WABCO Holdings Inc. (WBC) SEC Filing 10-Q Quarterly report for the period ending Friday, March 31, 2017

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Exhibit 99.1

 

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WABCO Reports Q1 2017 Results; Continues to Solidly Outperform Global Commercial Vehicle Market

 

  Q1 2017 sales of $747.3 million, up 8.5 percent from a year ago and up 11.0 percent in local currencies

 

  Q1 2017 reported operating margin of 14.5 percent, up from revised 13.4 percent a year ago; performance Q1 2017 operating margin of 14.9 percent, up from revised 14.7 percent a year ago, in accordance with Accounting Standards Update 2017-07

 

  In Q1 2017, WABCO continued to strongly convert income into cash, resulting in net cash from operating activities of $54.3 million

 

  Q1 2017 reported diluted EPS of $1.48, up from negative $0.24 a year ago; performance Q1 2017 diluted EPS of $1.47, up from $1.37 a year ago

BRUSSELS, Belgium, April 21, 2017 – WABCO Holdings Inc. (NYSE: WBC), a leading global supplier of technologies and services that improve the safety, efficiency and connectivity of commercial vehicles, today reported Q1 2017 results.

WABCO Q1 2017

As of January 1, 2017, WABCO has elected to adopt Accounting Standards Update (ASU) 2017-07, which amends classification of pension and post-retirement benefit costs. As a result, WABCO’s Q1 2016 income statement is retrospectively revised to provide comparability.

 

U.S. Dollars in millions except EPS or otherwise indicated    Q1 2017     Q1 2016*  

Sales

   $ 747.3     $ 688.7  

Sales change – in U.S. Dollars year on year

     Up 8.5     —    

Sales change – in local currencies year on year

     Up 11.0     —    

Operating Income – Reported

   $ 108.5     $ 92.6  

Operating Income – Performance

   $ 111.1     $ 101.2  

Operating Margin – Reported

     14.5     13.4

Operating Margin – Performance

     14.9     14.7

Net Income Attributable to the Company – Reported

   $ 80.7     ($ 13.4

Net Income Attributable to the Company – Performance

   $ 80.3     $ 77.6  

Diluted EPS – Reported

   $ 1.48     ($ 0.24

Diluted EPS – Performance

   $ 1.47     $ 1.37  

 

* Revised in accordance with ASU 2017-07

“Overall, Q1 2017 marked yet another quarter of WABCO’s solid outperformance of the commercial vehicle industry relative to global truck and bus production,” said Jacques Esculier, WABCO Chairman and Chief Executive Officer.

“We continued to achieve market share gains and to sustain additional uptake of our industry-leading safety and efficiency technologies globally,” said Esculier. “In particular, in China, the world’s largest market for commercial vehicles, we further increased WABCO content per vehicle boosted by the continued momentum in adoption of anti-lock braking systems on light- and medium-duty trucks.”


