
)
(3,129.6
)
Gross profit
674.9
297.0
2,278.0
1,233.9
Gross profit as a % of Net Sales
28.5
%
26.6
%
27.8
%
28.3
%
Selling, general and administrative expenses
(323.7
)
(168.0
)
(1,166.6
)
(633.2
)
Engineering expenses
(59.6
)
(25.9
)
(209.9
)
(87.5
)
Amortization expense
(65.5
)
(9.7
)
(238.4
)
(39.8
)
Total operating expenses
(448.8
)
(203.6
)
(1,614.9
)
(760.5
)
Operating expenses as a % of Net Sales
18.9
%
18.2
%
19.7
%
17.4
%
Income from operations
226.1
93.4
663.1
473.4
Income from operations as a % of Net Sales
9.5
%
8.4
%
8.1
%
10.8
%
Interest expense, net
(58.3
)
(36.3
)
(219.1
)
(112.2
)
Other income (expense), net
6.9
0.4
2.8
6.4
Income from operations before income taxes
174.7
57.5
446.8
367.6
Income tax expense
(37.7
)
(22.7
)
(120.3
)
(75.9
)
Effective tax rate
21.6
%
39.5
%
26.9
%
20.6
%
Net income
137.0
34.8
326.5
291.7
Less: Net loss attributable to noncontrolling
interest
(1.3
)
(0.5
)
0.2
3.2
Net income attributable to Wabtec shareholders
$
135.7
$
34.3
$
326.7
$
294.9
Earnings Per Common Share Basic
Net income attributable to Wabtec shareholders
$
0.71
$
0.36
$
1.91
$
3.06
Diluted Net income attributable to
Wabtec shareholders
$
0.71
$
0.35
$
1.84
$
3.05
Basic
191.1
96.3
170.5
96.0
Diluted
191.6
96.7
177.3
96.5
Segment Information Freight Net Sales
$
1,667.1
$
421.6
$
5,441.4
$
1,766.4
Freight Income from Operations
$
239.2
$
75.2
$
642.9
$
334.3
Freight Operating Margin
14.3
%
17.8
%
11.8
%
18.9
%
Transit Net Sales
$
701.3
$
696.2
$
2,758.6
$
2,597.1
Transit Income from Operations
$
39.0
$
36.4
$
214.4
$
192.5
Transit Operating Margin
5.6
%
5.2
%
7.8
%
7.4
%
Backlog Information (Note: 12-month is a sub-set
of total) December 31,
2019 September 30,
2019 Freight Total
$
18,945.3
$
18,571.5
Transit Total
3,486.4
3,359.0
Wabtec Total
$
22,431.7
$
21,930.5
Freight 12-Month
$
3,911.0
$
4,133.3
Transit 12-Month
1,692.8
1,594.0
Wabtec 12-Month
$
5,603.8
$
5,727.3
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, 2019
December 31, 2018
In millions Cash and cash
equivalents
$
604.2
$
580.9
Restricted cash
-
1,761.4
Receivables, net
1,663.9
1,146.8
Inventories
1,773.1
844.9
Current assets - other
150.9
115.6
Total current assets
4,192.1
4,449.6
Property, plant and equipment, net
1,655.8
563.8
Goodwill
8,360.6
2,396.5
Other intangibles, net
4,104.0
1,129.9
Other long term assets
573.7
109.4
Total assets
$
18,886.2
$
8,649.2
Current liabilities
$
3,258.0
$
1,646.6
Long-term debt
4,333.6
3,792.8
Long-term liabilities - other
1,301.0
340.7
Total liabilities
8,892.6
5,780.1
Shareholders' equity
9,956.5
2,865.2
Non-controlling interest
37.1
3.9
Total shareholders' equity
9,993.6
2,869.1
Total Liabilities and Shareholders' Equity
$
18,886.2
$
8,649.2
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Twelve Months Ended December 31,
2019
2018
In millions Net cash provided
by operating activities
$
1,015.5
$
314.7
Net cash used for investing activities
(3,177.8
)
(147.3
)
Net cash provided by financing activities
461.5
1,978.1
Effect of changes in currency exchange rates
(37.3
)
(36.6
)
(Decrease) increase in cash
(1,738.1
)
2,108.9
Cash, cash equivalents, and restricted cash, beginning of period
2,342.3
233.4
Cash, cash equivalents, and restricted cash, end of period
$
604.2
$
2,342.3
Set forth below is the calculation of the non-GAAP performance
measures included in this press release. We believe that
these measures provide useful supplemental information to assess
our operating performance and to evaluate period-to-period
comparisons. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, Wabtec's reported
results prepared in accordance with GAAP.
Wabtec
Corporation
Reconciliation of Reported Results
to Adjusted Results (in millions) Fourth
Quarter 2019 Actual Results Gross
Operating Income from Interest &
Minority Wabtec Net Sales Profit Expenses Operations Other
Exp Tax
Net Income Interest Net
Income EPS
Reported Results
$
2,368.4
$
674.9
$
(448.8
)
$
226.1
$
(51.4
)
$
(37.7
)
$
137.0
$
(1.3
)
$
135.7
$
0.71
Restructuring, Transaction, &
Litigation costs
-
9.9
61.1
71.0
3.5
(18.0
)
56.5
-
56.5
$
0.29
Policy Harmonization
8.0
6.6
9.0
15.6
-
(3.8
)
11.8
-
11.8
$
0.06
Tax on Transaction Costs
-
-
-
-
-
(3.5
)
(3.5
)
-
(3.5
)
$
(0.02
)
Adjusted Results
$
2,376.4
$
691.4
$
(378.7
)
$
312.7
$
(47.9
)
$
(63.0
)
$
201.8
$
(1.3
)
$
200.5
$
1.04
Fully Diluted Shares Outstanding
191.6
Wabtec Corporation
Reconciliation of Reported Results to Adjusted Results
(in millions) Year-to-Date 2019 Actual Results
Gross Operating Income from
Interest & Minority Wabtec
Net Sales
Profit Expenses Operations Other
Exp Tax
Net Income Interest Net
Income EPS
Reported Results
$
8,200.0
$
2,278.0
$
(1,614.9
)
$
663.1
$
(216.3
)
$
(120.3
)
$
326.5
$
0.2
$
326.7
$
1.84
Restructuring, Transaction, &
Litigation costs
-
38.3
191.5
229.8
25.0
(61.6
)
193.2
-
193.2
$
1.08
One-time PPA
-
185.0
-
185.0
-
(44.8
)
140.2
-
140.2
$
0.79
Policy Harmonization
123.0
65.6
26.0
91.6
-
(22.2
)
69.4
-
69.4
$
0.39
Tax on Transaction Costs
-
-
-
-
-
12.5
12.5
-
12.5
$
0.07
Adjusted Results
$
8,323.0
$
2,566.9
$
(1,397.4
)
$
1,169.5
$
(191.3
)
$
(236.4
)
$
741.8
$
0.2
$
742.0
$
4.17
Fully Diluted Shares Outstanding
177.3
Set forth below is the calculation of the non-GAAP
performance measures included in this press release. We
believe that these measures provide useful supplemental information
to assess our operating performance and to evaluate
period-to-period comparisons. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for,
Wabtec's reported results prepared in accordance with GAAP.
Wabtec Corporation
2019 Q4 EBITDA Reconciliation
(in millions) EBITDA (Income from Income
from Operations plus Depreciation Operations Depreciation Amortization &
Amortization) Consolidated Q4 Actual As
Reported
$
226.1
$
45.3
$
65.5
$
336.9
Restructuring, Transaction, &
Litigation costs
71.0
-
-
71.0
One-time PPA Charges
-
-
-
-
Policy Harmonization
15.6
-
-
15.6
Adjusted Results
$
312.7
$
45.3
$
65.5
$
423.5
Wabtec Corporation
2019 YTD EBITDA
Reconciliation (in millions) EBITDA (Income
from Income from Operations plus
Depreciation Operations Depreciation Amortization &
Amortization) Consolidated YTD Actual
As Reported
$
663.1
$
157.8
$
238.4
$
1,059.3
Restructuring, Transaction, &
Litigation costs
229.8
-
-
229.8
One-time PPA Charges
185.0
-
-
185.0
Policy Harmonization
91.6
-
-
91.6
Adjusted Results
$
1,169.5
$
157.8
$
238.4
$
1,565.7
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION NET SALES
BY PRODUCT LINE In millions
2019
First Second Third Fourth
Quarter Quarter Quarter Quarter Full
Year Freight Segment Equipment
$ 267.1
$ 531.3
$ 263.3
$ 638.0
$ 1,699.7
Components
295.2
279.5
248.7
250.1
1,073.5
Digital Electronics
121.8
159.0
185.5
210.8
677.1
Services
231.4
556.5
635.0
568.2
1,991.1
Total Freight Segment
915.5
1,526.3
1,332.5
1,667.1
5,441.4
Transit Segment Original Equipment
Manufacturer
327.3
335.7
309.8
313.8
1,286.6
Aftermarket
350.8
374.3
359.4
387.5
1,472.0
Total Transit Segment
678.1
710.0
669.2
701.3
2,758.6
2018
First Second Third Fourth
Quarter Quarter Quarter Quarter Full
Year Freight Segment Equipment
$
-
$
-
$
-
$
-
$
-
Components
294.2
302.1
290.5
282.3
1,169.1
Digital Electronics
110.2
130.3
126.0
107.6
474.1
Services
30.2
30.4
30.9
31.7
123.2
Total Freight Segment
434.6
462.8
447.4
421.6
1,766.4
Transit Segment Original Equipment
Manufacturer
272.8
298.9
300.0
322.3
1,194.0
Aftermarket
348.8
350.0
330.4
373.9
1,403.1
Total Transit Segment
621.6
648.9
630.4
696.2
2,597.1
WESTINGHOUSE AIR BRAKE
TECHNOLOGIES CORPORATION
SEGMENT FINANCIAL
INFORMATION
Initiatives to integrate GE Transportation operations into
Wabtec including recent restructuring programs announced in late
2019 resulted in changes to the Company's organizational structure
and the financial reporting utilized by the Company's chief
operating decision maker to assess performance and allocate
resources; as a result, certain asset groups were reorganized from
Freight to Transit and vice versa. The composition of the
Company's reportable segments was changed effective in the fourth
quarter of 2019. The changes to the asset groups comprising
the Freight and Transit segments have been reflected through
retrospective revision of prior period segment information.
