This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Westinghouse Air Brake Technologies' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Albert J. Neupaver

Thanks, Tim, good morning. We had a strong operating performance in the first quarter, with record sales of $583 million and record earnings per diluted share of $1.22. The company really hit on all cylinders during the quarter, which led us to preannounce the results and increase our guidance for the year.

As we'll discuss, our performance was driven by strong growth in our Freight Group. Our overall business is performing very well thanks to our diversified business model, our strategic growth initiatives and the power of our Wabtec Performance System, which I'll talk a little bit about today.

We are in compelling growth markets around the world, and we remain excited about our future opportunities. As I mentioned, a couple of weeks ago we increased our guidance for the year, and today we affirm that. Based on our first quarter results and current outlook, we expect our full year earnings per diluted share to be about $4.80, with sales growth now expected to be about 15% for the year. This EPS guidance is about 35% higher than our GAAP EPS last year, and 12% higher than the guidance we announced earlier in the year.

Our guidance has some assumptions. Our assumptions are: the global economy grows modestly, the freight rail traffic improves with the economy, our transit markets remain stable and no major changes in foreign exchange rates. As always, we will be disciplined when it comes to controlling costs, focused on generating cash to invest in growth opportunities and ready to respond decisively to any changes in market conditions.

Let me talk a little bit about the freight rail market. In North America rail traffic is mixed so far this year. Through mid-April, car loadings were down 1.8%. But if you exclude coal, car loadings were actually up 2.9%. Intermodal, meanwhile, was up 3.6%. Of the 20 traffic categories that are tracked, 13 are up so far this year, with particular strength in autos, metals and petroleum products. The OEM market drivers are positive in 2012. Forecasters are now expecting that about 55,000 new freight cars will be delivered in 2012. That compares to about 48,000 in 2011. Nearly 17,000 cars were delivered in the first quarter. The backlog remained at about 60,000 cars, and it appears that new car orders have stabilized.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs