Skip to content

WAB · Westinghouse Air Brake Technologies

36 filings

10-K

WAB 10-K Annual Reports

Westinghouse Air Brake Technologies - 36 annual reports

Filing record · 2016–202610-K1110-Q338-K132

2025
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2025
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2025 net sales of $11.17 billion, up from $10.39 billion in 2024, with income from operations of $1.79 billion versus $1.61 billion and net income attributable to Wabtec shareholders of $1.17 billion versus $1.06 billion. Diluted earnings per share were $6.83 compared with $6.04 in 2024. Growth was driven by $464 million of organic sales, $355 million from acquisitions (primarily Inspection Technologies) and $33 million of favorable foreign exchange. Cost of sales as a percentage of net sales improved to 65.9% from 67.6%, reflecting productivity, restructuring savings and portfolio exits, though operating expenses rose 14.6% to $2.01 billion, partly on acquisition-related costs. The company spent heavily on growth in 2025. Cash from operations was $1.76 billion, but investing outflows of $2.75 billion were driven by the Inspection Technologies (about $1.79 billion) and Frauscher (about $792 million) acquisitions, and total debt rose to $5.5 billion at December 31, 2025. Total backlog reached $27.4 billion, including $15.5 billion of new orders in 2025. Management also cited a $4.2 billion multi-national locomotive order with Kazakhstan's KTZ as the largest in company history. Subsequent to year end, the Dellner Couplers acquisition (about €890 million) closed on February 10, 2026. Shareholder returns included $223 million of share repurchases and $173 million of dividends in 2025. On February 6, 2026, the Board reauthorized a $1.2 billion repurchase program. The auditor, Ernst & Young LLP, issued unqualified opinions on both the financial statements and internal control over financial reporting, with the 2025 acquisitions excluded from the internal control assessment as permitted.
Feb 13, 2026
2024
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2024
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2024 total net sales of $10.39 billion, up from $9.68 billion in 2023, with the filing stating an increase of $710 million, or 7.3%. Income from operations rose to $1.61 billion from $1.27 billion, and net income attributable to Wabtec shareholders was $1.06 billion, or $6.04 diluted earnings per share, versus $4.53 in 2023. Freight Segment sales were $7.47 billion (about 72% of net sales) and Transit Segment sales were $2.92 billion (about 28%). Total backlog was approximately $22.3 billion at December 31, 2024, with about $7.68 billion expected to be delivered in 2025. Operating cash flow was $1.83 billion, and the company repurchased $1.10 billion of stock during the year. Balance sheet and capital allocation were central themes. Total debt was $4.0 billion at year-end, against cash, cash equivalents and restricted cash of $715 million. The company's credit agreements require an Interest Coverage Ratio of at least 3.0 to 1.0 and a Leverage Ratio not to exceed 3.5 to 1.0, and the filing says it was in compliance at December 31, 2024. Dividends were $140 million in 2024, and the Board authorized an additional $1.0 billion for share repurchases in December 2024. The filing also reports that Fitch and S&P upgraded the company's credit rating from BBB- to BBB, and that Moody's changed its outlook to positive. Looking ahead, the company announced Integration 3.0 in February 2025, targeting incremental run-rate synergies of $100 million to $125 million by 2028, with expected charges of $125 million to $155 million. In January 2025 it agreed to acquire Evident's Inspection Technologies division for $1.78 billion, with completion expected by the end of the first half of 2025. The filing notes that the Progress Rail antitrust lawsuit remains at an early stage, with a motion to dismiss pending.
Feb 12, 2025
2023
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2023
Westinghouse Air Brake Technologies Corporation (Wabtec Corporation) reported 2023 net sales of $9.68 billion, up from $8.36 billion in 2022, with the increase driven by organic growth of $1.20 billion across both segments. Income from operations rose to $1.27 billion from $1.01 billion, and net income attributable to Wabtec shareholders was $815 million, or $4.53 per diluted share, compared with $633 million, or $3.46 per diluted share, in 2022. The Freight Segment accounted for approximately 72% of net sales and the Transit Segment for approximately 28%. Aftermarket parts and services represented approximately 60% of total net sales, and total backlog was approximately $22 billion at December 31, 2023. Cash provided by operating activities was $1.20 billion in 2023, versus $1.04 billion in 2022. The company repurchased $409 million of stock and paid $123 million in dividends, and ended the year with total debt of $4.1 billion, primarily Senior Notes. Cash, cash equivalents and restricted cash were $620 million. In February 2024 the Board reauthorized its stock repurchase program to $1 billion. Management highlighted the Integration 2.0 restructuring initiative, which targets incremental run-rate synergies of $75 million to $90 million in 2025, and Portfolio Optimization, with expected net exit charges of approximately $85 million. The filing also discloses a Progress Rail antitrust lawsuit filed in 2023 that seeks, among other relief, an order requiring Wabtec to divest GE Transportation; the company intends to vigorously defend the case.
Feb 14, 2024
2022
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2022
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2022 total net sales of $8.36 billion, up from $7.82 billion in 2021, with income from operations of $1.011 billion versus $876 million and net income attributable to Wabtec shareholders of $633 million versus $558 million. Growth was driven mainly by the Freight Segment, which accounted for about 72% of 2022 net sales, and by higher Services sales from locomotive modernizations and a larger active locomotive fleet. Diluted earnings per share were $3.46, compared with $2.96 in 2021. Operating cash flow was $1.038 billion, and capital expenditures were $149 million. The company ended 2022 with total backlog of about $22 billion, of which $6.76 billion was expected to be delivered in 2023. Total debt was $4.0 billion, mostly Senior Notes, and cash, cash equivalents and restricted cash was $541 million. Management launched Integration 2.0, a three-year initiative targeting incremental run-rate synergies of $75 million to $90 million by 2025, with one-time charges estimated at $135 million to $165 million. About $46 million of those charges were recorded in 2022. Shareholders received $473 million in share repurchases and $111 million in dividends during 2022. The filing also flags risks, including supply chain disruptions, inflation, the Russia-Ukraine conflict, and exposure to international operations, with about 55% of 2022 net sales made to customers outside the United States. A cyber incident detected in June 2022 was reported as not having a material financial impact. The auditor, Ernst & Young LLP, issued unqualified opinions on the financial statements and on internal control over financial reporting.
