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Wabco 4Q net declines on slower vehicle production

The 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.