• Revenues are expected to be about $2.95 billion, down about 10% from 2015, and including about $100 million of revenue from its just-concluded Faiveley Transport acquisition.
• GAAP EPS expected to be between $3.45-$3.50, including about $60 million of pre-tax restructuring and transaction-related costs.
• About $40 million of transaction costs; $15 million of Faiveley Transport debt restructuring costs; and $3 million of additional interest costs.
- About $10 million of additional tax expense due to a one-time effective tax rate adjustment for non-deductible transaction costs.
These items equal about 50 cents per diluted share after-tax, Wabtec said. Excluding the restructuring and transaction-related costs, and the tax rate adjustment, adjusted EPS is expected to be between $3.95-$4.00, down about 2.5% from 2015.
For 2017, Wabted said revenues "are expected to be about $4.2 billion. We expect to continue to face headwinds in our U.S. freight market. Excluding restructuring and transaction-related costs, our adjusted operating margin is expected to be about 155-16%. Excluding restructuring and transaction-related costs, adjusted earnings are expected to be about 8% higher than the company’s adjusted earnings in 2016. This takes into account the required regulatory divestitures and includes estimated net synergies in 2017 of about $7-10 million. We are estimating the share count to be about 96 million, but this can vary as we complete the tender offer."
Wabtec says it will provide an update when reporting its 2016 results in February 2017.