Feb 15, 2023
2021
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2021
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2021 total net sales of $7.82 billion, up from $7.56 billion in 2020, with income from operations rising to $876 million from $745 million and net income attributable to Wabtec shareholders of $558 million versus $414 million. Gross profit was $2.37 billion, and diluted earnings per share were $2.96 compared with $2.17 in 2020. Results were helped by acquisitions, which contributed $138 million of sales (primarily Nordco, acquired March 31, 2021), and by favorable foreign exchange, which added $134 million, while organic sales declined $6 million. The filing states that COVID-19 had a materially adverse impact on operations and business results in both 2021 and 2020, and that supply chain disruptions, chip shortages and broad-based cost inflation are expected to continue into 2022. The Freight Segment generated $5.24 billion of sales (about 67% of total) and income from operations of $717 million, while the Transit Segment generated $2.58 billion of sales and $238 million of income from operations. Operating cash flow was $1.07 billion, up from $784 million, and capital expenditures were $130 million. Year-end cash was $473 million against total debt of $4.1 billion, mainly senior notes. Backlog stood at approximately $22 billion at December 31, 2021, of which $6.27 billion is expected to be delivered in 2022. The company also issued a €500 million 1.25% senior note due 2027, repurchased $300 million of stock in 2021, and on February 10, 2022 increased its repurchase authorization to $750 million. The filing describes a leading position in freight and transit rail, with aftermarket sales historically about 60% of total net sales and more than 23,000 locomotives in service. Key risks include customer concentration (top five customers about 28% of net sales), COVID-19 uncertainty, raw material and supply chain volatility, international exposure (about 60% of net sales from outside the U.S.), and the leverage covenants in its credit agreement.
Feb 17, 2022
2020
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2020
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2020 total net sales of $7.56 billion, down from $8.20 billion in 2019, as COVID-19 reduced locomotive equipment sales, services volumes and transit production. Net income attributable to Wabtec shareholders rose to $414.4 million from $326.7 million, and diluted earnings per share were $2.17 versus $1.84. Income from operations increased to $744.5 million from $663.1 million, helped by GE Transportation integration synergies, lower SG&A and lower engineering expense, though the filing notes cost of sales excluding charges rose as a percentage of sales in the Freight Segment. Cash flow and balance sheet data show operating cash flow of $783.7 million, down from $1,015.5 million, with total debt of $4.2 billion at December 31, 2020, including $3.5 billion of senior notes. Backlog was $21.6 billion at year end, with $5.5 billion expected to be delivered in 2021. The company stated that it expects COVID-19 to continue to have a materially adverse impact on its operations and business results into 2021. On February 11, 2021, the board increased the stock repurchase authorization to $500 million. The filing describes two segments: Freight, which accounted for about 67% of 2020 net sales, and Transit, about 33%. Aftermarket parts and services represented about 60% of total net sales, and about 58% of net sales came from customers outside the United States. Key risks disclosed include customer concentration, cyclicality of rail and transit spending, the GE Transportation integration, COVID-19 supply chain disruption, and leverage covenants under the Senior Credit Facility.
Feb 19, 2021
2019
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2019
Westinghouse Air Brake Technologies Corporation (doing business as Wabtec Corporation) reported 2019 net sales of $8.2 billion, up from $4.36 billion in 2018, and net income attributable to Wabtec shareholders of $326.7 million, compared with $294.9 million in 2018. The increase was driven mainly by the February 25, 2019 merger with GE Transportation, which contributed $3.8 billion of net sales and $358.0 million of operating income. Diluted EPS fell to $1.84 from $3.05, reflecting a much larger share count of 177.3 million diluted shares versus 96.5 million in 2018. Income from operations rose to $663.1 million from $473.4 million, while gross margin and interest expense ($219.1 million, up from $112.2 million) both moved materially with the acquisition. The balance sheet expanded significantly. Total assets reached $18.94 billion, including goodwill of $8.36 billion and other intangibles of $4.10 billion, and total debt rose to $4.43 billion from $3.86 billion. Cash provided by operating activities was $1.02 billion, compared with $314.7 million in 2018, aided by favorable inventory and other working-capital changes. Backlog stood at $22.4 billion at December 31, 2019, of which $5.6 billion was expected to be delivered in 2020. The company identified approximately $250 million of expected annual run-rate operating synergies from the GE Transportation combination before 2022. The company also disclosed that it reached a settlement in January 2020 of a putative class action related to a 2018 consent decree on employee non-solicitation, and that a Siemens patent dispute was settled in September 2019. Management reported that internal control over financial reporting was effective as of December 31, 2019, but excluded GE Transportation from that assessment, which represented 61% of total assets and 47% of revenues.
Feb 24, 2020
2018
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2018
Westinghouse Air Brake Technologies Corporation (doing business as Wabtec Corporation) reported 2018 net sales of $4,363.5 million, up from $3,881.8 million in 2017, with net income attributable to Wabtec shareholders of $294.9 million, or $3.05 per diluted share, compared with $262.3 million, or $2.72 per diluted share, in 2017. Income from operations rose to $473.4 million from $421.1 million. Growth was driven mainly by organic increases in Specialty Products and Electronics and Brake Products, $134.7 million of acquisition sales, and $62.3 million of favorable foreign exchange. Aftermarket sales and services represented about 57% of 2018 total sales, and about 67% of sales were to customers outside the U.S. The most significant event disclosed is the merger with GE Transportation, completed on February 25, 2019, after a $2.875 billion cash Direct Sale payment. The filing states the total value of consideration was approximately $10.2 billion, and that GE and former GE common stockholders would hold about 49.2% of Wabtec common shares on a fully diluted, as-converted basis. To finance the transaction, the company issued $2.5 billion of senior notes in September 2018, and total debt rose to $3,856.9 million at December 31, 2018 from $1,870.5 million a year earlier. Cash, cash equivalents and restricted cash were $2,342.4 million at year-end, largely restricted cash held for the Direct Sale. The filing also flags risks including dependence on key customers, cyclicality in rail and transit markets, international operations (including a large India project), leverage covenants, and pending litigation, notably the Siemens patent case and a Department of Justice-related class action over employee non-compete allegations. Backlog was about $4.5 billion at December 31, 2018, and year-end 2018 management stated the company had 18,000 full-time employees.
Feb 27, 2019
2017
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2017
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2017 net sales of $3,881.8 million, up from $2,931.2 million in 2016, driven mainly by acquisitions of $1,183.2 million, the majority related to the Faiveley Transport acquisition. Net income attributable to Wabtec shareholders was $262.3 million in 2017, down from $304.9 million in 2016. Income from operations fell to $421.7 million from $458.4 million, and cost of sales rose to 72.5% of sales from 68.4%, reflecting product mix, $44.5 million of higher project adjustments and $11.8 million of restructuring and integration costs. Diluted EPS was $2.72 versus $3.34. Backlog was about $4.6 billion at December 31, 2017, up from $3.98 billion a year earlier. Cash flow weakened. Operating cash flow was $188.8 million, compared with $450.5 million in 2016, due to unfavorable working capital and lower net income. Cash used in investing activities was $275.7 million, which included $921.5 million of net cash paid for acquisitions, partly offset by $734.0 million released from escrow related to Faiveley. Total debt was $1,870.5 million at year-end, versus $1,892.8 million a year earlier, and cash was $233.4 million. Dividends per share rose to $0.44 from $0.36, and no shares were repurchased in 2017. The filing highlights a diversified business: the Transit Segment accounted for 64% of 2017 sales and the Freight Segment for 36%. Sales outside the U.S. were about 66% of the total, and aftermarket sales were about 56%. Key risks include the Positive Train Control deadline of December 31, 2018, the Siemens patent lawsuit, the Denver Transit dispute involving Xorail with damages alleged at $36.8 million through July 31, 2017, and asbestos claims against subsidiary Railroad Friction Products Corporation.
