Wabtec raises 2023 profit forecast as customers modernize fleets to save costs
Oct 25 (Reuters) - U.S. freight and locomotive maker Wabtec raised 2023 profit forecast on Wednesday, as aftermarket sales were boosted by customers looking to modernize their existing fleets, sending its shares up 4% in premarket trading.
The company manufactures new locomotives and provides aftermarket parts, services, and critical components for freight cars and transit vehicles.
Customers have been looking to cut costs through upgraded, higher-efficiency fleets, benefiting the company's freight and transit segments.
The Pennsylvania-based company now expects full-year profit between $5.80 and $6.00 per share, compared with $5.50 to $5.80 per share expected previously.
Transit segment sales for the third quarter were up 20% due to strong OE and aftermarket sales, including spare parts, components and accessories to enhance existing vehicles.
"Demand remained strong, including international markets, where our pipeline of future opportunities continues to strengthen," said Wabtec CEO Rafael Santana.
Wabtec reported an adjusted quarterly profit of $1.70 per share, compared with analysts' estimates of $1.46 per share.
Total quarterly revenue was $2.55 billion, up 22.5% from a year earlier. Analysts, on average, were expecting revenue of $2.40 billion in the third quarter, as per LSEG data. (Reporting by Aishwarya Jain; Editing by Tasim Zahid)
