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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

WABCO's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: WBC

So looking first at the topline, our revenues were down 4.5% in local currencies versus a year ago. It’s actually down 1% again in local currencies sequentially versus the first quarter of 2012.

We generated again record high gross profit margin of 30.8%. Our performance operating income reached $92.8 million which hits to the margin -- record margin again the 14.6%.

Our performance EPS ended up by $1.19 per share versus $1.23 a year ago, generating a free cash flow of $56.6 million, leading to a conversion rate of 72% for Q2 and when you look at the first half we also saw a 87% conversion rates. We return the majority of that cash $52 million to shareholders, we do repurchase of 963,000 shares. And although at this stage we are maintaining our full year 2012 guidance.

Turning to page four, as we do usually we are full of deep dive a little bit more into sales and markets dynamics. Starting with the channels. Revenues from the OE channel went down 9% year-over-year, 5% sequentially versus Q1 2012, mostly driven again by the strong decline of production in emerging markets.

Aftermarket was up only 1%, having to actually compensate a 7% decline in Europe and that’s again mostly when taking Southern Europe. And that was again offset by growth in other parts of the world like Americas, India, China. Sales to joint venture was up 39%, [exceeding] and supporting the growth of our commercial vehicle production in the U.S.

Now looking at the evolution of revenues fro WABCO versus the dynamics of the markets in the main regions of our world, starting with Europe, production in Europe was down 7% year-over-year, but up 7% sequentially versus Q1.

In the meantime our revenues were down 9% and this 2% underperformance was actually with the two main shorter causes, one is, the fact that last year we were still manufacturing in Europe and economy fell in Europe from pressures that were shift to North America to support one of our old customer, this year we have actually transferred production to North America and those revenues are accounted for now in North America not in Europe anymore.

Read the rest of this transcript for free on seekingalpha.com

3 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 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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