Feb 26, 2018
2016
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2016
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2016 net sales of $2.93 billion, down from $3.31 billion in 2015, as lower Freight Segment demand from reduced freight car and locomotive builds offset growth in the Transit Segment, which was boosted by acquisitions. Income from operations fell to $458.4 million from $607.6 million, and net income attributable to Wabtec shareholders was $304.9 million, compared with $398.6 million in 2015. Diluted earnings per share were $3.34, versus $4.10 a year earlier. Aftermarket sales represented about 59% of 2016 total sales, and about 54% of sales came from outside the U.S. The defining event of the year was the acquisition of majority ownership of Faiveley Transport S.A., completed November 30, 2016, for a purchase price the filing describes as approximately $1.7 billion for 100% of the shares, including assumed debt. Total assets rose to $6.58 billion from $3.23 billion, goodwill to $2.08 billion, and total debt to $1.89 billion from $692.2 million. The company issued $750.0 million of 3.450% senior notes due 2026 to help fund the cash portion of the transaction, and it continued a tender offer for the remaining Faiveley shares, with the initial closing on February 3, 2017 adding a further 27.5% stake. Cash from operations was $449.3 million in 2016, essentially flat with $448.3 million in 2015. Investing outflows of $775.1 million reflected acquisitions and $744.7 million of cash deposited in escrow for the pending tender offer. The company returned cash to shareholders through $212.2 million of stock repurchases and $32.4 million of dividends, and backlog stood at about $4.0 billion at December 31, 2016.
Feb 28, 2017
2015
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2015
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2015 net sales of $3,307,998 thousand (about $3.31 billion), up from $3,044,454 thousand in 2014, and net income attributable to Wabtec shareholders of $398,628 thousand, up from $351,680 thousand. Income from operations was $607,567 thousand, or 18.4% of sales, compared with $527,109 thousand, or 17.3%, in 2014. The Freight Segment accounted for 62% of 2015 sales and the Transit Segment for 38%. Aftermarket parts and services represented about 62% of total sales, and sales outside the U.S. were about 47%. Diluted earnings per share were $4.10, compared with $3.62 in 2014. Cash provided by operating activities was $448.3 million in 2015, versus $472.4 million in 2014. Total debt rose to $695.7 million at December 31, 2015, from $521.2 million, driven by $445.0 million drawn on the revolving credit facility, and cash fell to $226.2 million from $425.8 million. The company repurchased $387.8 million of stock in 2015 under its authorization. Backlog was about $2.1 billion at year-end 2015, versus $2.3 billion a year earlier. The filing describes a proposed acquisition of Faiveley Transport S.A. for a total purchase price of about $1.8 billion including assumed debt, with the cash portion funded by cash on hand, existing credit facilities and potentially other debt financing. Closing is subject to regulatory requirements, and the timing of completion is unknown. Wabtec also set aside €186.9 million in escrow for the transaction before year-end 2015.
Feb 19, 2016
2014
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2014
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2014 net sales of $3.04 billion, up from $2.57 billion in 2013, and net income attributable to Wabtec shareholders of $351.7 million, up from $292.2 million. Income from operations rose to $527.1 million, or 17.3% of sales, from $437.3 million, or 17.0%. The Freight Segment accounted for 57% of 2014 sales and the Transit Segment for 43%. Acquisitions contributed $229.4 million of sales growth, and the company completed several acquisitions in 2014 including Fandstan, Dia-Frag and C2CE, plus Railroad Controls L.P. in February 2015. Aftermarket sales and services represented about 61% of total sales, and sales to customers outside the U.S. were about 50%. Year-end backlog was $2.32 billion, compared with $1.69 billion at December 31, 2013. Operating cash flow rose to $472.4 million from $235.7 million, and cash and cash equivalents ended the year at $425.8 million. Total debt was $521.2 million at year-end, including $250.0 million of 4.375% senior notes due 2023 and $270.0 million drawn on the revolving credit facility. Management flagged Positive Train Control (PTC) as a significant revenue driver, with about $290 million of 2014 revenue from PTC projects, and noted that the December 31, 2015 PTC deadline could be extended, which would affect industry spending. Key risks cited in the filing include customer concentration (top five customers were 17% of net sales), cyclicality in rail and transit markets, currency and interest rate exposure, asbestos litigation tied to subsidiary Railroad Friction Products Corporation, and labor agreements, with about 28% of employees unionized.
Feb 20, 2015
2013
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2013
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2013 net sales of $2,566.4 million, up from $2,391.1 million in 2012, and net income attributable to Wabtec shareholders of $292.2 million, or $3.01 per diluted share, versus $251.7 million in 2012. Income from operations rose to $437.3 million, or 17.0% of sales, from $392.3 million, or 16.4% of sales. The Transit Segment drove growth, with sales up 31.4% to $1,168.3 million, while the Freight Segment declined 6.9% to $1,398.1 million. Acquisitions contributed $157.9 million of sales in 2013. Backlog was about $1.69 billion at December 31, 2013, compared with $1.66 billion a year earlier. Aftermarket sales were about 57% of 2013 total sales, and sales to customers outside the U.S. were about 48%. Cash from operations was $235.7 million, and capital expenditures were $41.2 million. Total debt rose to $450.7 million, including $250.0 million of 4.375% senior notes due 2023 issued in August 2013, and cash was $285.8 million at year end. The filing highlights the Positive Train Control (PTC) mandate, with a December 31, 2015 deadline. PTC generated about $235 million of revenue in 2013, and the filing notes that railroads have said they cannot meet the deadline, though no change has been made to it. The company also disclosed a definitive agreement signed February 12, 2014 to acquire Fandstan Electric Group Ltd. for approximately $215.0 million, with closing expected in the first quarter of 2014.