In millions 2019 - Freight
Segment First Second Third
Fourth
Quarter
Quarter Quarter Quarter Full
Year Net sales
$
915.5
$
1,526.3
$
1,332.5
$
1,667.1
$
5,441.4
Cost of sales
(700.5
)
(1,101.4
)
(905.2
)
(1,152.9
)
(3,860.0
)
Gross profit ($)
215.0
424.9
427.3
514.2
1,581.4
Gross profit (%)
23.5
%
27.8
%
32.1
%
30.8
%
29.1
%
Operating expense
(134.1
)
(257.4
)
(272.0
)
(275.0
)
(938.5
)
Income from operations ($)
80.9
167.5
155.3
239.2
642.9
Income from operations (%)
8.8
%
11.0
%
11.7
%
14.3
%
11.8
%
2018 - Freight Segment First
Second Third Fourth
Quarter Quarter Quarter Quarter Full
Year Net sales
$
434.6
$
462.8
$
447.4
$
421.6
$
1,766.4
Cost of sales
(294.6
)
(313.6
)
(303.1
)
(288.5
)
(1,199.8
)
Gross profit ($)
140.0
149.2
144.3
133.1
566.6
Gross profit (%)
32.2
%
32.2
%
32.3
%
31.6
%
32.1
%
Operating expense
(58.6
)
(57.9
)
(57.9
)
(57.9
)
(232.3
)
Income from operations ($)
81.4
91.3
86.4
75.2
334.3
Income from operation (%)
18.7
%
19.7
%
19.3
%
17.8
%
18.9
%
WESTINGHOUSE AIR BRAKE
TECHNOLOGIES CORPORATION
SEGMENT FINANCIAL
INFORMATION
Initiatives to integrate GE Transportation operations into
Wabtec including recent restructuring programs announced in late
2019 resulted in changes to the Company's organizational structure
and the financial reporting utilized by the Company's chief
operating decision maker to assess performance and allocate
resources; as a result, certain asset groups were reorganized from
Freight to Transit and vice versa. The composition of the
Company's reportable segments was changed effective in the fourth
quarter of 2019. The changes to the asset groups comprising
the Freight and Transit segments have been reflected through
retrospective revision of prior period segment information.
In millions 2019 - Transit
Segment First Second Third
Fourth
Quarter
Quarter Quarter Quarter Full
Year Net sales
$
678.1
$
710.0
$
669.2
$
701.3
$
2,758.6
Cost of sales
(504.1
)
(520.2
)
(497.1
)
(540.6
)
(2,062.0
)
Gross profit ($)
174.0
189.8
172.1
160.7
696.6
Gross profit (%)
25.7
%
26.7
%
25.7
%
22.9
%
25.3
%
Operating expense
(114.1
)
(127.2
)
(119.2
)
(121.7
)
(482.2
)
Income from operations ($)
59.9
62.6
52.9
39.0
214.4
Income from operations (%)
8.8
%
8.8
%
7.9
%
5.6
%
7.8
%
2018 - Transit Segment First
Second Third Fourth
Quarter Quarter Quarter Quarter Full
Year Net sales
$
621.6
$
648.9
$
630.4
$
696.2
$
2,597.1
Cost of sales
(450.7
)
(474.1
)
(472.7
)
(532.3
)
(1,929.8
)
Gross profit ($)
170.9
174.8
157.7
163.9
667.3
Gross profit (%)
27.5
%
26.9
%
25.0
%
23.5
%
25.7
%
Operating expense
(112.4
)
(126.8
)
(108.1
)
(127.5
)
(474.8
)
Income from operations ($)
58.5
48.0
49.6
36.4
192.5
Income from operations (%)
9.4
%
7.4
%
7.9
%
5.2
%
7.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200218005400/en/
Wabtec Investor Kristine Kubacki, CFA /
Kristine.Kubacki@wabtec.com / 412-450-2033
Wabtec Media Deia Campanelli / Deia.Campanelli@wabtec.com
/ 773-297-0482
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