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Rail News: Financials

Wabtec boosts sales, income and earnings in third quarter

Yesterday, Wabtec Corp. reported third-quarter earnings per diluted share — excluding restructuring expenses — of 44 cents, a more than 40 percent increase compared with third-quarter 2005 earnings and the company’s 10th consecutive quarterly earnings gain.

Quarterly net sales totaled $268.9 million, up 5 percent compared with similar 2005 data. Transit Group sales rose 15 percent, primarily because of additional commuter locomotive orders, and Freight Group sales increased 1 percent. In addition, net income rose 15 percent to $17.4 million compared with third-quarter 2005 income.

“We’re benefiting from strong, stable demand in our freight-rail markets, growth in the transit market, internal cost-improvement programs, our growth strategies [and] a multi-year backlog of more than $1 billion,” said Wabtec President and Chief Executive Officer Albert Neupaver in a prepared statement.

However, total third-quarter operating expenses of $40.7 million rose 3 percent because of stock-based compensation costs and $541,000 of amortization expenses related to restructuring. The company’s quarterly net interest income totaled $196,000 compared with third-quarter 2005’s $2.2 million primarily due to higher interest rates on a larger cash balance.

During 2006’s first nine months, net sales totaled $793.2 million, a 4 percent increase compared with similar 2005 data. Net income of $58.6 million rose more than 50 percent. But total operating expenses increased about 5 percent to $124.9 million compared with 2005’s first nine months.

Contact Progressive Railroading editorial staff.

More News from 10/26/2006