This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: WAB

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs