Wabco 4Q net declines on slower vehicle production

Wabco 4Q net declines on slower vehicle production, results top expectations and shares rise

Associated Press

Wabco Holdings Inc. said Friday that its fourth-quarter net income fell 14.5 percent as worldwide production of trucks and buses declined. The results were better than analysts expected, and its shares rose.

Brussels-based Wabco makes technology and control systems for commercial vehicles. It earned $59.7 million, or 93 cents per share, for the quarter that ended Dec. 31. That was down from $69.8 million, or $1.04 per share, during the same period a year earlier. Revenue fell 11.2 percent to $596.5 million.

Analysts surveyed by FactSet expected profit of 94 cents per share on revenue of $593.6 million.

New truck and bus manufacturing fell 15 percent in Europe and 26 percent in India. Sales of replacement parts rose 9 percent.

The company expects adjusted earnings of $4.30 to $4.80 per share this year. Analysts forecast $4.71 per share. Wabco also expects to release a $200 million valuation allowance from a tax benefit in the fourth quarter of 2013, which would push full-year earnings to $7.26 to $7.76 per share.

Wabco shares rose $4.02, or 5.9 percent, to $72.68 in afternoon trading.

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