Feb 21, 2014
2012
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2012
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2012 net sales of $2,391.1 million, up from $1,967.6 million in 2011, and net income attributable to Wabtec shareholders of $251.7 million, or $5.19 per diluted share, versus $170.1 million, or $3.51 per diluted share, in 2011. Income from operations rose to $392.3 million, or 16.4% of sales, from $270.7 million, or 13.8% of sales. The Freight Segment accounted for 63% of 2012 sales and the Transit Segment for 37%. Aftermarket sales and services represented about 54% of total sales, and sales to customers outside the U.S. were about 50%. Growth was driven by higher Freight Segment sales of $1,501.9 million, up 24.1%, and Transit Segment sales of $889.2 million, up 17.4%, along with $138.3 million of sales from acquisitions. The company's backlog was $1.66 billion at December 31, 2012, up from $1.55 billion a year earlier. Positive train control (PTC) work generated about $215 million of revenue in 2012, and the filing notes that a House committee has proposed extending the December 31, 2015 PTC deadline, which could affect industry spending on the technology. Balance sheet and cash flow data show cash and cash equivalents of $215.8 million and total debt of $317.9 million at year-end 2012, compared with $395.9 million a year earlier. Cash provided by operating activities was $237.7 million, and the company repurchased $46.6 million of stock during 2012. The $150.0 million 6.875% senior notes due August 2013 are classified as long-term because the company states it intends to refinance them under its $600 million 2011 Refinancing Credit Agreement, which expires in November 2016. Subsequent to year-end, the company acquired Napier Turbochargers Ltd. on January 31, 2013 for a net purchase price of approximately $112.5 million.
Feb 22, 2013
2011
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2011
Westinghouse Air Brake Technologies Corporation (doing business as Wabtec Corporation) reported 2011 net sales of $1,967.6 million, up from $1,507.0 million in 2010, and net income attributable to Wabtec shareholders of $170.1 million, or $3.51 per diluted share, compared with $123.1 million, or $2.56 per diluted share, in 2010. The Freight Group accounted for 61% of 2011 sales and the Transit Group for 39%. Aftermarket sales were about 57% of total sales, and sales to customers outside the U.S. were about 47%. Income from operations rose to $270.7 million, or 13.8% of sales, from $202.8 million, or 13.5%, in 2010. Management attributed the growth to higher freight sales volume, acquisitions contributing $128.3 million of sales, and favorable foreign exchange, partly offset by an $18.1 million charge related to a court ruling in the Faiveley litigation. Backlog stood at about $1.55 billion at December 31, 2011, up from $1.08 billion a year earlier. Operating cash flow was $248.6 million, compared with $176.1 million in 2010, and cash rose to $285.6 million at year-end. Total debt was $395.9 million, consisting of $150.0 million of 6.875% senior notes due 2013 and $245.0 million drawn on the revolving credit facility. In November 2011 the company replaced its prior facilities with a $600 million five-year revolving credit agreement that expires in November 2016. The filing identifies positive train control (PTC) as a significant growth driver, with about $125 million of 2011 sales tied to PTC projects. It also notes risks including customer concentration (top five customers accounted for 17% of net sales), international operations, asbestos litigation involving subsidiary RFPC, and possible changes to the PTC deadline. Management stated that asbestos-related cases are not expected to be material.
Feb 24, 2012
2010
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2010
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2010 net sales of $1,507.0 million, up from $1,401.6 million in 2009, and net income attributable to Wabtec shareholders of $123.1 million, or $2.56 per diluted share, versus $115.1 million or $2.39 in 2009. The Freight Group drove growth, with sales rising $196.1 million or 33.3%, partly from acquisitions, while the Transit Group's sales fell $90.7 million or 11.2%. Aftermarket sales and services were about 55% of total sales, and about 46% of sales went to customers outside the U.S. Income from operations rose to $202.8 million, or 13.5% of sales, from $180.0 million in 2009. Cash flow from operations was $176.1 million in 2010, and the company spent $138.2 million net on acquisitions, including Xorail, G&B, Bach-Simpson and Swiger Coil Systems. Total debt was $422.1 million at year-end, against cash of $236.9 million, and the company stated it was in compliance with its credit agreement covenants. Backlog was about $1.08 billion at December 31, 2010, of which about $589.9 million was expected to be delivered in 2011. The filing also highlights ongoing risks: asbestos claims against the subsidiary RFPC, which management believes will not be material, a pending trade secret lawsuit brought by Faiveley entities with trial scheduled for June 13, 2011 and a claim of $17.2 million, labor agreements covering about 28% of employees, and reliance on key customers, the top five of which accounted for 18% of net sales.
Feb 25, 2011
2009
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2009
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2009 net sales of $1,401.6 million, down from $1,574.8 million in 2008, as the global recession reduced rail traffic and Freight Group demand. Income from operations was $180.0 million compared with $212.5 million in 2008, and net income attributable to Wabtec shareholders was $115.1 million, or $2.39 per diluted share, versus $130.6 million, or $2.66 per diluted share, a year earlier. The decline was attributed to lower Freight Group sales and severance and downsizing costs, partly offset by cost-saving initiatives and a lower effective tax rate of 29.6% (36.1% in 2008). Freight Group sales fell $185.2 million, while Transit Group sales rose $12.0 million to $813.2 million, and aftermarket sales represented about 54% of total 2009 sales. Balance sheet and cash flow were comparatively steady. Operating cash flow was $160.5 million, capital expenditures were $18.3 million, and cash rose to $188.7 million at year-end. Total debt was $391.8 million, including $150.0 million of 6.875% senior notes due 2013, and the company repurchased 669,700 shares during 2009. Management expects challenging freight rail conditions in 2010 and a generally stable passenger transit market, and it may take further cost-reduction actions. Key risks disclosed include customer concentration (top five customers were 22% of net sales), labor agreements expiring in 2010 covering about 21% of the workforce, asbestos litigation through subsidiary RFPC, and an arbitration award requiring a $3.9 million royalty payment to Faiveley Transport Malmo AB.
Feb 24, 2010
2008-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 2008
Westinghouse Air Brake Technologies Corporation filed this Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 2008. The filing states that its sole purpose is to correct the signature page, which lacked the signatures of the principal financial officer and principal accounting officer. It also adds new certifications by the principal executive officer and principal financial officer as Exhibits 31.1, 31.2 and 32.1. The amendment does not update or modify disclosures in the original Form 10-K, which the company filed on May 14, 2009. The document identifies the registrant as a Delaware corporation headquartered in Wilmerding, Pennsylvania, with common stock listed on the New York Stock Exchange and a large accelerated filer status. The registrant estimates the aggregate market value of voting shares held by non-affiliates as of June 30, 2008 at approximately $2.2 billion. As of February 23, 2009, 47,996,857 shares of common stock were outstanding. Part III information is incorporated by reference from the proxy statement for the May 13, 2009 annual meeting. The filing itself contains no financial statements, operating results or balance sheet figures. Its exhibit index references items such as a Refinancing Credit Agreement dated November 4, 2008, a $150,000,000 aggregate principal amount of 6.875% Notes due 2013, and several stock purchase agreements from 2006 through 2008. Investors seeking the company's financial results would need to consult the original Form 10-K.
