Wabtec Reports 3Q EPS Of 57 Cents, Cash From Operations of $51 Million And Updates Guidance

Wabtec Reports 3Q EPS Of 57 Cents, Cash From Operations of $51 Million And
Updates Guidance

WILMERDING, Pa., Oct. 29 /PRNewswire-FirstCall/ -- Wabtec Corporation (NYSE:
WAB) today reported its 2009 third quarter results, including the following:
-- Earnings per diluted share were 57 cents.
-- Income from operations was $46 million, or 13.8 percent of sales
compared to 13.2 percent of sales in the year-ago quarter. The
increase
in operating margin was due to cost reduction initiatives and other
benefits from the Wabtec Performance System.
-- Sales decreased to $330 million, due mainly to lower sales in the
Freight Group, which has been affected negatively by sharply lower
rail
traffic levels.

-- Cash generated from operations was $51 million, or 15 percent of
sales.
At Sept. 30, 2009, Wabtec had cash of $255 million and debt of $432
million. Following the end of the quarter, the company acquired
Unifin
International for $93 million, which reduced cash on hand by that
amount.

Based on its third quarter results and outlook for the rest of the year,
Wabtec updated its 2009 guidance as follows: Revenues are now expected to be
about 12 percent lower than 2008, with earnings per diluted share expected to
be between $2.40-$2.50. Previously, the company expected revenues to be down
about 10 percent, with EPS expected to be between $2.35-$2.55.

Albert J. Neupaver, Wabtec's president and chief executive officer, said:
"Market conditions continued to be very difficult in the third quarter for our
freight rail business, while the Transit Group remained stable. Even in this
environment, we still improved margins and generated strong cash flow. We
will continue to manage what we can in the short term, while remaining focused
on our long-term strategies and growth opportunities, such as the acquisition
of Unifin International. With annual sales of about $45 million, Unifin is a
leading manufacturer of cooling systems and related equipment for the power
generation and transmission industry. We expect it to be a strategic
complement to our Young Touchstone unit, which is well established in the
industrial cooling systems market."

Wabtec Corporation (www.wabtec.com) is a global provider of value-added,
technology-based products and services mainly for the freight rail and
passenger transit industry.

This release contains forward-looking statements, such as statements regarding
the company's expectations about future earnings. Actual results could differ
materially from the results suggested in any forward-looking statement.
Factors that could cause or contribute to these material differences include,
but are not limited to, an economic slowdown in the markets we serve; a
decrease in freight or passenger rail traffic; an increase in manufacturing
costs; and other factors contained in the company's filings with the
Securities and Exchange Commission. The company assumes no obligation to
update these statements or advise of changes in the assumptions on which they
are based.

Wabtec will host a call with analysts and investors at 10 a.m., eastern time,
today. To listen via webcast, go to www.wabtec.com and click on "Webcasts" in
the "Investor Relations" section.

WABTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)

Third Third For the For the
Quarter Quarter Nine Months Nine Months
2009 2008 2009 2008
---- ---- ---- ----

Net sales $330,455 $396,017 $1,042,428 $1,169,538
Cost of sales (235,629) (288,343) (749,484) (848,148)
-------- -------- -------- --------
Gross profit 94,826 107,674 292,944 321,390
Gross profit as
a % of Net Sales 28.7% 27.2% 28.1% 27.5%

Selling, general and
administrative expenses (37,395) (43,841) (118,528) (126,322)
Engineering expenses (10,157) (9,713) (31,481) (29,325)
Amortization expense (1,515) (1,666) (4,701) (3,481)
------ ------ ------ ------
Total operating
expenses (49,067) (55,220) (154,710) (159,128)
Operating expenses as
a % of Net Sales 14.8% 13.9% 14.8% 13.6%

Income from operations 45,759 52,454 138,234 162,262
Income from operations
as a % of Net Sales 13.8% 13.2% 13.3% 13.9%

Interest (expense) income,
net (3,687) (1,943) (12,148) (4,717)
Other (expense) income, net 394 (100) 649 (1,179)
--- ---- --- ------
Income from continuing
operations before
income taxes 42,466 50,411 126,735 156,366

Income tax expense (15,118) (17,241) (35,885) (56,921)
------- ------- ------- -------
Effective tax rate 35.6% 34.2% 28.3% 36.4%

Income from
continuing
operations 27,348 33,170 90,850 99,445

Discontinued operations
Income (loss) from
discontinued
operations
(net of tax) - - - (3)
- - - --

Net income $27,348 $33,170 $90,850 $99,442
======= ======= ======= =======

Earnings Per Common Share
Basic
Income from
continuing
operations $0.58 $0.68 $1.90 $2.05
Income from
discontinued
operations - - - -
Net income $0.58 $0.68 $1.90 $2.05

Diluted
Income from
continuing
operations $0.57 $0.68 $1.89 $2.03
Income from
discontinued
operations - - - -
Net income $0.57 $0.68 $1.89 $2.03

Weighted average
shares outstanding
Basic 47,289 48,161 47,537 48,269
====== ====== ====== ======
Diluted 47,752 48,827 48,019 48,918
====== ====== ====== ======

Sales by Segment
Freight Group $124,453 $183,276 $440,479 $574,673
Transit Group 206,002 212,741 601,949 594,865
------- ------- ------- -------
Total $330,455 $396,017 $1,042,428 $1,169,538
======== ======== ========== ==========

SOURCE Wabtec Corporation

Tim Wesley of Wabtec Corporation, +1-412-825-1543, twesley@wabtec.com