After strong 2010, Wabtec sees better 2011

Wabtec Corp. on Tuesday reported strong sales and earnings for 2010 and issued 2011 guidance calling for an increase in revenue of 10%, with earnings per diluted share rising to a $2.90 from lest year’s $2.56.

Wabtec said fourth-quarter earnings per diluted share were 64 cents, 28% higher than the year-ago quarter. Sales rose 10% to $393 million, driven by higher sales in the Freight Group.

For the full year, Water had sales of $1.5 billion and generated a record cash flow from operations of $176 million, or 11.7% of sales—the 13th straight year that cash flow from operations exceeded net income.

The company had an operating margin of 13.5% in 2010, compared with 12.8% in2009.

On Dec. 31, Wabtec’s multiyear backlog was $1.1 billion, 14% higher than at year-end 2009. Net debt at year-end was $185 million.

Albert J. Neupaver, Wabtec’s president and chief executive officer, commented: “Our performance in 2010 was strong, with solid increases in sales and earnings. We are especially pleased with our track record of generating strong cash flow from operations. In 2011, we expect to continueto benefit from our diversified business model, growth strategies, and application of our Wabtec Performance System. Our long-term outlook for the company remains positive, as we continue to drive Wabtec to take full advantage of its growth opportunities around the world.”