May 14, 2009
2008
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2008
Westinghouse Air Brake Technologies Corporation (Wabtec), which does business as Wabtec Corporation, reported 2008 net sales of $1,574.7 million, up from $1,360.1 million in 2007, and net income of $130.6 million, or $2.67 per diluted share, versus $109.6 million, or $2.23 per diluted share, a year earlier. Income from operations rose to $212.5 million (13.5% of sales) from $179.7 million (13.2%). Growth was driven by brake products, transit authority contracts, remanufacturing, heat exchangers, acquisitions and international expansion. The Transit Group grew to $801.2 million in sales, slightly exceeding the Freight Group's $773.5 million. Aftermarket sales represented about 53% of total 2008 sales, which the filing describes as less cyclical than original equipment sales. Cash flow from operations was $159.4 million, but investing activities used $417.4 million, mainly for the Standard Car Truck acquisition ($302.9 million net of cash received) and POLI S.p.A. ($82.3 million). Total debt rose to $387.1 million from $150.3 million, funded by a new 2008 Refinancing Credit Agreement with a $300 million revolver and a $200 million term loan, and cash fell to $141.8 million from $234.7 million. The company repurchased $45.8 million of stock during 2008. Backlog was $1.06 billion at December 31, 2008, with $565.6 million expected to deliver in 2009. Key risks flagged in the filing include exposure to cyclical freight and transit markets, dependence on key customers (top five accounted for 27% of net sales), asbestos claims at subsidiary RFPC that management believes will not be material, and the pending Faiveley Transport arbitration in which Faiveley alleged $128 million in damages, which the company calls grossly overstated. Management expects freight conditions to slow in 2009 and plans cost reductions including plant consolidations and workforce reductions.
Feb 27, 2009
2007
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2007
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2007 net sales of $1,360.1 million, up from $1,087.6 million in 2006, and net income of $109.6 million, or $2.23 per diluted share, versus $84.8 million, or $1.73 per diluted share, in 2006. Income from operations rose to $179.7 million (13.2% of sales) from $130.2 million (12.0% of sales). The Transit Group drove much of the growth, with sales rising to $625.9 million from $378.3 million, while the Freight Group grew to $734.2 million from $709.4 million. The company describes itself as one of the world's largest providers of technology-based equipment for the rail industry, with roughly 50% North American market share in its primary braking equipment and aftermarket sales over 50% of total 2007 sales. Backlog was $1.0 billion at December 31, 2007, essentially flat year over year, with the Transit Group's backlog offsetting a decline in the Freight Group's. Operating cash flow was $142.5 million in 2007 versus $151.0 million in 2006. Cash grew to $234.7 million, and total debt was $150.3 million, consisting mainly of $150 million of 6 7/8% senior notes due 2013. Shareholders' equity increased to $617.3 million from $469.9 million. The board authorized an additional $100 million share repurchase program on February 20, 2008. Key risks disclosed include dependence on a limited number of key customers (top five accounted for 23% of 2007 net sales), cyclicality in rail and transit markets, international exposure (about 40% of sales outside the U.S.), asbestos litigation tied to subsidiary Railroad Friction Products Corporation, and a pending Faiveley Transport arbitration and federal court proceeding seeking to restrict the sale of certain transit components. Management states it does not believe these matters will have a material adverse effect.
Feb 29, 2008
2006
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2006
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported 2006 net sales of $1,087.6 million, up from $1,034.0 million in 2005, and net income of $84.8 million, or $1.73 per diluted share, compared with $55.8 million, or $1.17 per diluted share, in 2005. Income from operations rose to $129.6 million (11.9% of sales) from $101.3 million (9.8% of sales). The filing attributes the improvement mainly to higher sales, better operating performance, lower interest expense of $7.1 million, and a lower effective tax rate of 31.7% versus 35.6%, which reflected the reversal of valuation allowances on deferred state tax assets. Results were partly offset by a $6.8 million pre-tax restructuring charge tied to downsizing two Canadian plants and by $5.9 million of higher stock-based compensation expense. The Freight Group generated $709.4 million of 2006 sales (65% of the total) and the Transit Group $378.3 million (35%). Aftermarket sales represented over 50% of total sales, and about 22% of sales came from outside North America. Cash provided by operating activities rose to $151.0 million from $84.3 million, and cash ended the year at $188.0 million. The company repurchased 673,900 shares for $18.9 million under a $50 million authorization approved in July 2006, and it acquired Schaefer Equipment and Becorit GmbH in the fourth quarter for a combined $87.2 million net of cash received. Total debt remained $150 million of 6 7/8% senior notes due 2013, and the company reported $151.1 million of available bank borrowing capacity at year-end. The filing also discloses risk items investors should weigh, including asbestos claims against subsidiary Railroad Friction Products Corporation, which management does not believe will be material, and a dispute over Acela Express brake disc cracks in which Bombardier has alleged about $38 million of damages with assigned claims of about $17 million and $10 million. Management believes Wabtec does not have material legal liability in that matter. Backlog at December 31, 2006 was $1,041.2 million, of which $539.7 million was expected to deliver in 2007.
Mar 1, 2007
2005
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2005
Westinghouse Air Brake Technologies Corporation, doing business as Wabtec Corporation, reported record-level results for 2005, with net sales rising to $1.034 billion from $822.0 million in 2004, an increase of 25.8%. Income from operations reached $101.3 million (9.8% of sales) versus $55.4 million (6.7% of sales) in 2004, and net income was $55.8 million, or $1.17 per diluted share, compared with $32.4 million, or $0.71 per diluted share, a year earlier. Management attributed the growth to higher freight car deliveries, strong locomotive component demand, the acquisition of Rutgers Rail's friction products business (CoFren), and a locomotive module contract ramp-up. Freight Group sales were $798.4 million and Transit Group sales were $235.6 million, and aftermarket sales represented about 50% of total sales. Balance sheet and cash flow strengthened over the year. Cash rose to $141.4 million, operating cash flow was $84.1 million, and total debt was steady at $150 million in 6 7/8% senior notes due 2013, with the revolving credit facility undrawn and roughly $148.6 million of available borrowing capacity. Shareholders' equity increased to $379.2 million. The company stated that 2006 demand for locomotives, freight cars and transit vehicles should be about the same as 2005, while aftermarket demand should remain strong. The filing also highlights risks that investors should weigh. Key customers accounted for 24% of net sales, 41% of employees are unionized with contracts running through 2006, 2007 and 2009, and asbestos claims against subsidiary Railroad Friction Products Corporation continue to rise in number. The company disclosed an internal investigation, begun in March 2006, into disbursements by its Indian subsidiary Pioneer Friction Limited that may violate applicable laws; management described the amounts as inconsequential and not material, and no reserve was recorded. The new CEO, Albert J. Neupaver, joined on February 1, 2006.
