UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): July 24, 2014
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or other Jurisdiction
of Incorporation)
| 1-13782 | 25-1615902 | |
| (Commission File No.) |
(I.R.S. Employer Identification No.) | |
| 1001 Air Brake Avenue Wilmerding, Pennsylvania |
15148 | |
| (Address of Principal Executive Offices) | (Zip Code) | |
(412) 825-1000
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On July 24, 2014, Westinghouse Air Brake Technologies Corporation (the “Company”) issued a press release reporting, among other things, the Company’s 2014 second quarter results. A copy of this press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated into this Item 2.02 by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished pursuant to this Item 2.02 in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
On July 24, 2014, the Company issued a press release which, among other things, updated previously provided earnings guidance for fiscal year 2014. A copy of the press release is attached to this report as Exhibit 99.1 and the second paragraph discussing 2014 guidance is incorporated into this Item 7.01 by reference.
In accordance with General Instruction B.2 of Form 8-K, the information furnished pursuant to this Item 7.01 in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibit. |
The following exhibit is furnished with this report on Form 8-K:
| Exhibit |
Description | |
| 99.1 | Press release dated July 24, 2014. | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: July 24, 2014
| WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION | ||
| By: | /s/ Patrick D. Dugan | |
| Patrick D. Dugan | ||
| Senior Vice President and Chief Financial Officer | ||
EXHIBIT INDEX
| Exhibits | ||
| 99.1 | Press release issued by Westinghouse Air Brake Technologies Corporation on July 24, 2014. | |
Exhibit 99.1
|
News Release |
Wabtec Reports Record Quarterly Sales and Earnings; 2Q EPS of 91 Cents, Up 18 Percent; Increases Full-Year EPS Guidance
WILMERDING, PA, July 24, 2014 – Wabtec Corporation (NYSE: WAB) today reported record results for the 2014 second quarter, including the following:
| • | Second quarter sales were a record $731 million, 15 percent higher than the year-ago quarter, due to strong growth in both the Freight and Transit segments. |
| • | Income from operations was a record $132 million, or 18.1 percent of sales, compared to 17.6 percent in the year-ago quarter. |
| • | Earnings per diluted share were a record 91 cents, which was 18 percent higher than the year-ago quarter. |
| • | Cash flow from operations in the quarter was $111 million, or 15 percent of sales. At June 30, 2014, the company had cash of $226 million and debt of $501 million. During the quarter, the company repurchased 194,700 shares of company stock for $14 million. |
Based on Wabtec’s first half results and outlook for the rest of the year, the company increased its 2014 guidance for earnings per diluted share to about $3.52, with revenues expected to be up about 15 percent for the year.
Albert J. Neupaver, Wabtec’s executive chairman, said: “The company had a strong operating quarter, with record sales, earnings and margins, as we continued to execute our growth strategies and internal improvement initiatives. We are optimistic about our future growth prospects, given the diversity of our business model, strong global investment in transportation and infrastructure projects, and the power of our Wabtec Performance System to drive efficiency and cost reductions.”
Raymond T. Betler, Wabtec’s president and chief executive officer, said: “During the quarter we also completed the acquisition of Fandstan Electric Group, a leading manufacturer of pantographs and other products for rail and tram transportation, and industrial and energy markets. Fandstan Electric fits all of our strategic growth initiatives, and our integration efforts are already well underway.”
Wabtec Corporation (www.wabtec.com) is a global provider of value-added, technology-based products and services for rail and other industrial markets.
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, go to www.wabtec.com and click on the “Webcasts” tab in the “Investor Relations” section.
| Tim Wesley | Phone: 412.825.1543 E-mail: twesley@wabtec.com Website: www.wabtec.com |
Wabtec Corporation 1001 Air Brake Avenue Wilmerding, PA 15148 |
WABTEC CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
| Second Quarter 2014 |
Second Quarter 2013 |
For the Six Months 2014 |
For the Six Months 2013 |
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| Net sales |
$ | 731,068 | $ | 638,002 | $ | 1,426,317 | $ | 1,253,512 | ||||||||
| Cost of sales |
(506,410 | ) | (445,121 | ) | (992,090 | ) | (877,743 | ) | ||||||||
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| Gross profit |
224,658 | 192,881 | 434,227 | 375,769 | ||||||||||||
| Gross profit as a % of Net Sales |
30.7 | % | 30.2 | % | 30.4 | % | 30.0 | % | ||||||||
| Selling, general and administrative expenses |
(72,982 | ) | (63,874 | ) | (143,063 | ) | (128,174 | ) | ||||||||
| Engineering expenses |
(14,221 | ) | (11,280 | ) | (27,167 | ) | (22,614 | ) | ||||||||
| Amortization expense |
(5,132 | ) | (5,173 | ) | (9,828 | ) | (8,760 | ) | ||||||||
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| Total operating expenses |
(92,335 | ) | (80,327 | ) | (180,058 | ) | (159,548 | ) | ||||||||
| Operating expenses as a % of Net Sales |
12.6 | % | 12.6 | % | 12.6 | % | 12.7 | % | ||||||||
| Income from operations |
132,323 | 112,554 | 254,169 | 216,221 | ||||||||||||
| Income from operations as a % of Net Sales |
18.1 | % | 17.6 | % | 17.8 | % | 17.2 | % | ||||||||
| Interest (expense) income, net |
(4,525 | ) | (3,271 | ) | (8,975 | ) | (6,885 | ) | ||||||||
| Other income (expense), net |
243 | 406 | 226 | (175 | ) | |||||||||||
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| Income from operations before income taxes |
128,041 | 109,689 | 245,420 | 209,161 | ||||||||||||
| Income tax expense |
(39,336 | ) | (35,051 | ) | (76,581 | ) | (64,910 | ) | ||||||||
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| Effective tax rate |
30.7 | % | 32.0 | % | 31.2 | % | 31.0 | % | ||||||||
| Net income attributable to Wabtec shareholders |
$ | 88,705 | $ | 74,638 | $ | 168,839 | $ | 144,251 | ||||||||
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| Earnings Per Common Share | ||||||||||||||||
| Basic | ||||||||||||||||
| Net income attributable to Wabtec shareholders |
$ | 0.92 | $ | 0.78 | $ | 1.76 | $ | 1.51 | ||||||||
| Diluted | ||||||||||||||||
| Net income attributable to Wabtec shareholders |
$ | 0.91 | $ | 0.77 | $ | 1.74 | $ | 1.49 | ||||||||
| Weighted average shares outstanding |
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| Basic |
96,048 | 95,762 | 95,674 | 95,243 | ||||||||||||
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| Diluted |
97,058 | 97,102 | 96,827 | 96,606 | ||||||||||||
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| Sales by Segment | ||||||||||||||||
| Freight Group |
$ | 411,502 | $ | 354,857 | $ | 797,008 | $ | 668,536 | ||||||||
| Transit Group |
319,566 | 283,145 | $ | 629,309 | $ | 584,976 | ||||||||||
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| Total |
$ | 731,068 | $ | 638,002 | $ | 1,426,317 | $ | 1,253,512 | ||||||||
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