WABCO Holdings Inc. (WBC), a supplier of safety and control systems for commercial vehicles, Thursday, reported an increase in net income for the fourth quarter, helped mainly by tax related benefits. Adjusted profit for the quarter declined from last year, reflecting sharply lower demand for new commercial vehicles, yet came in above analysts' estimates.
Net income for the quarter increased to $38.7 million or $0.59 per share from $21.2 million or $0.33 per share a year ago.
Performance net income declined to $23.2 million or $0.36 per share from $39.5 million or $0.62 per share in the comparable period last year. Performance net income excludes, among other items, tax related benefits of $13.9 million.
On average, five analysts polled by Thomson Reuters expected the company to earn $0.29 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter grew 1% to $459.6 million from $454.7 million in the prior-year period, but were down 9% in local currencies, reflecting a slump in demand for new commercial vehicles. Four analysts estimated revenues of $464.10 million for the quarter.
Operating income for the period rose to $25.7 million from $16.3 million in the same quarter last year.
For the full year, net income declined to $18.8 million or $0.29 per share from $213.3 million or $3.24 per share last year. Performance net income decreased to $25.7 million or $0.40 per share from $246.8 million or $3.75 per share a year ago.
Sales for the year decreased 42% to $1.49 billion from $2.59 billion last year, down 39% in local currencies, reflecting the unprecedented severe slump in global demand for new commercial vehicles. In the last 12 months, commercial vehicle production decreased by more than 60% in Europe and almost 40% in North America while production grew by 18% in China.
Jacques Esculier, WABCO's Chairman and Chief Executive Officer said, "Despite market turmoil that continued to strongly impact our suppliers and significant restructuring activities internally, our WABCO perating System delivered $56.6 million of materials and conversion productivity, with materials productivity representing a record 6.1 percent of total materials cost."
"Among other strong positive results, we also achieved cost savings of $75 million in operating expenses, resulting in a reduction of approximately 19 percent year on year," he added.
Looking forward, the company expects earnings per share to range between $0.87 and $1.27 on a U.S. GAAP basis and between $1.00 and $1.40 on a performance basis for fiscal 2010. The company also projects 2010 sales growth of 15% to 20% in local currencies. Five analysts estimate earnings of $1.24 per share on revenues of $1.82 billion for fiscal 2010.
WBC is currently trading at $26.71 per share, down $1.06 or 3.81% on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.