Mar 16, 2006
2004
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2004
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2004 net sales of $822.0 million, up 14.5% from $717.9 million in 2003, and net income of $32.4 million, or $0.71 per diluted share, compared with $22.7 million, or $0.52, in 2003. Income from operations rose to $55.4 million from $49.8 million. The Freight Group accounted for 71% of net sales and the Transit Group for 29%, and aftermarket sales represented about 54% of total sales. Management attributed the sales increase to higher freight car, locomotive and transit car deliveries, and noted that gross profit as a percentage of sales fell to 25% from 26.4% due to higher raw material costs, retiree medical costs and foreign exchange effects on Canadian operations. Cash generation and balance sheet improvement were highlighted. Operating cash flow was $52.9 million, and the company reduced debt, net of cash, by $65 million during 2004. Total debt fell to $150.1 million at year-end from $190.2 million, and cash rose to $95.3 million. The filing states that net debt to book capitalization declined from 73% at December 31, 2000 to 15% at December 31, 2004. Shareholders' equity increased to $312.4 million. Looking ahead, management expects 2005 freight car deliveries of about 55,000 units and locomotive deliveries of about 1,100 units, and a slight increase in transit car deliveries to about 725 units, with transit deliveries expected to rise to 950 units in 2006 on New York City orders. The company completed the acquisition of Rütgers Rail S.p.A.'s assets (CoFren S.r.l.) on February 1, 2005 for $36.6 million in cash. Risks cited include raw material cost increases, particularly steel, higher medical and insurance costs, and foreign currency fluctuations. The filing also discloses a $3.2 million liability to GETS-GS, which the company disputes and intends to contest.
Mar 16, 2005
2003-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 2003
Westinghouse Air Brake Technologies Corporation (filed as Westinghouse Air Brake Technologies Corporation; now Wabtec) filed this Amendment No. 1 to its Form 10-K for the fiscal year ended December 31, 2003. The amendment corrects the Ernst & Young LLP report reproduced on EDGAR, which omitted the city and state where it was issued, and adds a new Ernst & Young consent (Exhibit 23.1) and new certifications (Exhibits 31.2 and 32.2). The financial statements themselves are stated not to have been amended in any manner. The underlying 2003 results show net sales of $717.9 million, up from $696.2 million in 2002, with income from operations of $51.7 million versus $47.5 million, and net income of $22.7 million, compared with a net loss of $45.5 million in 2002 that reflected a $61.7 million after-tax goodwill write-down. Diluted earnings per share were $0.52. The Freight Group contributed $522.3 million of external sales and $76.0 million of operating income, while the Transit Group contributed $195.6 million of sales and $0.2 million of operating income. Balance sheet and cash flow changes were significant. Cash rose to $70.3 million from $19.2 million, and long-term debt was $190.2 million, including $150 million of 6.875% Senior Notes due 2013 issued in August 2003. Shareholders' equity increased to $248.3 million from $199.3 million. In January 2004 the company entered into a $175 million five-year Refinancing Credit Agreement.
May 14, 2004
2003
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2003
Westinghouse Air Brake Technologies Corporation (doing business as Wabtec Corporation) reported 2003 net sales of $717.9 million, up from $696.2 million in 2002, and net income of $22.7 million, compared with a net loss of $45.5 million in 2002 that included a $61.7 million after-tax goodwill write-down. Income from operations rose to $51.7 million from $47.5 million, and gross margin increased to 26.4% from 25.8%. The Freight Group accounted for $522.3 million of sales and the Transit Group for $195.6 million; the Transit Group's sales fell 23% as major contracts completed in 2002. Cash generation improved, with operating cash flow of $55.9 million compared with $15.7 million in 2002. Total debt declined to $190.2 million at year-end 2003 from $195.1 million, and cash rose to $70.3 million. The company issued $150 million of 6.875% senior notes due 2013 and, in January 2004, refinanced its bank credit agreement into a $175 million five-year revolving facility. Debt as a percentage of book capitalization is stated as 43% at December 31, 2003, down from 73% at December 31, 2000. Management expects demand to improve in 2004 for components for new freight cars and locomotives, with the industry expected to deliver about 37,500 new freight cars and about 1,050 new locomotives, while aftermarket demand is not expected to grow. Stated risks include rising steel costs, higher medical and insurance premiums, foreign currency fluctuations, and the outcome of a pending GETS-GS motion seeking damages, along with asbestos-related claims against a subsidiary.
Mar 15, 2004
2002
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2002
Westinghouse Air Brake Technologies Corporation (Wabtec), a Delaware corporation based in Wilmerding, Pa., reported net sales of $696.2 million for 2002, down 11.2% from $783.7 million in 2001, as weak freight and transit demand and the completion of a major New York City transit contract reduced sales. The Freight Group accounted for $443.4 million and the Transit Group for $252.8 million. Income from operations fell to $47.5 million from $54.1 million, and interest expense dropped to $16.2 million from $33.5 million, helped by debt reduction. The company reported a net loss of $45.5 million, or $(1.04) per diluted share, driven by a $61.7 million after-tax cumulative effect charge for goodwill written off under SFAS No. 142. Income from continuing operations was $17.5 million, or $0.40 per diluted share. Cash flow weakened sharply, with operating cash flow of $15.7 million versus $119.1 million in 2001, which had included proceeds tied to the 2001 sale of assets to GE Transportation Systems for $238 million. Total debt declined to $195.2 million from $241.9 million after the $175 million 9.375% Senior Notes were redeemed in July 2002, and the revolving credit agreement balance rose to $189.7 million. Shareholders' equity fell to $199.3 million from $245.3 million. The company expects 2003 industry deliveries of about 700 new locomotives and 22,000 new freight cars, and says the credit facility expires in November 2004. The filing states that the company's products are on virtually all U.S. locomotives, freight cars and passenger transit vehicles, and that it believes it holds a 50% or greater North American market share for its primary braking equipment. About 54% of sales are aftermarket. One Transit Group customer accounted for 11% of consolidated sales in both 2002 and 2001.
