Wabtec 3Q Earnings Fall On Freight Rail Slowdown

WILMERDING, Pa. (AP) — Railroad equipment supplier Wabtec Corp. said Thursday its third-quarter earnings fell 18 percent as demand for new freight railcars plunged.

Freight railroads are suffering from much lower shipping volume than a year ago, so most are storing railcars and buying significantly fewer new ones.

Wabtec earned $27.3 million, or 57 cents per share, last quarter, compared with $33.2 million, or 68 cents per share, a year ago.

Revenue fell to $330.5 million, from $396 million in the third-quarter of 2008.

Analysts surveyed by Thomson Reuters expected earnings of 56 cents per share on $349.5 million in sales.

Wabtec said its transit rail business remained stable during the quarter.

For the full-year, it now expects earnings per share between $2.40 and $2.50, compared with a previous estimate of $2.35 to $2.55. But it expects sales to fall more than last year, now forecasting a 12 percent decline over 2008, compared with a previous prediction of 10 percent.

Shares rose 38 cents to $38.04 in midday trading.