Wabco Income, Revenue Advance in Third Quarter
Commercial vehicle supplier Wabco Holdings Inc. reported third-quarter net income and earnings rose despite a challenging North American commercial vehicle market.
Income for the period ended Sept. 30 jumped to $98 million, or $1.76 per share, compared with $39 million, or 67 cents, the Brussels-based company said, citing increased content per vehicle and cost efficiencies.
Revenue increased to $675 million, compared with $644 million a year earlier.
“I would describe the entire industry converging towards a common vision around which we have sealed a pretty strong commitment, and that is to drive autonomous driving through our industry as well as digitalization,” Jacques Esculier, chairman and CEO, said in an earnings call.
Sales in North America — which comprises about 14% of its overall market — decreased 13.2%, driven by an estimated 25% decrease in production of new trucks and buses. The heavy-duty segment where Wabco has a higher value per vehicle dropped about 35%.
“Inventory levels at [U.S.] dealers is still very high at around 60,000 trucks," Esculier said. "That is potentially in excess of 15,000 to 20,000 beyond the normal level of inventory, and that will penalize not only the fourth quarter but probably next year's production levels,” Total sales in Europe, Wabco's largest market, increased 4.1%, the company said, driven by increased content per vehicle, including brakes and an increase of its market share of automated manual transmission, partly offset by about a 2% decline in European original equipment manufacturer production.
Its aftermarket sales increased by 4.5%, despite market headwinds from North America, the Middle East, China and Turkey, Wabco said.
