The company said income from operations was $101 million, a record, while earnings per diluted share also set a record at $1.33, compared with 75 cents per diluted share in the second quarter of 2011. That beat Wall Street consensus estimates of $1.23 per share.
(Excluding special items recorded in the 2011 second quarter, earnings per diluted share were 94 cents (non-GAAP) in the 2011 second quarter.)
Second-quarter sales also set a record, at $610 million, 27% higher than a year ago, and attributed primarily to strong growth in the Freight Group.
On June 30, Wabtec had cash of $234 million and debt of $443 million. During the second quarter, Wabtec repurchased 298,800 shares of company stock for about $22 million. The company has about $100 million remaining on a $150 million authorization.
Based on those results, Wabtec increased its full-year 2012 guidance for earnings per diluted share to between $5.10- and $5.15, with revenues expected to be up about 20%, compared with earlier guidance of 15%.
Said Wabtec Presdient and CEO Albert J. Neupaver, “We had another strong quarter and are positioned to perform well in the second half of the year. The company continues to benefit from rigorous application of the Wabtec Performance System, its diverse business model and ongoing investments in strategic growth initiatives. Recently, we completed two acquisitions in support of our growth strategies: Mors Smitt, which expanded our geographic footprint; and Tec Tran, which added hydraulic braking technology.”
In a note to investors, KeyBanc Capital Markets Inc. analysts Steve Barger and Alexannder Walsh said, “Overall, we believe WAB is delivering solid results as it benefits from strong OEM freight railcar deliveries.”