Wabtec Corporation has reported results for the 2016 third quarter, including sales of $676 million. Changes in foreign exchange rates reduced total net sales by $18 million compared to last year’s third quarter.
Higher sales in the Transit Group were more than offset by lower sales in the Freight Group, which were mainly affected by lower revenues from train control-related equipment and services, a decrease in rail traffic volumes, and lower industry deliveries of new freight cars and locomotives.
“Our transit business continues to perform well, while the freight markets remain challenging due to overall rail industry conditions and the sluggish global economy,” said Raymond T. Betler, Wabtec president and CEO.
Income from operations was 17.8 percent of sales, for a total of $120 million. Adjusted income from operations was $123 million, or 18.3 percent of sales, which excluded expenses of about $3.2 million related to the pending acquisition of Faiveley Transport.
Earnings per diluted share were $.91 for the quarter. Excluding expenses of approximately 3 cents per diluted share due to the expenses for the acquisition of Faiveley Transport, adjusted earnings per diluted share were $.94.
“We have continued to focus on controlling what we can by aggressively reducing costs, generating cash and investing in our growth opportunities, including acquisitions,” Betler added. “At the same time, we are progressing toward completion of the Faiveley Transport acquisition and remain excited by its growth and improvement opportunities.”
Wabtec, basing its observations on its year-to-date results and outlook for the rest of the year, has updated its full-year 2016 earnings guidance for earnings per diluted share to be $4.00 to $4.04, with revenues now expected to be down approximately 12 percent compared to 2015. This guidance does not include costs for restructuring activities or expenses related to the Faiveley Transport acquisition.