The following information was filed by WABCO Holdings Inc. on Friday, April 21, 2017 as an 8K 2.02 statement, which is a press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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  • wbc_10q_2017-04-21_12_20
    Revenue - Product
    Sales in North America increased 2.8% 5.1% excluding foreign currency translation effects driven by favorable year-over-year sales comparisons due to inventory reduction by our North American joint venture in the first quarter of 2016.
  • wbc_10q_2017-04-21_27_113
    Financial - Expense
    Other non-operating expenses increased by $5.2 million to $10.7 million for the first quarter of 2017 as compared to $5.5 million for the first quarter of 2016, largely driven by higher pension and post-retirement benefit costs as a result of the lower interest rate environment applicable to our foreign pension and post-retirement benefit plans as well as a $3.0 million one-time charge to reflect a mortality update to one of our plans.
  • wbc_10q_2017-04-21_30_35
    Financial - Earnings
    The Company recorded net income including noncontrolling interests of $84.3 million for the first three months of 2017 compared with a net loss of $9.8 million for the first three months of 2016 that was mainly due to $86.4 million of tax expense related to an uncertain tax position.
  • wbc_10q_2017-04-21_31_43
    Other - Other
    Other long-term liabilities for the first three months of 2017 decreased $4.7 million compared to a decrease of $2.2 million for the first three months of 2016, primarily driven by the continued shift from non-current to current liabilities on our streamlining accruals primarily related to our 20142015 Program as discussed in Note 11 of Notes to Condensed Consolidated Financial Statements.
  • wbc_10q_2017-04-21_46_79
    Other - Other
    As of March 31, 2017, there was no hedge ineffectiveness and a gain of $1.3 million, net of taxes of $0.8 million, related to these notes has been recognized in cumulative translation adjustment within AOCI.
  • wbc_10q_2017-04-21_45_77
    Financial - Income
    As of December 31, 2016 and March 31, 2017, a gain of $9.3 million, net of taxes of $5.8 million, related to these contracts has been recognized in cumulative translation adjustment within accumulated other comprehensive income AOCI.
  • wbc_10q_2017-04-21_68_135
    Financial - Expense
    the success of, and costs and savings associated with, our current streamlining initiatives
  • wbc_10q_2017-04-21_25_111
    Financial - Shares / Equity
    Equity in net income of unconsolidated joint ventures decreased by $1.5 million to $5.7 million for the first quarter of 2017 as compared to $7.2 million for the first quarter of 2016, primarily driven by lower income from our North American joint venture due to the market decline in the production of heavy-duty vehicles of 18%.
  • wbc_10q_2017-04-21_32_45
    Other - Other
    The net cash usage for 2017 includes capital expenditures of $6.9 million of investments in tooling, $20.2 million in plant and equipment and $1.1 million in software to support the Companys long-term growth strategies.
  • wbc_10q_2017-04-21_31_42
    Revenue - Geography
    This increase was mainly driven by an $11.7 million payment made into an escrow account in January 2017 with the Brazilian government due to legislative changes requiring a cash deposit in lieu of a bank guarantee for outstanding litigation related to WABCO Brazils business for periods prior to the spin-off of WABCO from Trane, partially offset by lower taxes receivable.
  • wbc_10q_2017-04-21_28_30
    Financial - Income
    The income tax expense for the first quarter of 2016 included an income tax provision of $86.4 million with respect with the clawback of the tax benefits obtained under the EPR program for tax years 2012 to 2015.
  • wbc_10q_2017-04-21_31_39
    Other - Other
    Other accrued liabilities and taxes decreased $14.7 million for the first three months of 2017 compared to a decrease of $6.1 million for the first three months of 2016.
  • wbc_10q_2017-04-21_13_24
    Revenue - Product
    Sales in China grew 64.7% 73.5% excluding foreign currency translation effects which was primarily supported by a 48% growth in truck and bus production as well as increased WABCO content per vehicle and higher penetration rate of ABS on light duty vehicles and favorable customer mix.
  • wbc_10q_2017-04-21_34_51
    Financial - Debt
    Our total third-party debt increased $0.3 million for the first three months of 2017 compared to $132.1 million for the first three months of 2016 when we made additional borrowings on our revolving credit facilities mainly to finance our acquisitions of MICO and LCL and also to fund our share repurchase program.
  • wbc_10q_2017-04-21_4_9
    Other - Other
    If relief is granted for 2013 and 2014 the potential tax benefit impact in a subsequent quarter could be in aggregate up to $32 million.
  • wbc_10q_2017-04-21_30_38
    Revenue - Product
    This use of working capital results from increased business compounded by the sales growth being primarily in China which has higher working capital requirements.
  • wbc_10q_2017-04-21_13_25
    Revenue - Product
    Sales in India decreased 0.1% 0.9% excluding foreign currency translation effects driven by a product launch of automatic slack adjusters offset by a decline in vehicle production.
  • wbc_10q_2017-04-21_58_125
    Other - Other
    our ability to access credit markets or capital markets on a favorable basis or at all
  • wbc_10q_2017-04-21_57_124
    Financial - Expense
    our ability to receive components and parts from our suppliers of a reasonable quality level or to obtain them at reasonable price levels due to fluctuations in the costs of the underlying raw materials
  • wbc_10q_2017-04-21_12_22
    Revenue - Product
    Sales in South America increased 24.6% 1.4% excluding foreign currency translation effects, driven primarily by growth in truck and bus production.
  • wbc_10q_2017-04-21_44_70
    Revenue - Geography
    Foreign exchange contracts are used by the Company to offset the earnings impact relating to the variability in exchange rates on certain assets and liabilities denominated in non-functional currencies and have not been designated as relationship hedges.
  • wbc_10q_2017-04-21_41_67
    MA - Other
    The proceeds from the revolving credit facilities are available to finance acquisitions, refinance existing indebtedness and meet general financing requirements.
  • wbc_10q_2017-04-21_28_31
    Financial - Income
    In the three months ended March 31, 2017 and 2016, the income tax provision was primarily the net result of taxes on the mix of earnings in multiple tax jurisdictions, foreign tax credits and rulings, and the assessment and accrual of uncertain tax positions resulting from tax authority audits or changes in the interpretation of the law.
  • wbc_10q_2017-04-21_31_40
    Other - Other
    The major driver of this decrease is due to payments made for our annual incentive compensation and tax-related items, partially offset by accruals for payroll.
  • wbc_10q_2017-04-21_10_100
    Revenue - Product
    Our sales for the first quarter of 2017 were $747.3 million, an increase of 8.5% 11.0% excluding foreign currency translation effects from $688.7 million in 2016.
  • wbc_10q_2017-04-21_11_16
    Revenue - Product
    Total sales in Europe, our largest market, increased 4.8% 8.6% excluding foreign currency translation effects for the first quarter of 2017.
  • wbc_10q_2017-04-21_13_23
    Revenue - Product
    Total sales in Asia increased 26.2% 27.4% excluding foreign currency translation effects compared to an estimated 26% increase in new vehicle production in the region.
  • wbc_10q_2017-04-21_4_7
    Revenue - Geography
    As previously disclosed, we and the Belgian Government have separately appealed the 2016 decision of the European Commission which invalidated the Belgian excess profit ruling EPR program that we and many other companies had participated in since 2004 and required a clawback of all past tax benefits received under the program.

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Exhibit 10.1 - MATERIAL CONTRACT

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Exhibit 31.1 - CERTIFICATION OF THE CEO SECTION 302

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Exhibit 31.2 - CERTIFICATION OF THE CFO SECTION 302

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Exhibit 32.1 - CERTIFICATION OF THE CEO SECTION 906

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Exhibit 32.2 - CERTIFICATION OF THE CFO SECTION 906

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001390844-17-000008
  • Submitted to the SEC: Friday, April 21, 2017
  • Accepted by the SEC: Friday, April 21, 2017
  • Period Ending: March 2017
Companies
 

WBC Morningstar

WABCO Holdings Inc.

$136.69 -0.06 (-0.04%)

Day's Range:
$135.35 to $137.64

52-Week Range:
$96.10 to $144.98

Volume:
187,668

Volume (Avg):
499,523

Earnings per Share:
$5.99

PEG / Short / PE Ratios:
2.05 / 2.32 / 22.80

Market Cap:
$7.33B

Book Value:
15.74

EBITDA:
$479.40M

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