Wabtec earnings top Street forecast

Wabtec Corp. earned net income of $31.2 million in the second quarter, or 65 cents a share, vs. earnings of $30.8 million or 64 cents a share in the same period last year. The company’s second-quarter 2010 earnings topped Wall Street’s estimate of 62 cents. Wabtec increased its 2010 earnings forecast to a range of $2.45 to $3.55 a share compared with an earlier $2.40 to $2.50.

Wabtec said its second-quarter sales increased 12% to $374 million, the highest quarterly figure since the first quarter of 2009. Income from operations was $50 million, or 13.3% of sales.

The company said its Freight Group had a strong sales increase due to organic growth and acquisitions.

During the quarter, the company completed the integration of Xorail LLC, which was acquired in mid-March, and announced the formation of a third joint venture in China. After the quarter ended the company announced an agreement to acquire G&B Specialties and Bach-Simpson from Global Railway Industries Ltd.

Albert J. Neupaver, Wabtec’s president and CEO, said: “We’re pleased with the company’s overall performance in the first half and cautiously optimistic about the balance of 2010, assuming the global economy continues to improve. Our diversified business model, focus on cash generation, investment in growth strategies, and rigorous application of the Wabtec Performance System are serving the company well in the current environment and laying the groundwork for long-term growth.”