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Westinghouse Air Brake Technologies Annual Report, Year Ended Dec 30, 2000

Filing Date
Filed March 28, 2001
Period End
December 30, 2000
Security
WAB
In the record · 2016–202610-K1110-Q338-K132

WAB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 132 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Mar ’17Mar ’17
  2. Leadership change8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Aug ’21Aug ’21
  4. Material agreement8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 10-K filed March 28, 2001. Cited figures are marked; the original filing is the authoritative source.

Westinghouse Air Brake Technologies Corporation (filing name; doing business as Wabtec Corporation) reported net sales of $1,027,976 thousanda ($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 millionb 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 $1.10c 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 milliond 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.

02—Key points

Key Highlights

  1. Net sales were $1,027,976 thousand in 2000, down 8.3% from $1.1 billion in 1999, mainly due to lower Freight Group volumes; Freight Group sales were $749.7 million versus $882.9 million.
  2. Transit Group sales rose to $278.3 million from $238.2 million, driven by increased shipments under the MTA contract.
  3. Diluted EPS was $0.59 in 2000 versus $0.83 in 1999; excluding special items, EPS would have been $1.10 versus $1.74.
  4. Income from operations was $89.5 million, down from $116.0 million, with the company citing a $29.1 million merger and restructuring charge.
  5. Total backlog fell to $852.4 million at December 31, 2000, from $1.27 billion at December 31, 1999.
  6. Total debt was $540.2 million at year-end 2000, and the credit agreement restricts dividend payments; the company is described as highly leveraged.
  7. The company expects 2001 industry deliveries of about 1,200 locomotives and 45,000 freight cars, and it adopted a plan to repurchase up to $75 million of common stock.

03—Questions

Frequently Asked Questions

  1. Why did sales and earnings decline in 2000?

    The filing attributes the 8.3% sales decline primarily to lower North American OEM freight car and locomotive component volumes and lower locomotive overhauls within the Freight Group. Freight car deliveries were 55,821 in 2000 versus 74,223 in 1999. Net income also reflected the $29.1 million merger and restructuring charge and higher interest expense.

  2. What were the one-time items affecting 2000 results?

    2000 results included a $29.1 million merger and restructuring charge, a $4.4 million gain on the disposition of a product line, a $5.1 million write-off of a deferred tax asset related to ESOP termination, and a $2 million legal settlement with GE-Harris.

  3. How is the company's debt position and liquidity?

    Total debt was $540.2 million at December 31, 2000, and net debt was $534.1 million. The company had about $106 million of available borrowing capacity under its credit agreement. The filing states the company is highly leveraged and that its credit agreement limits dividends, though it believes cash flow and liquidity will be sufficient to meet its needs.

  4. What is the outlook for the business?

    The filing says the company believes demand for its products will remain reasonably strong for the foreseeable future, based on industry data showing a decline in 2001 OEM deliveries from 2000 levels. It expects 2001 deliveries of about 1,200 locomotives and 45,000 freight cars, and it estimates remaining merger and restructuring charges of $5 million in 2001. The company also cautions that backlog should not be relied upon as an indicator of future performance.

04—Continue

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