Wabtec 3Q earnings up 11%; backlog rises

Wilmerding, Pa.-based Wabtec Corp. Wednesday reported third-quarter earnings rose 11% to $51 million, or 63 cents per diluted share, compared with comparable third-quarter 2009 earnings of 57 cents per diluted share. Sales of $276 million were up 14% compared with the year-ago quarter.

The company’s total backlog at Sept. 30 increased to $1.04 billion, and now includes a $115 million contract to build 20 passenger locomotives for the Massachusetts Bay Transportation Authority. The locomotives are scheduled to be delivered in 2012 and 2013.

Wabtec updated its 2010 earnings guidance as follows: Full-year earnings per diluted share are now expected to be between $2.50-$2.55; previously, the company expected EPS to be between $2.45-$2.55. Full-year revenue is expected to increase about 6%-tl-7% above the previous year, primarily due to growth in the freight segment.

Wabtec President and CEO Albert J. Neupaver said, “We posted solid numbers in the third quarter, with strong sales and earnings increases, and good cash generation. Driven by increased rail traffic and execution of our growth strategies, the Freight Group has rebounded strongly this year, even as industry deliveries of new locomotives and freight cars remain well below normal. Transit Group results are lower than last year due in part to the completion of major contracts, as well as project delays and budget constraints at municipal transit authorities.

“We remain excited about the company’s long-term growth prospects, given our diversified business model, focus on cash generation, investment in growth strategies and rigorous application of the Wabtec Performance System,” Neupaver said. Wabtec noted it recently had acquired G&B Specialties and Bach-Simpson, and completed a fourth joint venture in China.