Mar 31, 2003
2001-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 2001
This amended annual report (Form 10-K/A) of Westinghouse Air Brake Technologies Corporation, now Wabtec Corporation, for the fiscal year ended December 31, 2001 is filed to include two employee benefit plan annual reports on Form 11-K as exhibits. The cover page reports 43,288,935 shares of common stock outstanding as of March 27, 2002, with an aggregate market value for non-affiliate shares of approximately $488.4 million. The filing does not include the company's own financial statements. Its substance is the plan-level financial information in the exhibits. The Westinghouse Air Brake Company Employee Stock Ownership Plan (ESOP) had net assets available for benefits of $11,220,281 at December 31, 2001, compared with $11,656,758 a year earlier. The plan's holdings consisted of 9,171,769 shares of company common stock valued at $112,812,758. The Board approved termination of the ESOP effective July 31, 2000, and the plan is presented on a liquidation basis. The plan's debt obligation to the company was extinguished on June 3, 2002, in connection with the return of the unallocated shares, with a final settlement value of approximately $105,000,000. The Westinghouse Air Brake Technologies Corporation Savings Plan reported net assets available for plan benefits of $103,696,081 at December 31, 2001, compared with $105,124,834 at December 31, 2000. The plan recorded a net decrease of $1,428,753 in 2001, driven by net depreciation in fair value of investments of $13,086,158. Employer contributions rose to $7,530,872 in 2001 from $726,207 in 2000.
Jul 1, 2002
2001
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 2001
Westinghouse Air Brake Technologies Corporation (Wabtec) reported 2001 net sales of $783.7 million, down 3.4% from $811.2 million in 2000, as weak North American freight car and locomotive demand offset growth in the Transit Group. Net income rose to $61.8 million, or $1.43 per diluted share, from $25.4 million, or $0.59 per diluted share, but the increase was driven by $47.8 million of income from discontinued operations, including a $41.5 million gain on the sale of certain assets to GE Transportation Systems. Excluding non-recurring and non-operating items, earnings from continuing operations were $0.49 per diluted share in 2001 versus $0.82 in 2000. The company used the $240 million GETS sale proceeds and operating cash flow of $119.1 million to reduce long-term debt by $298.3 million, bringing total debt to $241.9 million from $540.2 million at year-end 2000. Operating income fell to $54.1 million from $77.8 million, and the company expects 2002 interest expense of about $22 million and an ongoing effective tax rate of approximately 35-36%. Management expects industry deliveries of about 700 new locomotives and about 20,000 new freight cars in 2002, well below historical averages, while transit deliveries are expected to be about 1,230 units. At year-end 2001, backlog stood at $513.0 million, of which $296.5 million was expected to be recognized in 2002. Key risks include customer concentration (one customer accounted for 11% of 2001 consolidated sales), a credit agreement that restricts dividends, and a Freight Group market that the company describes as highly dependent on railroad capital spending cycles.
Apr 1, 2002
2000
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 30, 2000
Westinghouse Air Brake Technologies Corporation (filing name; doing business as Wabtec Corporation) reported net sales of $1,027,976 thousand ($1.03 billion) for 2000, down 8.3% from $1.1 billion in 1999, as weak North American freight car and locomotive deliveries and a severe downturn in the locomotive overhaul market reduced Freight Group sales. Transit Group sales rose to $278.3 million from $238.2 million, driven by shipments under the MTA contract. Net income fell to $25.4 million, or $0.59 per diluted share, from $36.6 million, or $0.83 per diluted share, in 1999. Results include a $29.1 million merger and restructuring charge, a $4.4 million gain on the sale of a product line, a $5.1 million non-cash write-off of a deferred tax asset tied to ESOP termination, and a $2 million legal settlement. Excluding these items, earnings per diluted share would have been $1.10 in 2000 versus $1.74 in 1999. Income from operations was $89.5 million compared with $116.0 million in 1999. Operating cash flow was $60.2 million, down from $77.4 million, and capital expenditures were $26.3 million. Total debt was $540.2 million at year-end 2000, and shareholders' equity rose to $196.4 million. The company is described as highly leveraged, with its credit agreement limiting dividends and a $75 million share repurchase plan adopted. Management expects the merger and restructuring plan's total pre-tax charges to reach $84 million, with a remaining $5 million expected in 2001, and expects 2001 industry deliveries of about 1,200 locomotives and 45,000 freight cars. The company's backlog fell to $852.4 million at December 31, 2000, from $1.27 billion a year earlier, with $427.0 million scheduled for 2001. The filing notes that backlog can be delayed or cancelled and should not be relied on as an indicator of future performance. The company's net sales outside the United States were about 27% in 2000, and it continues to pursue cost reductions, international growth, and electronics-driven product development.
Mar 28, 2001
1999-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 1999
This Form 10-K/A for fiscal year ended December 31, 1999 by Westinghouse Air Brake Technologies Corporation does not contain the company's full annual report. Instead, it amends the filing solely to set forth Exhibit 99, which consists of the financial statements and supplemental schedules of the Westinghouse Air Brake Company Employee Stock Ownership Plan (the Plan), audited by Arthur Andersen LLP with a report dated June 19, 2000. The Plan's statement of net assets available for benefits shows total net assets of $27,404,961 at December 31, 1999, down from $89,717,036 at December 31, 1998, with a net decrease of $62,312,075 for 1999. The decline is driven primarily by the Plan's investment in company common stock, which is valued at $164,613,198 at year-end 1999 versus $227,219,221 a year earlier. The Plan recorded net depreciation in fair value of investments of $62,101,218 in 1999. The Plan holds 9,273,983 shares of Wabtec common stock, and the filing notes the stock price fell from $17.75 per share at December 31, 1999 to $10.94 on June 19, 2000. The Plan's loan payable to the employer totals $137,213,562, and the filing states that management is evaluating alternatives to continuing the plan under its current structure due to the stock price depreciation. For investors, the key takeaway is that this amendment concerns an employee benefit plan rather than the company's operating results. It discloses the ESOP's sizable exposure to the company's stock price and its outstanding employer-funded loan, but it does not report Wabtec's consolidated revenues, earnings, or balance sheet.
Jun 28, 2000
1998-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 1998
This Form 10-K/A amends Exhibit 99 of the annual report of Westinghouse Air Brake Company (now Westinghouse Air Brake Technologies Corporation) for the fiscal year ended December 31, 1998. The exhibit contains the audited financial statements and supplemental schedules of the Westinghouse Air Brake Company Employee Stock Ownership Plan (the Plan), a leveraged ESOP, rather than the company's consolidated results. The auditor's report is dated May 21, 1999. At December 31, 1998, the Plan's net assets available for benefits were $89,717,036, down from $99,723,262 at December 31, 1997. Nearly all Plan assets consist of 9,297,783 shares of company common stock, carried at a market value of $227,219,221. Of these shares, 8,552,796 were unallocated and held in trust as collateral for a $137,507,561 loan payable to the employer. In 1998, the Plan recorded a net depreciation in fair value of investments of $11,087,491, and employer contributions totaled $12,366,102. The filing also discloses a subsequent event: on June 2, 1999, the company agreed to merge with MotivePower Industries, Inc., with MotivePower as the surviving corporation. Each company share would convert into 1.3 MotivePower shares, and company stockholders would own approximately 55% of MotivePower's common stock. The merger is intended to be tax-free and will be accounted for as a pooling of interests, subject to stockholder approvals.
