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Rail News: Financials

Wabtec boosts second-quarter income, restructures to control costs

In the second quarter, Wabtec Corp.’s earnings per diluted share totaled 43 cents, a 34 percent increase compared with second-quarter 2005 and the company’s ninth-consecutive quarterly earnings gain.

In addition, net income of $21.1 million rose 40 percent compared with the same 2005 period. However, quarterly sales of $261.9 million decreased 1.7 percent and operating expenses of $41.1 million increased 3 percent.

Meanwhile, Wabtec’s board approved a restructuring plan under which the company will downsize Canadian plants in Stoney Creek and Wallaceburg, Ontario, by moving production to other lower-cost facilities and outsourcing work. The plan will help Wabtec reduce operating costs without affecting production.

“With demand expected to remain strong in our freight markets and with a record multi-year backlog of more than $1 billion — a significant portion of which represents transit projects with deliveries accelerating next year — we are optimistic about Wabtec’s growth prospects in 2007 and beyond,” said Wabtec President and Chief Executive Officer Albert Neupaver in a prepared statement.

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More News from 7/27/2006