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WABCO Raises Full Year 2010 Performance Guidance

^{Published on 2010-06-25 03:41:27 - Market Wire}
 

BRUSSELS, BELGIUM--(Marketwire - June 25, 2010) - WABCO Holdings Inc. (NYSE: [ WBC ]) [[ www.wabco-auto.com ]], a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that the company has raised its full year 2010 guidance on a performance basis due to stronger than expected market developments across most of the regions it serves worldwide.

Raising its full year 2010 guidance, WABCO now expects an estimated increase in 2010 sales of 30 to 35 percent in local currencies, up from 23 to 28 percent in its previous guidance.

WABCO has also raised its full year 2010 guidance for performance operating margin to range from 8 to 9 percent, up from its previous guidance of 6.5 to 8.5 percent, and operating margin on a U.S. GAAP basis to range from 7.7 to 8.7 percent, up from its previous guidance of 6.2 to 8.2 percent.

Furthermore, WABCO has raised its full year 2010 guidance for diluted earnings per share on a performance basis to range from $1.75 to $2.05, an upgrade of previous guidance that ranged from $1.40 to $1.80. After integrating the impact of the European Commission fine announced on June 23, WABCO has adjusted its full year 2010 guidance for diluted earnings per share on a U.S. GAAP basis from a profit ranging from $1.27 to $1.67 per share to a loss ranging from $4.24 to $4.55 per share.

"Most of the markets that we serve around the world are developing more favorably than we saw two months ago, creating even better conditions for WABCO to perform on our three-pillar strategy of technology leadership, global expansion and excellence in execution," said Jacques Esculier, WABCO Chairman and Chief Executive Officer. "Now more than ever, we can unleash the full power of our business, as we have finally closed a chapter involving the European Commission and their long delayed decision. Moving forward, we have sufficient resources to fully pursue our growth opportunities."

Conference Call Today

As previously disclosed, WABCO will hold a conference call today at 9:00 a.m. Eastern Time. Jacques Esculier, Chairman and Chief Executive Officer, and Ulrich Michel, Chief Financial Officer, will discuss the European Commission fine announced on June 23 and provide the company's business update.

The call will be webcast at [ www.wabco-auto.com ] and it is also accessible by telephone in listen only mode. Dial-in number is +1 408 940 3818 and U.S. toll-free dial-in number is 877 844 0834.

A replay of the call will be available from 12:00 Noon Eastern Time on June 25 until midnight July 25, 2010. Replay dial-in number is +1 706 645 9291 and U.S. toll-free dial-in number is 800 642 1687. Pass code is 83663853.

About WABCO

WABCO Vehicle Control Systems (NYSE: [ WBC ]) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $1.5 billion in 2009, WABCO is headquartered in Brussels, Belgium. For more information, visit [ www.wabco-auto.com ]

Forward-Looking Statements

Comments in this document contain certain forward-looking statements, which are based on management's good faith expectations and beliefs concerning future developments. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the risks and uncertainties described in the "Risk Factors" section and the "Forward Looking Statements" section of WABCO's Form 10-K, as well as in the "Management's Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on company estimates.

Non-GAAP Financial Measures

This document contains certain non-GAAP financial measures as that term is defined by the SEC. EBIT and sales excluding the effects of foreign exchange are non-GAAP financial measures. Additionally, gross profit, gross profit margin, operating income, operating income margin, EBIT, EBIT margin, net income and net income per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation (including European Commission fine) and streamlining items and one-time and discrete tax items, as applicable. Lastly, "free cash flow" presents our net cash provided by operating activities less purchases of property, plant, equipment and computer software. These measures should be considered in addition to, not as a substitute for, GAAP measures. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the company's business. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees. Reconciliations of the non-GAAP financial measures to the most comparable GAAP measures are available in WABCO's EC Fine and Business Update presentation posted on the company's website.