WABCO Holdings Q4 Net Income Widens
The company posted gross profit was $177.5m for the fourth quarter of 2010, compared to $115.3m for the same period in 2009. Operating income was $69.5m, compared to $25.7m for the same period in 2009. Selling and administrative expenses were $82.5m, compared to $72.4m for the same period in 2009.
For the full year ended December 31, 2010, the company posted a net loss of $226.1m, or $3.50 per diluted share, compared to a net income of $18.8m, or $0.29 per diluted share, for the same period in 2009. Gross profit was $615.1m, compared to $327.8m for the same period in 2009.
Operating income was $217.6m for the full year of 2010, compared to an operating loss of $14.9m for the same period in 2009. Selling and administrative expenses were $307.4m, compared to $251.9m for the same period in 2009.
WABCO reported fourth quarter 2010 performance operating margin of 12.3 percent, up from 6.2 percent a year ago, while operating margin was 11.1 percent on a US GAAP basis, up from 5.6 percent a year ago.
The company reported full year 2010 performance operating margin of 10.6 percent, up from 2.9 percent a year ago, while operating margin was 10 percent on a US GAAP basis, up from a negative one percent a year ago.
Based on current market expectations, WABCOâ€™s guidance for 2011 includes an estimated increase in 2011 sales that ranges from 18 to 23 percent in local currencies, performance operating margin to range from 12.6 to 13.6 percent, and operating margin on a US GAAP basis to range from 12.2 to 13.2 percent, resulting in diluted earnings per share on a performance basis from $3.75 to $4.15, and diluted earnings per share on a US GAAP basis from $3.87 to $4.27.
WABCO reiterates that it expects to convert between 80 and 90 percent of its net income into free cash flow, excluding payments associated with streamlining and separation activities.
Jacques Esculier, chairman and CEO of WABCO, said: â€œQ4 2010 was another period of outstanding results as we significantly grew sales by 41 percent in local currencies while at the same time delivering an incremental operating profit margin at the remarkable level of 28 percent.
â€œIndeed, our fourth quarter results are fully consistent with WABCOâ€™s strong performance that we built up during the previous three quarters in 2010, demonstrating throughout the year our ability for continuity in growing revenues, gaining productivity and delivering superior incremental profitability.â€
Will the firm further improve net income in Q1?
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