WABCO Holdings – WBC – Q2 2012 delivered performance operating margin at 14.6 percent, a new quarterly record

WABCO Holdings Inc. (NYSE: WBC), a global technology leader and tier-one supplier to the commercial vehicle industry, today reported Q2 2012 sales of $635 million, down 4.5 percent in local currencies from a year ago and down 13.9 percent on a U.S. GAAP basis, reflecting anticipated market slowdown.

• WBC – Q2 2012 sales of $635 million, down 4.5 percent in local currencies and down 13.9 percent on a U.S. GAAP basis from a year ago
• WBC – Q2 2012 operating margin of 14.6 percent on a performance basis, up from 13.6 percent a year ago; operating margin of 14.6 percent on a U.S. GAAP basis, up from 13.4 percent a year ago
• Q2 2012 diluted EPS of $1.19 on a performance basis, down from $1.23 a year ago; diluted EPS of $1.15 on a U.S. GAAP basis, down from $1.26 a year ago
• In Q2 2012, WABCO generated $75.2 million in net cash from operating activities and $56.6 million of free cash flow, excluding payments of $3.1 million for streamlining and separation activities, resulting in a conversion rate of 72 percent of performance net income attributable to the company, bringing year-to-date 2012 conversion rate to 87 percent
• Maintains previously disclosed guidance for full year 2012 sales growth to range between negative 2 percent and positive 3 percent in local currencies and full year 2012 diluted EPS on a performance basis to range from $4.30 to $4.80, while full year 2012 diluted EPS on a U.S. GAAP basis is updated to now range from $4.42 to $4.92, up from its previous guidance to range from $4.32 to $4.82

“As we predicted, Q2 2012 continued to show 2012 as a year of transition involving global slowdown of truck and bus production in uncertain and unstable markets across all regions. WABCO’s sales declined by 4.5 percent in local currencies during Q2 2012, reflecting the commercial vehicle industry’s overall slump and, in particular, a year-on-year contraction of 7 percent in new truck and bus builds in Europe, our largest market,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer. “Nonetheless, in Q2 2012 we delivered performance operating margin at 14.6 percent, a new quarterly record and further evidence of WABCO’s continued ability to deliver superior profitability.”

“China, India and Brazil accounted for more than half of the world’s truck and bus production in Q2 2012, and we continued to outperform these emerging markets by increasing adoption of our technologies, resulting in higher value of WABCO content per vehicle,” said Esculier.

About WABCO – WBC

WABCO (WBC) is a leading global supplier of technologies and control systems for the safety and efficiency of commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability and transmission automation systems supplied to the world’s leading commercial truck, trailer and bus manufacturers. With sales of $2.8 billion in 2011, WABCO is headquartered in Brussels, Belgium.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.