By Gennine Kelly, Web Producer, CNBC
NEW YORK (CNBC) -- Wabtec (WAB), the technology-based products and services company for rail, transit and industry, is the only stock on the NYSE (NYX) to go up in each of the last ten years.
"When we developed our strategy, it was important to realize the brutal facts were that we were in a very cyclic [cyclical] business ... and it was important that we set up a business model and our company around that fact," Albert Neupaver, president and CEO of Wabtec, told CNBC on Thursday.
The growth strategy of Wabtec is to obtain, on average, double-digit earnings-per-share growth though the business cycle, he added.
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"We really balance our strategy, we expect to get half of our growth through internal growth, through international expansion, new product development, after market expansion. And then, about half of that growth will come from acqusitions," Neupaver went on to say.On Tuesday, Wabtec signed a $27 million contract to provide Metrolink, a commuter rail agency that serves a 512-mile system in Southern California. The company will provide technology called Positive Train control, which uses GPS to monitor the speed and location of freight and passenger trains. Earlier this month, Xorail, a subsidiary of Wabtec, signed a $165 million contract with MRS Logistica in Brazil (1,000 miles of track that connect Rio de Janeiro, Minas Gerais and Sao Paulo) to design and install Communications-Based Train Control. As Wabtec's stock has continued to rise, its market cap has more than doubled in five years. "We are one of only a few companies in the world that can actually make a difference about the productivity, the safety and efficiency of the railroads," he said. -- Written by Gennine Kelly of CNBC
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