Looking ahead, the company announced that it expects to reach or possibly surpass its previously announced fiscal 2008 earnings guidance of $1.17 to $1.23 per diluted share. Management cautioned that the company will require a strong second half contribution from the thermal desorption recycling service that was initiated in late June, along with solid even business results if it is to exceed its guidance range. Westinghouse Air Brake Technologies ( WAB) provides value-added, technology-based equipment and services for the global rail industry. Wabtec's highly engineered products, which are intended to enhance safety, improve productivity and reduce maintenance costs for customers, can be found on virtually all U.S. locomotives, freight cars and subway cars. Wabtec has been rated a buy since March 2005. The company's strengths can be seen in a variety of areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, impressive record of earnings per share growth and compelling growth in net income. For the second quarter of fiscal 2008, the company's revenue increased 19.8% year over year. This growth contributed to 21.1% improvement in earnings per share (EPS), which rose from 57 cents a year ago to 69 cents in the most-recent quarter. Net income also increased, rising 20.0% when compared with the same quarter last year. In addition, net operating cash flow increased 757.52% to $64.07 million. Wabtec's management credited international and aftermarket expansion with helping to drive growth for the company's second quarter. While the company is currently trading at a premium to its peers, we feel that its strengths justify the current valuation.