Jun 30, 1999
1998
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 1998
Westinghouse Air Brake Company, North America's largest manufacturer of value-added equipment for locomotives, railway freight cars and passenger transit vehicles, reported net sales of $670.9 million for 1998, up 18.9% from $564.4 million in 1997. Income from operations rose to $104.7 million from $90.0 million, and net income was $41.7 million, or $1.62 diluted EPS, after a $3.3 million extraordinary charge for write-off of deferred financing costs. Diluted EPS before the extraordinary item was $1.75, up 20.7%. Growth was driven largely by acquisitions, including Rockwell's railroad electronics business for approximately $80.0 million in October 1998, with acquisitions contributing $63.7 million of incremental 1998 revenue. The balance sheet shows total debt rising to $467.8 million from $364.9 million, and shareholders' equity remained negative at $(33.9) million. Net cash provided by operating activities fell to $42.1 million from $67.0 million, which the company attributed to higher receivables and inventories tied to growth and acquired businesses. Backlog reached $460.9 million at year-end 1998, up from $376.3 million, with $325.0 million attributable to passenger transit products. Management expects 1999 freight car deliveries to be lower than 1998, though railroad OEM and aftermarket sales are expected to remain reasonably strong. Investors should note the company's leverage: it states it will remain leveraged to a significant extent, and in January 1999 it issued $75 million of additional 9 3/8% Senior Notes due 2005 to repay the unsecured credit facility, Comet notes and part of the RRE acquisition debt. Management owns approximately 31% of common stock and the ESOP holds additional shares. A GE Harris patent infringement suit filed February 12, 1999 is at an early stage, and the company believes its technology does not infringe.
Mar 25, 1999
1997-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 1997
This Form 10-K/A for the fiscal year ended December 31, 1997 amends Exhibit 99 of Westinghouse Air Brake Company (now Westinghouse Air Brake Technologies Corporation) to set forth the financial statements of its Employee Stock Ownership Plan (ESOP). The filing contains no operating results, balance sheet, or business discussion for the company itself. It presents the plan's audited statements, with Arthur Andersen LLP's opinion dated June 5, 1998, along with Schedules I and II. The ESOP's net assets available for benefits were $99.7 million at December 31, 1997, up from a deficit of $(21.7) million at December 31, 1996. The plan's largest asset is its investment in company common stock, valued at $238.8 million at market value on 9,318,341 shares. That is up from $117.8 million at the end of 1996. The plan owed $139.1 million on a loan payable to the employer, which was used to buy the shares at $15 per share under a $140.04 million term loan bearing 8.5% interest. The plan held approximately 28% of the company's common stock at year-end 1997, compared with 25% at year-end 1996. Employer contributions were $11.9 million in 1997. For investors, the main points are the plan's large stake in the company and the sharp rise in the stock's market value, which produced net appreciation of $121.2 million in 1997. The filing reports no reportable transactions in 1997 in Schedule II.
Jun 29, 1998
1997
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 1997
Westinghouse Air Brake Company (WABCO), headquartered in Wilmerding, Pennsylvania, reported net sales of $564.4 million for 1997, up 24.5% from $453.5 million in 1996, with net income of $37.3 million ($1.42 diluted EPS) versus $32.7 million ($1.15) a year earlier. The company describes itself as North America's largest manufacturer of value-added equipment for locomotives, railway freight cars and passenger transit vehicles. Growth was driven by acquisitions (Vapor, Stone, Thermo King, HP, Futuris) and new products; the acquisitions contributed $85.5 million of the sales increase. The transit segment grew to $174.3 million in sales, and backlog reached $376.3 million at year-end 1997 ($295.1 million of it transit), rising to $400.1 million as of February 28, 1998. Balance sheet and capital structure are the key investor watch items. Total debt was $364.9 million at December 31, 1997, and shareholders' equity was a deficit of $(79.3) million, reflecting the 1997 repurchase of 4 million shares from SIH for $44 million plus about $2 million in fees, funded by borrowings. Operating cash flow was $67.0 million in 1997, and gross capital expenditures were $29.6 million, with about $28 million expected for 1998. The company states that it will remain leveraged to a significant extent and that its debt service obligations will continue to be substantial. Environmental and legal exposures are described as largely indemnified by American Standard Inc. and covered by an insurance policy from Manville Corporation, with a $12.5 million aggregate limit. Management reports no pending litigation expected to have a material adverse effect.
Mar 20, 1998
1996-A
Westinghouse Air Brake Technologies Annual Report (Amendment), Year Ended Dec 31, 1996
This Form 10-K/A is an amendment to the annual report of Westinghouse Air Brake Company, now Westinghouse Air Brake Technologies Corporation (WAB), for the fiscal period ended December 31, 1996. The company is a Delaware corporation headquartered at 1001 Air Brake Avenue, Wilmerding, Pennsylvania, and its common stock, par value $.01 per share, is registered on the New York Stock Exchange. The filing was made on June 30, 1997. The filing states that its sole purpose is to amend Exhibit 28 to the Form 10-K. The full text of Exhibit 28 is set forth in this amendment. The filing does not contain other sections of the annual report, so it does not present operating results, financial statements, or management commentary in its own text. For investors, the key takeaway is that this amendment changes only Exhibit 28, and the filing itself gives no financial or business detail beyond the registrant's identification and the stated purpose of the amendment.
Jun 30, 1997
1996
Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 31, 1996
Westinghouse Air Brake Company (WABCO), now Westinghouse Air Brake Technologies Corporation, reported net sales of $453.5 million for 1996, up from $425.0 million in 1995, with the Vapor and Futuris acquisitions contributing $40.7 million of the increase. Operating income fell to $79.7 million from $89.3 million, reflecting lower margins in the locomotive pneumatics and freight car divisions and higher operating expenses. Net income was $32.7 million, or $1.15 per share, compared with $33.7 million, or $1.27 per share, in 1995. Interest expense declined to $26.2 million from $31.0 million, aided by lower interest rates and reduced debt after the 1995 IPO. By segment, freight car sales declined to $211.1 million from $240.5 million on lower OEM deliveries, while locomotive sales rose 21% to $118.5 million on electronic products and passenger transit sales rose to $107.1 million, driven by the Vapor acquisition. Total debt was $341.7 million at year-end 1996, and shareholders' equity was a deficit of $76.2 million. Operating cash flow was $58.9 million. Backlog was approximately $214 million at December 31, 1996. The company disclosed a subsequent event: on March 4, 1997, it agreed to repurchase 4 million shares from Scandinavian Incentive Holding B.V. at $11 per share, totaling $44 million, funded largely by up to $46 million of additional borrowings and expected to close by March 31, 1997, subject to senior noteholder approval. Environmental matters and product liability are described as not presently material, with American Standard indemnifying certain claims.
Mar 26, 1997